Introduction to Minimum Wage for Kids and Teens
This video explains the concept of minimum wage in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about minimum wage, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is minimum wage
- Who decides minimum wage
- Working for less than minimum wage
- Change in minimum wage change over time
What is minimum wage?
Minimum wage is the minimum hourly wage an employer can pay an employee.
This number is determined by the government, and it is illegal for employers to pay their non-exempt workers anything below the minimum wage. This is very important, because it makes sure that employees do not fall into poverty.
As of April 2021, the federal minimum wage in the US was $7.25 an hour.
Who decides minimum wage?
The federal government decides the minimum wage, but state or local governments can choose a different minimum wage as long as it is higher than the federal minimum wage.
For example, in April 2021, San Francisco’s minimum wage was $15.59 per hour – which is more than double the federal minimum wage. This is because the cost of living is higher in San Francisco than the national average.
Can some people legally work for less than minimum wage?
Yes, some people, called exempt employees, don’t qualify for minimum wage.
For example, waiters and waitresses aren’t guaranteed a minimum wage because in addition to payment from their employer, they also earn money from tips.
Students, people under 20, and people with disabilities can also be paid below minimum wage.
Does minimum wage change, or does it stay the same?
Minimum wage is increased from time to time, in line with inflation and the resulting increase in the cost of living.
For example, the US federal minimum wage in 1975 was $2.10. But as of April 2021, it was $7.25.
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is Minimum Wage
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
All you need to know about minimum wage: What is minimum wage, Who decides the minimum wage, Can some people legally work for less than minimum wage, Does minimum wage change or does it stay the same, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/minimum-wage-for-kids-beginners/