To be concerned about DD and freelance work

[Inglenooky]

DD (19) is working a dream job / traineeship in a media type role.

She absolutely loves it and is certain that it’s the right path for her. She was incredibly fortunate to be selected for the traineeship but it ends in the summer.

There doesn’t seem to be a full time job at the end of it but people tend to go on to an ‘attachment’ or freelance. She says that there are people who have been freelance for years and they never get made permanent.

Shes quite happy to stay and take a short term contract or freelance as she’s loves the job but we’ve no experience of this kind of work and have always been in long term permanent posts.

Can anyone reassure me about whether it’s possible to get a mortgage/ credit etc whilst on these kind of contracts? Are they ok long term? Or should we be encouraging her to move to something permanent and more settled? Ultimately it’s her life and choices and we would want her to be happy but I can’t help worry a bit that it won’t be a sensible decision long term.

At 19 it could work well for her, but what is their financial literacy like in general? Has she thought about things like buying a house yet? It would be wise to review private pension contribution. Would she do her own tax and NI? What about other benefits like maternity leave, holiday entitlement (and Bank holidays)?

I'd start with asking her how it all works, and then encouraging her to ask a co-worker how they manage it being free lance.

It’s very common in some industries.

Mortgages aren’t a problem as long as you can show steady employment and 3 years of accounts.

On the plus side she’ll pay a lot less tax.

My brother is freelance in a very similar industry - mid 30s now and made a name for himself and very successful/financially well off!

Just bought his first flat and needed 3yrs of proof of earnings. He does also have an accountant which helps keep things in order.

If she’s talented, willing to work very hard to build a portfolio and is resilient enough to deal with rejection, the financial side will eventually pick up but it could be a long time with lots of ‘dry’ periods in between.

She’s 19! Surely getting experience in an industry she loves without having to worry about the mortgage impact is one of the benefits of being so young?