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My children are 3 and 5 years old and they do administrative work once a week.
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I can just hear my mother and father belly laughing at the very notion.Įach family must decide on their own how to employ their children if a retirement account is a family goal but I do think that small regular work is a healthy precedent to set for children. I’ve not parented teenagers but I’ve been one and I would never have got away with laziness in my house and collected a paycheck.
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You could pay your newborn a “modeling” salary if you wanted to but teenagers? What does it teach a teenager to collect a paycheck for absolutely no work whatsoever? The guy on the podcast said that he couldn’t get his teenagers to do work so he came up with this hack. I am for that but Wow! How do you groom a 12 year-old to do this when most adults cannot!?!?īoth of my children have self-directed IRAs for work they do for our family’s real estate investing LLC. In order to have an IRA, one must have income. I’ve also read about a family whose 12 year-old does all the accounting and book keeping for their small business. I don’t think that this sends a good message. Their salary qualifies as income so that they can have IRAs. I’m not for that. Basically he pays them as if they were models and they do nothing in exchange.
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I once heard a guy on a podcast say that he pays his children a salary to use their likeness in his marketing materials.