There are many different types of employment and ways to earn money in the world today. Now more than ever, kids have the opportunity to earn their own income and start forming great money habits from an early age. It’s important to teach kids how their type of employment can impact their money and how they get paid.
Different types of employment
Parents want their children to learn how to be financially independent and make their own money. Whether your teen is considering a first job as an employee at a company or your child is interested in becoming an entrepreneur with their own business, different types of employment are important to understand.
What are employees?
Employees are people hired by a company to do a specific job in exchange for a set amount of money. Employees agree to a contract with rules for how they will work and get paid. You can explain to your child that an employee can also receive special benefits from their employer, and they have certain employee rights protected by the law.
Part-time and full-time types of employment
The main difference between part-time and full-time employees is how many hours they work. Full-time employees meet a certain amount of hours worked and may have more responsibilities than part-time. Depending on the laws in your area and the company you work for, full-time employees may get better benefits, pay, and opportunities than part-time workers.
Part-time work is a great option for teenagers new to the workforce or kids who want to work around a school schedule. Many part-time jobs are entry-level and allow kids to get experience working before they commit to a full-time job or career.
What are contract and freelance types of employment?
Contract and freelance types of employment have exploded in recent years. More kids are starting their own businesses or side hustles. It’s important to understand that contractors and freelancers don’t get paid the same way or have the same protections as employees. Instead, contractors and freelancers act as their own bosses and decide how much they are paid. They also have more financial responsibility than a regular employee.
If your child is interested in becoming an entrepreneur, help them understand the difference between being an employee and being a contractor, freelancer, or business owner. As they learn about different types of employment and how to make money, they’ll be more prepared to manage their own money.
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