Protecting Financially Successful Youth’s Incomes

Abstract

Children have been part of the American work force for centuries, and while there has been significant progress in implementing laws to protect children from exploitation there has not been a corresponding increase in protection with respect to protecting children’s rights with respect to their earnings. Some states have addressed this issue, but have only made minor concessions to the premise that children are not entitled to their earnings. But most states have not enacted any substantial protective laws in this area. To remedy this oversight, this chapter argues that states should implement legal reform that would address the three major flaws in the current approach, which are the lack of ownership rights for children under the age of eighteen, the under inclusiveness of the current laws, and the lack of gradation in financial responsibility. Current research suggests that children as young as sixteen demonstrate comparable decision-making skills to adults in situations where there are not significant emotional circumstances; situations not likely to be present when children are making financial decisions. By instituting laws that include all types of employment, not just high-income occupations, granting children over sixteen absolute ownership rights to their earnings, and graduating the amount of access children have to their money, the responsibilities a child bears by entering the workforce will more closely correspond with the benefits of being in appropriate control of their money.