TLDR: Deferring High School, working from Age 15 and investing all monies earned and going back to school at Age 20 should be highly considered.
I liken myself to a contrarian and like to think outside the box. Our society has ingrained upon us that there are steps to life, getting your high school diploma, going to college, getting a job, getting married, having kids, etc. School teaches many things, one thing it does not teach is how to build wealth, how to invest, how to become financially independent. I would suggest that school mores teaches and socializes society to become employees, that becoming financially independent itself. When it comes to growing money and investing, with the power of compounding interest, the earlier you are able to put away money, the more drastic effect this has on the multiplication of such money as your life proceeds. So instead of squandering the youngest years that you could earn money (from age 15) while in high school, what would it look like if you decided to defer school (i.e. not go to grade 9), with plans to continue with it at age 20, after working for 5 years, earning income that you would fully invest, as most parents would be providing you with the necessaries of life during ages 15-19.
Year 1 - Age 15
Assumptions
Minimum Wage Job: $15/hr
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes & being able to start work at age 15)
Gross Pay: $22,250.00
Net Pay (after taxes and deductions): $20,417.16
Year 2 - Age 16
Assumptions
Wage: $16/hr (Note: $1/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $24,000.00
Net Pay (after taxes and deductions): $21,545.52
Amount Invested: $20,417.16 (earned from Year 1)
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $1,633.37
Total: $22,050.53
Year 3 - Age 17
Assumptions
Wage: $16.50/hr (Note: $0.50/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $24,750.00
Net Pay (after taxes and deductions): $22,065.24
Amount Invested: $21,545.52 (earned from Year 2) + $22,050.53 (carried forward) = $43,595.05
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $3,487.68
Total: $47,082.73
Year 4 - Age 18
Assumptions
Wage: $17/hr (Note: $0.50/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $25,500.00
Net Pay (after taxes and deductions): $22,584.96
Investments: $22,065.24 (earned from Year 3) + $47,082.73 (carried forward) = $69,147.97
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $5,531.84
Total: $74,679.81
Year 5 - Age 19
Assumptions
Wage: $17.50/hr (Note: $0.50/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $26,250.00
Net Pay (after taxes and deductions): $23,104.80
Investments: $22,584.96 (earned from Year 4) + $74,679.81 (carried forward) = $97,263.77
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $7,781.18
Total: $105,044.95
Year 6 - Age 20 - BACK TO SCHOOL (GRADE 9)
Investments: $23,104.80 (earned from Year 5) + $105,044.95 (carried forward) = $128,149.75
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $10,251.98
Withdrawal from Investment: $8,000.00
Capital Gains Tax: $1,000.00
Net Cash Withdrawn: $7,000.00 (to be invested in TFSA)
Total: $130,401.73
Things at this time, you go back to school and continue with grade 9 at age 20. You reduce your hours at work to a reasonable 15 hours week. You have an investment fund now worth $138,401.73. You begin to withdraw $8,000.00/yr, which after paying capital gains tax at 25% on 1/2 of the gain (i.e. $1,000.00 in tax), nets you $7,000.00 which you then use to to fund your TFSA each year in perpetuity (note how the annual estimated growth exceeds the $8,000 that is withdrawn each year moving forward). At the same time, from this point forward, you could spend every dollar you earn for the remainder of your life, without having to worry about saving for retirement. Your original investment fund will continue to grow each year, while your TFSA is maxed out every year as well. Over time this will result in enormous growth and likely financial freedom by 50 years old. At the same time you finish high school at 23 years old, but extra-ordinarily wealthy for such age. You could go to university for 4 years and finish at age 27 and start your career at age 28, which really isn’t very old and you’d be rock solid financially secure for life, by working when you were younger.
For starters, I'm not saying school isn't important, it is, but it's also not the worst thing in the world to take a break from schooling. In full disclosure, I'm not exactly sure how much more difficult it would be to continue schooling after a 4 year break, I haven't done the research. I would, however, suggest that the social aspects of being in school and at work are similar, in the sense of building friendships and relationships. Again, I realize that is completely unconventional and goes against everything in society, but this is a strategy, from a financial perspective, that would work for most people and could set them up for immense financial success in life.
I liken myself to a contrarian and like to think outside the box. Our society has ingrained upon us that there are steps to life, getting your high school diploma, going to college, getting a job, getting married, having kids, etc. School teaches many things, one thing it does not teach is how to build wealth, how to invest, how to become financially independent. I would suggest that school mores teaches and socializes society to become employees, that becoming financially independent itself. When it comes to growing money and investing, with the power of compounding interest, the earlier you are able to put away money, the more drastic effect this has on the multiplication of such money as your life proceeds. So instead of squandering the youngest years that you could earn money (from age 15) while in high school, what would it look like if you decided to defer school (i.e. not go to grade 9), with plans to continue with it at age 20, after working for 5 years, earning income that you would fully invest, as most parents would be providing you with the necessaries of life during ages 15-19.
Year 1 - Age 15
Assumptions
Minimum Wage Job: $15/hr
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes & being able to start work at age 15)
Gross Pay: $22,250.00
Net Pay (after taxes and deductions): $20,417.16
Year 2 - Age 16
Assumptions
Wage: $16/hr (Note: $1/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $24,000.00
Net Pay (after taxes and deductions): $21,545.52
Amount Invested: $20,417.16 (earned from Year 1)
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $1,633.37
Total: $22,050.53
Year 3 - Age 17
Assumptions
Wage: $16.50/hr (Note: $0.50/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $24,750.00
Net Pay (after taxes and deductions): $22,065.24
Amount Invested: $21,545.52 (earned from Year 2) + $22,050.53 (carried forward) = $43,595.05
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $3,487.68
Total: $47,082.73
Year 4 - Age 18
Assumptions
Wage: $17/hr (Note: $0.50/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $25,500.00
Net Pay (after taxes and deductions): $22,584.96
Investments: $22,065.24 (earned from Year 3) + $47,082.73 (carried forward) = $69,147.97
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $5,531.84
Total: $74,679.81
Year 5 - Age 19
Assumptions
Wage: $17.50/hr (Note: $0.50/hr raise earned)
Hours Worked: 30 hours/wk (50 weeks worked annually)
Jurisdiction: Alberta (for tax purposes)
Gross Pay: $26,250.00
Net Pay (after taxes and deductions): $23,104.80
Investments: $22,584.96 (earned from Year 4) + $74,679.81 (carried forward) = $97,263.77
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $7,781.18
Total: $105,044.95
Year 6 - Age 20 - BACK TO SCHOOL (GRADE 9)
Investments: $23,104.80 (earned from Year 5) + $105,044.95 (carried forward) = $128,149.75
Estimated Rate of Return: 8% (Invested in S&P 500 ETF; i.e. VFV)
Estimated Growth on Investment: $10,251.98
Withdrawal from Investment: $8,000.00
Capital Gains Tax: $1,000.00
Net Cash Withdrawn: $7,000.00 (to be invested in TFSA)
Total: $130,401.73
Things at this time, you go back to school and continue with grade 9 at age 20. You reduce your hours at work to a reasonable 15 hours week. You have an investment fund now worth $138,401.73. You begin to withdraw $8,000.00/yr, which after paying capital gains tax at 25% on 1/2 of the gain (i.e. $1,000.00 in tax), nets you $7,000.00 which you then use to to fund your TFSA each year in perpetuity (note how the annual estimated growth exceeds the $8,000 that is withdrawn each year moving forward). At the same time, from this point forward, you could spend every dollar you earn for the remainder of your life, without having to worry about saving for retirement. Your original investment fund will continue to grow each year, while your TFSA is maxed out every year as well. Over time this will result in enormous growth and likely financial freedom by 50 years old. At the same time you finish high school at 23 years old, but extra-ordinarily wealthy for such age. You could go to university for 4 years and finish at age 27 and start your career at age 28, which really isn’t very old and you’d be rock solid financially secure for life, by working when you were younger.
For starters, I'm not saying school isn't important, it is, but it's also not the worst thing in the world to take a break from schooling. In full disclosure, I'm not exactly sure how much more difficult it would be to continue schooling after a 4 year break, I haven't done the research. I would, however, suggest that the social aspects of being in school and at work are similar, in the sense of building friendships and relationships. Again, I realize that is completely unconventional and goes against everything in society, but this is a strategy, from a financial perspective, that would work for most people and could set them up for immense financial success in life.