[quote=carlsbadworker]I think it is great. It certainly beats UGMA or 529. But I think you need to wait until they really start to earn their income. 1) It is really the right thing to do rather than lying to IRS 2) IRS could easily audit it if you claim that your two-year-old is making $5K a year.
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I agree with this completely. I think the trouble I have right now is that I’m mainly W2 right now, this isn’t going to happen overnight, since I need to figure out a purpose to create a company and actually well, earn money or at least break even.
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3) Teach kids about how to earn money (I don’t like monthly stipend, I want my kids learn how to earn money by meeting people’s need, rather than becoming an entitlement). So, maybe $1 for taking out trash daily, I haven’t thought through this yet. It will start with earning my money, but eventually earning money outside by looking for “work” opportunity (e.g. I can teach them writing codes and they can do freelancing).
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I’m trying to do this right now. Mixed results. 3rd/4th grader earns $2 for doing the dishes and emptying the trash into a bucket per week. Anything extra toy,craft,game,etc that the kid is responsible for using their own money. I have my kid record what goes into the piggie bank, what comes out, and when I forget to pay up, to send me note that I haven’t paid yet and am overdue. Mainly for the kid to start thinking about how much things cost, and what really is “necessary”. Doesn’t always work.
I’m in the process of explaining no you aren’t getting an iPhone even though some of your classmates have them already.
