Your First Job: A Teen's Guide to Working

Your first paycheck unlocks more than money — it unlocks opportunity

Why Your First Job Matters

Getting a first job isn't just about earning money. It's about:

Roth IRA eligibility — You need earned income to contribute
Credit building — Income helps qualify for credit later
Tax filing experience — Real-world learning before high stakes
Independence — Your own money, your own choices
Resume building — Work experience matters for college and careers

For athletes, first jobs can include NIL income, coaching younger kids, or traditional part-time work.

Work Permits & Legal Requirements

Do You Need a Work Permit?

Most states require work permits (also called "employment certificates" or "working papers") for workers under 18.

Age	Typical Requirements
14-15	Work permit required, strict hour limits, limited job types
16-17	Work permit usually required, more flexible hours, more job types
18+	No work permit needed, full adult employment rights

How to get one:

Get a job offer (you need this first)
Request a work permit form from your school
Have your employer and parent sign it
Return to school for official certificate
Give certificate to employer before starting

Hour Restrictions

Federal law (and most states) limits work hours for minors:

Age	School Days	Non-School Days	School Weeks	Non-School Weeks
14-15	3 hrs/day	8 hrs/day	18 hrs/week	40 hrs/week
16-17	No federal limit*	No federal limit*	No federal limit*	No federal limit*

*State laws may be stricter. Iowa, for example, has specific rules for minors.

Jobs Minors Cannot Do

Some jobs are prohibited for workers under 18:

Operating heavy machinery
Mining or excavation
Manufacturing explosives
Most driving jobs
Roofing
Working with certain chemicals

Employee vs. Independent Contractor

This matters for taxes. Understand the difference:

Employee (W-2)	Independent Contractor (1099)
Employer withholds taxes	You pay your own taxes
Set schedule/hours	Flexible schedule
Uses employer's tools	Uses your own tools
Employer pays half of Social Security/Medicare	You pay full self-employment tax (15.3%)
Get W-2 form	Get 1099 form

Common teen employee jobs: Retail, food service, lifeguarding, camp counselor

Common teen contractor work: Babysitting, lawn care, tutoring, freelance design, NIL deals

Why it matters: If you're an independent contractor, you need to save ~25-30% of each payment for taxes. Employees have taxes automatically withheld.

Understanding Your Paycheck

The W-4 Form

When you start a job, you'll fill out a W-4 form. This tells your employer how much tax to withhold.

For most teens:

Check "Single"
If you expect to earn under the standard deduction (~$14,600 for 2024), you may be exempt from federal withholding
State rules vary

Important: Even if you claim exempt, you'll still have Social Security and Medicare taxes withheld (7.65% of your pay). That's normal.

Reading Your Pay Stub

Line Item	What It Means
Gross Pay	Total earned before deductions
Federal Tax	Income tax withheld for federal government
State Tax	Income tax withheld for state (if applicable)
Social Security	6.2% of pay for retirement system
Medicare	1.45% of pay for healthcare system
Net Pay	What you actually receive (your "take-home")

The shock: If you earned $100, you might only get $80-85 in your pocket. This is normal. Welcome to taxes.

First Job Ideas for Athletes

Job Type	Pros	Cons
Coaching younger kids	Uses your skills, flexible, high hourly	Seasonal, requires coordination
Lifeguarding	Good pay, outdoor, social	Requires certification, seasonal
Referee/Umpire	Uses sports knowledge, weekend work	Dealing with parents, game-day only
Camp counselor	Fun, builds leadership, summer-intensive	Low pay, long hours
Retail/Food service	Consistent hours, easy to find	Less flexible, may conflict with training
Tutoring	High hourly, flexible	Need expertise, finding clients
NIL opportunities	Athlete-specific, brand building	Variable income, requires platform

What ISP Teaches

The First Job Challenge

ISP students in the Financial Skill Tree work through:

Explore — Research job options that fit your schedule
Prepare — Build a simple resume or job application
Apply — Submit at least 3 applications (or start a side hustle)
Work — Complete your first paid work
Document — Save your first pay stub
Teach — Create a "You Teach" video about what surprised you

Why This Matters for Athletes

Your first job does more than pay for gear:

Roth IRA eligibility — Earned income lets you start the most powerful wealth-building account for teens
Tax practice — Learn to file on small amounts before NIL checks get complicated
Time management — Balancing work and training is a skill

The Athlete Advantage: NIL as a "Job"

If you're earning NIL income (sponsorships, appearances, content), congratulations — you have a job.

But NIL income is usually contractor income (1099), which means:

No taxes are withheld
You're responsible for estimated tax payments
You can deduct business expenses
You need better record-keeping

See NIL & Athlete Income → for the full breakdown.

Common First Job Mistakes

Mistake	Why It's a Problem	What to Do Instead
Not saving pay stubs	Can't verify income, harder to file taxes	Keep digital copies of everything
Spending it all	No savings, no Roth IRA contributions	Save at least 20% automatically
Ignoring withholding	Surprised at tax time	Understand your W-4 and check pay stubs
Working too many hours	Grades and training suffer	Know your limits, prioritize
Not negotiating	Leave money on the table	Ask about raises after 6 months

FAQ

Q: How young can you legally work?

A: Federal law allows limited work starting at age 14 (with restrictions). Some states allow certain jobs (like delivering newspapers or acting) even younger.

Q: Do I need a work permit for babysitting or lawn care?

A: No — these are typically informal/contractor jobs, not covered by work permit laws. But you still need to report the income for taxes if you earn enough.

Q: Can my employer pay me in cash?

A: Technically yes, but they should still report it and you should still report it on taxes. "Under the table" work is technically tax evasion.

Q: What if my job conflicts with training?

A: This is exactly why ISP's 2-hour academic model exists. You have time for work AND training. But communicate with your employer about your athletic schedule.

Q: How much should I save from each paycheck?

A: At minimum, 20%. If you're saving for something specific (car, college, Roth IRA), more is better. Pay yourself first — transfer to savings before spending.