Helping the Young Adult in Your Life Evaluate Their First Job Offer: It’s More Than Just the Salary
Watching your child (or grandchild, or niece/nephew, or godchild, etc.) land their first “real” job after high school or college is a proud milestone. But after the champagne glasses are set down and the excitement fades, reality sets in: how do they know this offer is actually a good one? Many young adults naturally zero in on the starting salary—and who can blame them? It’s the number that grabs their attention first. But as any seasoned professional knows, there’s much more to a job offer than the paycheck. This is where you can help guide them through the bigger picture.
Let’s break down what to look for beyond the salary.
401(k) Contributions: Free Money with Long-Term Impact
A strong retirement plan, especially one with employer matching, can dramatically impact future wealth.
Consider this: If their employer offers a 4% 401(k) match on a $60,000 salary and they contribute the same, that’s $2,400 of “free” money per year. Over 30 years, with an average 7% annual return, that match alone could grow to more than $227,000.
Key questions to ask:
- Does the company offer a 401(k), Roth 401(k), or similar plan?
- What is the employer match percentage?
- When do employer contributions fully vest?
Health Insurance: Invisible but Costly Protection
While health insurance may feel boring compared to salary, it can have a huge impact on financial well-being. If you’re helping a child who is on your insurance still, there’s a chance they might not know a lot of these terms so check in with them first to see what knowledge gaps you need to fill.
Help them check:
- What’s covered—medical, dental, vision?
- How much are the monthly premiums?
- What's the deductible?
- Is there a Health Savings Account (HSA) or Flexible Spending Account (FSA) option?
A lower premium or better coverage could save thousands of dollars in the long run, especially if unexpected medical needs arise.
Stock Options & Equity: A Slice of Ownership
Some companies—especially startups and tech firms—offer stock options or equity as part of the compensation package. This can be exciting but tricky to evaluate.
Discuss:
- Is the company publicly traded or private?
- What’s the vesting schedule (the time your child must stay before the stock fully belongs to them)?
- How has the company performed historically—and what’s its growth outlook?
While equity can be lucrative, it's rarely guaranteed. Make sure they understand the risks before counting stock options as take-home pay.
Other Benefits: Hidden Financial Value
Benefits like these can add surprising dollar value:
- Paid time off: Average U.S. worker gets 11–15 days in the first year—worth ~$2,500 based on salary.
- Professional development: Tuition reimbursement or certifications may save $1,000–$5,000 annually.
- Remote work flexibility: Saves commuting, wardrobe, and meal costs—an average of $4,000/year according to FlexJobs.
Since we’re all individuals with our own goals, some benefits aren’t as important to us as others. This is a good time to help your child think about what their professional priorities are. They may not have even asked themselves this yet with how focused they’ve been on just getting an offer.
The Bottom Line: Salary Is Just the Starting Point
The “highest offer” on paper may not be the most valuable in practice. A job with better retirement contributions, health coverage, and growth perks could out-earn a slightly higher paycheck.
Sit with your child. Compare benefits side-by-side. Assign dollar values wherever possible to help them make a truly informed—and confident—career decision.
Your guidance here could set them up for decades of financial security.
Congratulations to them and best of luck!
-Chandler