5. Being next to young people when they receive their first income

CHAPTER 5 Being next to young people when they receive their first income

Author Gintarė Joteikaitė

In many cultures, the question of how much money someone makes remains taboo. Moreover, according to the rules of communication etiquette, it is considered rude to even ask about the someone’s financial situation and income, and when asked, most people avoid talking about the salary they receive because they consider this topic personal and even intimate. This is one of the reasons why the vast majority of young people find it so difficult to get acquainted with the current situation in the labour market and as a result they face financial anxiety when they find employment. Sometimes dishonest employers even tend to take advantage of less experienced and less self-confident employees by paying them significantly less than they would be entitled to, by luring them into the traps of illegal work, by paying in black money and thus leaving a person without any social guarantees and etc.

At the beginning of a young person’s active financial life, when he/she is no longer financially dependent on his/her parents or guardians and becomes financially independent, the youth worker can play one of the most important roles of becoming an informal financial adviser and guide. But where to start the process of developing personal financial management?

The successful preparation of a young person for his/her first independent financial experience consists of examining the aspects that are set out below, being with the young person when he/she expresses his/her personal expectations and helping to adjust them:

• financial literacy, legal aspects – to help to perceive the state tax system, salary calculation, to understand prices;

• awareness of the price and remuneration market – to encourage the examination of the average salary in the field of interest where the person intends to apply and to prepare all the necessary information related to financial matters before the job interview;

• self-esteem and internal attitudes related to money – to accompany the person in his/her way of perceiving his/her personal self-esteem. Low self-esteem and limiting attitudes in terms of money and financial well-being can become a serious obstacle while taking the first steps in one’s career and shaping personal financial independence;

• boundaries, workers’ rights and dignity – when accompanying a young person during his/her first job experience, it is important to understand his/her feedback on workloads, remuneration, relationship with the employer, while responding immediately to psychological violence, labour exploitation, inappropriate workload distribution as well as to help to set boundaries and build respectful work relations;

• talking about the salary with the employer – to prepare for all possible cases when raising the question of salary: during the first job interview, before a paid or unpaid work placement, after an

internship or at the end of a probation period in the transition to a permanent job, etc.;

• personal financial management skills – to help to plan a personal budget and reflect the feelings and emotions after receiving the first income as well as to discuss their use.

Being next to a young person on his/her path of personal financial life could consist of the following stages:

1. Provision of information on the above issues, discussion, expression of fears and expectations – an open conversation and examination of the topic in all possible aspects will help to relax and no longer feel the tension while thinking about this topic. 2. Identification of financial needs and visions for financial remuneration.

3. Labour market analysis, data collection – to encourage a closer look at the labour market situation in the area of interest – job offers and salaries, depending on experience, education, etc.

4. Preparation to talk about money during a job interview, preparation for the first processes of selling goods or services – one may prepare an interview script, create an imaginary situation as well as improvise.

5. Regular reflections on the topic of financial management.

6. Completion of the accompanying process – the young person already admits that he/she feels confident and calm in managing his/her personal finances independently.