Are Seasonal Jobs Really Worth the Extra Cash?

seasonal jobs

You’ve probably already seen the signs: “Hiring for the holidays! Apply now!”

You can find them in nearly every store. And it’s hard not to be tempted by their promises of flexible hours, good pay, and store discounts.

This year, the National Retail Federation estimates that their represented businesses will hire as many as 690,000 seasonal or temporary workers. This doesn’t include the numerous other industries that also open their payrolls for people interested in making some extra cash.

For the last fifteen years, I’ve been one of those people with resumes in hand and an empty schedule from October through February applying for seasonal jobs. I’ve worked a variety of positions, from a cashier at a major big box store to singing carols with a Dickinson-style troupe.

With all this seasonal employment under my belt, I can say that there are some major pros and cons of working holiday jobs. Here are a few things you should consider before submitting your application.

What are seasonal jobs?

When we think of seasonal jobs, we usually think of cashiering at a busy department store on Black Friday.

But there are a lot of temporary job assignments that can be classified as “seasonal.” In fact, it doesn’t even have to be during the early winter months.

What’s more, seasonal employees are given the same protections and benefits as those who are part-time or full-time workers, according to the U.S. Department of Labor. This includes being paid overtime and receiving at least a minimum wage.

In other words, your ideal seasonal job may be working as a tour guide during the busy tourist season from May through August. You could even work a holiday job that’s not during the winter, like dressing up as an Easter bunny or staffing a Halloween haunted house.

And once you’re done with your seasonal jobs, some businesses may guarantee you your position for the next season. Or, in some cases, working a holiday job could even lead to a regular, full-time job.

Pros of working a holiday job

When I was just out of college and struggling to pay my bills as a first-year teacher, I was genuinely scared of the holidays. I could barely pay my rent, let alone buy my niece a $10 gift.

That’s when I decided to ramp up my seasonal employment. My first year, I brought in over $10,000 in just three months. That was enough to pay my rent for the remainder of my lease, pay off a small car loan, and give my family presents for the holidays.

Supplemental income can also help you overcome financial hurdles. After all, cash windfalls from a seasonal job are one of the best ways to pay down substantial debt or to build an emergency fund.

Instead of taking money out of your regular paychecks for extra payments, this “added” money can be used instead. And, you won’t miss it when it’s gone.

For those not working a steady job while working seasonally, holiday jobs can be a great way to tie you over through a period of unemployment. Or during a post-graduation job hunt.

However, if you’re currently receiving unemployment benefits and considering applying for a seasonal job, check with a labor expert in your state on rules regarding seasonal employment.

What are the benefits of holiday jobs?

There are also many store benefits employees can enjoy that make seasonal work more attractive. For example, a 20 percent discount at a favorite store could save your big bucks when you do your holiday shopping there.

Other seasonal jobs, such as travel-related industries, may provide free lodgings on top of your paycheck.

Finally, if you’re looking to transition or find a new job, taking on a seasonal job may be your ticket in. Inexperienced workers can build that resume with seasonal work and add a host of potential references.

Make an impression on your boss, and you may even find yourself with a full-time regular job with the same company.

Cons of taking on seasonal work

The pay and benefits attached to seasonal jobs probably sound amazing. But a couple of hundred extra dollars a week may not be worth it for some people.

For one thing holiday jobs take away from, well, the holidays! Many retailers expand their business hours during the holidays. This could mean longer shifts and the possibility of working during the actual holidays.

Also, it will most likely be difficult to take a day off. Or even a vacation. Although some businesses vary on this, most seasonal jobs aren’t set up to accommodate paid leave or sick days either.

Employee benefits may be limited, too. There are most likely fewer opportunities for raises or advancement, and health insurance or retirement plans may be limited.

Should you work this holiday?

Seasonal work has long been my ticket to finding financial freedom.

However, it has come at a cost. You may lose out on enjoying the holidays with friends or have to work long hours after your regular day job.

With the pros and cons staked each way, it’s important to weigh all considerations before taking on seasonal jobs in the future.

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1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
  2. Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.29% APR to 11.44% APR (with AutoPay). SoFi rate ranges are current as of December 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.29% APR assumes current 1-month LIBOR rate of 1.34% plus 4.20% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2017, the one-month LIBOR rate is 1.23%. Variable interest rates range from 6.02% – 15.97% (6.02% – 15.97% APR) and will fluctuate over the term of your loan with changes in the LIBOR rate, and will vary based on applicable terms and presence of a co-applicant. Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with Citizens Bank at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, Citizens Bank checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.39% - 29.99%$1,000 - $50,000Visit Upstart
5.29% - 14.24%1$5,000 - $100,000Visit SoFi
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