Money for kids? (by Shelby [IA]) Jan 17, 2021 8:03 AM
Money for kids? (by Jeff [OH]) Jan 17, 2021 8:19 AM
Money for kids? (by gevans [SC]) Jan 17, 2021 8:26 AM
Money for kids? (by Robert J [CA]) Jan 17, 2021 9:06 AM
Money for kids? (by RB [MI]) Jan 17, 2021 9:37 AM
Money for kids? (by nhsailmaker [NH]) Jan 17, 2021 9:39 AM
Money for kids? (by Marv [IL]) Jan 17, 2021 10:56 AM
Money for kids? (by ned [AL]) Jan 17, 2021 11:26 AM
Money for kids? (by Jkj [MA]) Jan 17, 2021 12:36 PM
Money for kids? (by myob [GA]) Jan 17, 2021 1:09 PM
Money for kids? (by Shelby [IA]) Jan 17, 2021 1:11 PM
Money for kids? (by Ken [NY]) Jan 17, 2021 1:24 PM
Money for kids? (by Jkj [MA]) Jan 17, 2021 1:26 PM
Money for kids? (by Nicole [PA]) Jan 17, 2021 1:43 PM
Money for kids? (by plenty [MO]) Jan 17, 2021 1:56 PM
Money for kids? (by Shelby [IA]) Jan 17, 2021 7:12 PM
Money for kids? (by Shelby [IA]) Jan 17, 2021 7:12 PM
Money for kids? (by Homer [TX]) Jan 17, 2021 7:51 PM
Money for kids? (by gevans [SC]) Jan 17, 2021 8:12 PM
Money for kids? (by plenty [MO]) Jan 17, 2021 8:59 PM
Money for kids? (by Dee Ann [WI]) Jan 17, 2021 8:59 PM
Money for kids? (by BRAD 20,000 [IN]) Jan 18, 2021 2:14 AM
Money for kids? (by Shelby [IA]) Jan 18, 2021 7:48 AM
Money for kids? (by MMIT [VA]) Jan 18, 2021 9:14 AM
Money for kids? (by Shelby [IA]) Posted on: Jan 17, 2021 8:03 AM Message:
I have a vacancy and I’ve had this rental since 2012. I’ve touch up painted over the years but this is the first time I’m repainting the whole house. Also first time I hired my 12 year old to help. She’s doing a good job so far with maybe a couple tiny breaks for day 1. She’s rolling it all while I do edges and all the trim. Anyway, what do you all pay your young kids to help with something like this? I don’t want to be broke but I want to be fair. She got 5 1/2 hours in yesterday. Probably going to be 5 hours today and tomorrow too. We should be done in 2 weeks. They have school 4 days a week here. I’m keeping track of hours but not sure if I’m paying her per hour or set amount when job is done. It’s a 3 bedroom, 1 bath with also a back porch all around 800 square feet if that has any relevance- not painting the basement.
--50.82.xxx.xxx |
Money for kids? (by Jeff [OH]) Posted on: Jan 17, 2021 8:19 AM Message:
I have a 19 and 16 yr old and pay them $10 per hour. At that age we paid $5 per hour. We live in Ohio...definitely regional. --142.54.xx.xxx |
Money for kids? (by gevans [SC]) Posted on: Jan 17, 2021 8:26 AM Message:
You need to consult a tax lawyer on this. Our kids and grandkids have aged out, but there is a tax free exemption for your kids 7-17 working for you...somewhere around $5k/year. You want to pay them that full amount every year, but don't put it in their hands...
Charge them for room and board, let them buy their own clothes and entertainment, and manage savings for them until they can do it themselves.
Start a Roth account.
Pay them fair wages for everything they do: stuffing envelops, picking up trash, painting, modeling for advertisements, printing forms, etc. Teach them to budget, save, and invest. You won't regret it. --69.80.xx.xx |
Money for kids? (by Robert J [CA]) Posted on: Jan 17, 2021 9:06 AM Message:
I taught all of my kids and several friends kids about "Money", "Time", "Savings" and "investing". When I was around 14 my brother turned 16 and was about to get my parents hand me down car. So I asked dad what I could expect when I turned 16 and got a drives license. My dad told me not to worry, I could have any car I wanted. The only thing was, I had to pay for it myself!
So I had a part time job an began saving. Turned 16 and got my drivers license. By the way I got a perfect 100 score on my drivers test. Went to the Honda Dealer to by myself a new car. The Honda Civic was going to be $7,000. With sales tax, destination charges and fee's, the out of the pocket cost was around $8,000. So with the first years insurance, the total cost of the car would be around $9,000.
SO I asked my sales lady what I could get if I sold the car after the 1st year. She sadly said, around $5,000. I wasn't going to loose $4,000 just because I wanted a new car. So I left not buying a car.
Got a used car for $1,500 and saved. Before I turned 18, I went caravanning with a realtor. On my 18th birthday I made an offer on a 3 bedroom 2 bathroom house with a heated pool in Canoga Park, ca. Offer was accepted and after 40 days I closed escrow on my first rental.
So I explained instead of blowing $9,000 on a car I saved an purchased a $72,000 house with a $15,000 down payment.
At that time 1 in 5 renters wanted a pool. Then when the cost of utilities sored, only 1 in 24 renters wanted a pool. So I sold that house for $192,000, came out with a net proceeds of $125,000 and did an exchange for a huge house with NO Pool, costing $210,000. After the exchange I pulled a re-fi on the house and pulled out about $100,000.
So still no new car but a 5 bedroom rental with $50,000 equity and $100,000 in tax free cash. These numbers are off the top of my head... not exact but very close.
So when my kids say so what, you have a rental and a few extra bucks... I let them know that I still kept working and by 20 or 21 years of age I had 5 homes. Kept on going and moved up to apartment buildings, etc.
I didn't buy myself a new car until I was 50 years old. But purchased two new cars, 1 for my mom and 1 for the wife.
I did pay my children for working. But 75% of the money went into a broker investment account and 25% went into a local savings bank for their use.
When the kids wanted something big to buy, I'd offer to pay half if they worked for their half, and then tried to find it at a great price.
I also taught them if at age 20 they opened up a tax free retirement account and put away only $200 a month. By the time they turned 65, they'd have one million dollars.
--47.155.xx.xxx |
Money for kids? (by RB [MI]) Posted on: Jan 17, 2021 9:37 AM Message:
No lack of self-referential.
--199.192.xxx.xxx |
Money for kids? (by nhsailmaker [NH]) Posted on: Jan 17, 2021 9:39 AM Message:
I pay my grand kid teenagers $100 day - $50 half day
They also know that they can not get that rate anywhere so I pay a premium for my on-call workforce --73.61.xx.xx |
Money for kids? (by Marv [IL]) Posted on: Jan 17, 2021 10:56 AM Message:
Also check child labor laws. I think they are too young to work. --67.184.xxx.xxx |
Money for kids? (by ned [AL]) Posted on: Jan 17, 2021 11:26 AM Message:
Come on, Marv. --70.92.xxx.xxx |
Money for kids? (by Jkj [MA]) Posted on: Jan 17, 2021 12:36 PM Message:
My oldest daughter, she’s gonna be 9 gets $25 a week to take the trash to the curb, take in the barrels, feed the dogs, and help pick up their poop in the yard. If she was a little older and was helping me paint as you described I’d probably give her somewhere around $50 a day, --74.74.xxx.xx |
Money for kids? (by myob [GA]) Posted on: Jan 17, 2021 1:09 PM Message:
Very tough subject matter. You want to pay them so they understand the concept but not to much cause you want them to know what HARD EARNED MONEY IS.
My adult sons-- who started with me and had very little pay-- heck we didn't make much then-- I hope now I take care of very well. Anything they want or don't even need is theres.
Grand kids-- only 1 of working age and this summer I paid 20. Per hr to turn a few houses. He did great and my main man admitted he caught on quickly.
Both my grand kids have venom. Just recently they went to Colorado skiing and so we put 100.00 on each card for fun money. The one in college ever monday we put 100.00 on his card.
Painting a house is somewhat different and for someone 13 or 14-- well they may be good-- there not pro's. Pay her the 20.00 an hour but make a commitment that when your able-- you will put 20.00 more aside per hour for their future. AND STICK TO YOUR PROMISE. --99.103.xxx.xxx |
Money for kids? (by Shelby [IA]) Posted on: Jan 17, 2021 1:11 PM Message:
Wow you guys are expensive lol. I worked for my mom when I was younger cleaning houses and businesses. Cant remember what she paid me but it set me up to want to work at 13 and up. I was thinking $5/ hour or $100- $125 when all done. Minimum wage is $7.25. We also aren’t a rich state like CA and others. I don’t have much for properties so the $5k a year seems a little outrageous. (I pay into their savings as it is since they all were babies.) But appreciate all the opinions. I asked her and she said she hopes to earn $50. --50.82.xxx.xxx |
Money for kids? (by Ken [NY]) Posted on: Jan 17, 2021 1:24 PM Message:
I never paid my stepson to work around the house,that is part of being part of the family but i always paid him to work on my rentals,not the kids responsibility to provide for the family so i paid him a fair wage for his abilities,i did make him put some in a roth and now he adds to it on his own as an adult. --72.231.xxx.xxx |
Money for kids? (by Jkj [MA]) Posted on: Jan 17, 2021 1:26 PM Message:
Wow, minimum wage in MA is almost double that, it just went up to $13.50, but you can’t buy a house for less than $450K (in my area at least), so I guess it’s all relative. --74.74.xxx.xx |
Money for kids? (by Nicole [PA]) Posted on: Jan 17, 2021 1:43 PM Message:
I'm having trouble wrapping my pea brain around some of your thoughts.
You don't want to go broke. You are using a 12 year old to do a professional's job. This is taking two weeks. If money is the issue, then a professional would have it done in a few days and you'd have it listed so paying $5 or $6 an hour is actually costing you money.
If you are teaching her to work for money, that is different. I never gave young kids that age big projects like that. Kids and now grandkids have always had to work and have gotten paid. Bulletin board in my office has a job list and everyone has their own sheet. When they come in the door, they go first to the refrigerator for a once over and then to the jobs board. Even Christmas Eve I heard two of the older ones discussing the upcoming chores. --72.70.xxx.xxx |
Money for kids? (by plenty [MO]) Posted on: Jan 17, 2021 1:56 PM Message:
While you two are painting, I would take advantage of the audience being "trapped" in my presence and talk about cashflow and how the rental works and what it pays for and expenses and things you have learned. I would pay her $8 an hour and if she is ok with that and does a good job and doesn't whine and complain I would TIP HER a bonus for working fast and sticking with it. And I would tell her why she is getting a bonus. I would feed her lunch everything or treat special Ice cream runs. Anyway you may know what motivates her, so you be the best you are. --172.58.xx.xxx |
Money for kids? (by Shelby [IA]) Posted on: Jan 17, 2021 7:12 PM Message:
Yes Nicole I am teaching her about money. That is the whole point of it. I could have a friend paint with me or a professional paint but I’m hiring someone to upgrade the kitchen at same time, so we have time to do the job - my daughter and I. I’m not trying to get it done and advertised in 3 days or anything. Not this time.
Thanks Plenty that’s what I’ve been doing now that her and her 10 year old sister are slowly growing up, they are asking questions about rentals and learning a lot from what I tell them.
Yes Jkj, ours rents for $700 and only cost $30k. Not bad for a 3 bedroom.
I don’t give my kids allowance money but I pay them to rake leaves - stuff like that. I do all the household stuff . I only expect them to clean their rooms and occasionally unload the dishwasher. So bonus money for stuff like this is very rare.
Anyway, day 2 done, she did good. We are working again tomorrow then taking Tuesday off. Don’t want either of us to get burnt out too fast considering we have weeks to finish. --50.82.xxx.xxx |
Money for kids? (by Shelby [IA]) Posted on: Jan 17, 2021 7:12 PM Message:
Yes Nicole I am teaching her about money. That is the whole point of it. I could have a friend paint with me or a professional paint but I’m hiring someone to upgrade the kitchen at same time, so we have time to do the job - my daughter and I. I’m not trying to get it done and advertised in 3 days or anything. Not this time.
Thanks Plenty that’s what I’ve been doing now that her and her 10 year old sister are slowly growing up, they are asking questions about rentals and learning a lot from what I tell them.
Yes Jkj, ours rents for $700 and only cost $30k. Not bad for a 3 bedroom.
I don’t give my kids allowance money but I pay them to rake leaves - stuff like that. I do all the household stuff . I only expect them to clean their rooms and occasionally unload the dishwasher. So bonus money for stuff like this is very rare.
Anyway, day 2 done, she did good. We are working again tomorrow then taking Tuesday off. Don’t want either of us to get burnt out too fast considering we have weeks to finish. --50.82.xxx.xxx |
Money for kids? (by Homer [TX]) Posted on: Jan 17, 2021 7:51 PM Message:
The new minimum wage will be $15 per hour next week. I say you start there. --66.169.xxx.xxx |
Money for kids? (by gevans [SC]) Posted on: Jan 17, 2021 8:12 PM Message:
I think some of you guys are totally missing the point.
You can pay your children up to $12k per year TAX FREE for working in your business.
People: this is $12k per year you will not be paying taxes on. And you can use it for exactly the same things you are already using it for: kids clothes, food, entertainment, sports activities, college savings, Roth account, etc.
If you are in the 20% bracket that's $2,400 per kid you will save...and you will teach them to manage money at the same time if you do it right.
www.marketwatch.com/story/the-new-tax-law-makes-hiring-your-kid-a-better-idea-than-ever-2018-06-04#:~:text=Thanks%20to%20the%20Tax%20Cuts%20and%20Jobs%20Act,only%20$6,350,%20but%20the%20TCJA%20nearly%20doubled%20it. --69.80.xx.xx |
Money for kids? (by plenty [MO]) Posted on: Jan 17, 2021 8:59 PM Message:
Ive been known to buy a copy of Rich Dad Poor Dad book. The first book and put $100 in it with instructions as to use the $100 bill as a book marker while reading. Not to be spend until book is read. She'll learn alot from working and reading. I love the example on Soldiers goin to war, spending money and soldiers dying (may send some of you searching for your copy). Kids always get that one! I also play motional tapes... podcast nowadays... the big names Tony Robinson... self improvement. Planting seeds! --172.58.xx.xxx |
Money for kids? (by Dee Ann [WI]) Posted on: Jan 17, 2021 8:59 PM Message:
Paying up to $12,000/year, no taxes to you, will be alot cheaper than the kids paying inheritance taxes later on in life. And anything put into a Roth Ira over the years will not be taxed.
I don't have kids, but if I did I would do it as long as the law allows.
There may be other work arounds to avoid inheritance taxes, but this is an uncomplicated one that you don't have to pay a lawyer to draw up thus paying out for whatever kinds of trusts do that. And you can do it to get help from your children who may find themselves a full time or side vocation over the years. Not to mention something to put on a resume along with other things that take guts and brains. --75.11.xx.xx |
Money for kids? (by BRAD 20,000 [IN]) Posted on: Jan 18, 2021 2:14 AM Message:
plenty -LOVE IT!! $100 bill book mark! I paid mine $100 each to read certain books but a real $100 bill would have made it waay more fun!
PS They could buy their way out of grounding by reading one of my books.
Shelby,
My $400 per hour tax man says I can pay the normal rate I would have paid anyone to do that job. BUT...be reasonable.
12 year old babysitters in my city get $15 per hour.
I pay $100 per room for painting. Paint is paint no matter what age. (Paying by the piece is an even better business lesson than by the hour!)
Mowing was $30 per yard (with my mower).
I paid my teens the same rate as my adult workers because I could. The deal was 50% into savings (Roth), 10% to church, spend the rest. Even with this plan they made waay more than their friends who had jobs and paid FICA.
FYI Teens don't do odd jobs or part time anymore. Not cool and sports.
BRAD --73.102.xxx.xxx |
Money for kids? (by Shelby [IA]) Posted on: Jan 18, 2021 7:48 AM Message:
Brad, teenage babysitters in my town might get $3 an hour. What a difference when your state is so close... for reference a daycare facility here is $4.10/ hr or $3.75/ hr depending on age.
Plenty, cool idea. I have that book too. Right now they have no interest in real estate, but maybe someday. I mean, they ask questions but when I ask if they want rentals someday “no way!” Lol. --50.82.xxx.xxx |
Money for kids? (by MMIT [VA]) Posted on: Jan 18, 2021 9:14 AM Message:
When I started a business, I paid my kids to work in the business. Child labor laws did not apply to owners kids.
I paid them just enough cash to keep them from complaining and I fully funded their Roth. Any extra money went into their college fund.
The IRA has to be funded with "earned income". So, the kids had to be on the payroll and have taxes taken out of their paycheck.
When I started buying rental property, they also worked on the rental houses.
When they graduated from college, they were given the money that was left over in their college fund and their Roth IRA. This was the first time they saw the actual amount in the accounts.
Two kids used the left over college fund as down payments on their houses and the third kid used it to help fund med school.
By funding their Roth IRAs, they got a 10 year head start on building their retirement nest egg. The Roth IRAs will make them multi millionaires by the time they retire - if the tax laws don't change.
The kids are now in their 30's and are still fully funding their IRA's as well as other investments. --70.188.xx.xx |
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