TankTop
Pearl Clutcher
Refupea #1,871
Posts: 4,775
Location: On the couch...
Jun 28, 2014 1:52:46 GMT
|
Post by TankTop on May 15, 2016 14:24:44 GMT
Dd 16 lucked into a killer job. She works two days a week for a total of 11ish hours. She makes $8.25/hour plus tips. The tips she makes are unbelievable. Like crazy good. This is a TON of money for a teen. Heck, it's a ton of money for anyone.
She is currently responsible for her $120./month car insurance. This seems like a lot, but it is actually less than what she makes a week with pay + tips.
We need to set some guidelines for saving and spending to help set her on the right path.
Any suggestions?
|
|
|
Post by Merge on May 15, 2016 14:27:57 GMT
Whaaaat is she doing to earn those kinds of tips? LOL
If mine were making that kind of money, I'd help them open a savings account and start saving maybe 20% of what they earn. And then they could fund their own "fun" items like makeup, going out with friends, clothes over and above what they need, etc.
|
|
|
Post by boatymcboatface on May 15, 2016 14:28:18 GMT
Our guideline was spend give save. Ratio depends on the situation. We matched what they saved for a car and they paid gas and insurance. We bought some clothes and they bought some. Entertainment and food that wasn't family meal whether in/out was on them. They could choose their charity to give to based on what they were interested in and no your favorite charity cannot be yourself
|
|
hannahruth
Pearl Clutcher
Posts: 2,616
Location: Adelaide, Australia
Aug 29, 2014 18:57:20 GMT
|
Post by hannahruth on May 15, 2016 14:44:06 GMT
When our DS got his first job which was Thursday night and weekends as he was still at school he had to put petrol in his car (which we had bought him) and the rest was his.
When he started at university and worked more hours as his contact time was much less than school and by his choice he paid for himself from then on. Phone, car insurance, all Uni costs. We did not expect him to pay any board, he was still covered under our health insurance plan and we paid for items that were bought as groceries like shampoo, deodorant etc and we fed and pretty much clothed him unless he wanted to buy something in particular then he paid.
He was also a very good saver. He stayed at the same company for seven years from school until he graduated from uni and then he moved interstate to a job in his chosen field.
|
|
paget
Drama Llama
Posts: 6,751
Jun 25, 2014 21:16:39 GMT
|
Post by paget on May 15, 2016 14:53:52 GMT
16 year old dd has been babysitting a lot this year and has saved most of it. She uses some of it for eating out and going out with friends. She starts a "real job" Today making $11.50 per hour. Based on how she has handled her babysitting money and her goals I won't input anything about how the money should be spent. I know she is will be saving over 98% of it. She is very frugal with HER money! We pay her car, insurance, and gas. She's on dance team and goes so many places for practices and leadership meetings, etc the car is really for us rather than her so we don't have to drive her anywhere! We also pay her cell phone. I think it's fine for families to have a Working teen contribute but we won't be doing that. She is contributing by saving her money to use as spending money and living expense money in college.
|
|
|
Post by Jockscrap on May 15, 2016 14:58:33 GMT
My DS has earned good money for his age for the past couple of years. He doesn't have a car and uses ours a little for free, but pays his monthly phone cost, Netflix subscription and Spotify subscription. He finances his social life and buys some of his clothes. He is a very good saver, so the majority of his wages are building up in savings accounts. As he is at college and living at home, we pay him an allowance for lunches and transport, as we have paid for his sister to be away from home at uni. If he squandered his money, we would maybe expect him to pay for more, but at the moment I'm happy to see him work hard and save hard and it is a good opportunity for him to build up funds behind him while he can, to hopefully enable him to get his own place when he is ready.
|
|
|
Post by threegirls on May 15, 2016 15:21:02 GMT
Maybe help her come up with some near term and long term financial goals.
My parents informed me that when I got to college I would be responsible for all of my books, lab fees, entertainment, etc. They also discouraged me from working during my Freshman year of college. So, I got a job when I was 16 and saved for my future college expenses. I was able to pay for the books, etc. and not work Freshman year.
|
|
Deleted
Posts: 0
May 17, 2024 22:03:57 GMT
|
Post by Deleted on May 15, 2016 15:27:35 GMT
My thirteen year old works and uses his money for his phone and going out to eat w friends. And he pays for his Six Flags season pass.
|
|
|
Post by cadoodlebug on May 15, 2016 15:37:29 GMT
DS got a job right after high school graduation paying $10 an hour. He actually kept it part-time all through college and 2 years after he got his degree until he could find his first job in accounting. (They also gave him full medical/dental benefits which was huge as well as raises along the way.) The first thing I pounded into his head was opening a Roth IRA. So he has funded one for the full amount ever since. We paid for his college (he lived at home and commuted to Cal State) so he would be debt-free when he graduated and could save every penny to buy a house. He's 30 now and owns a townhouse in the next town over. Otherwise he would never be able to afford anything in this area. Luckily he saved enough that he didn't have to touch his Roth IRA.
That's a long-winded way of saying we preached saving, saving, saving.
|
|
|
Post by myshelly on May 15, 2016 15:44:07 GMT
I think I would give my teen a chance to handle his own money first before I stepped in and made any rules. This is a learning experience for him. I wouldn't limit the experience by imposing rules before I see whether he needs them or not.
|
|
|
Post by giatocj on May 15, 2016 15:45:40 GMT
Ours will be giving me $ 5 a week to open a long term savings account for him, $ 5 for charity and the rest will be divided for music and car expenses and spending. He's making $10 an hour and $15 an hour on Sundays, so he'll make some decent money.
|
|
|
Post by cindyupnorth on May 15, 2016 16:05:45 GMT
I would sit down and talk to her about what she wants to do with the money. Does she plan on going to college? does she want to save up for something? or go somewhere? etc. My girls both had jobs, and they ea had a certain thing they wanted to save up for..ie new phone, etc. After the made enough for that they saved the rest of the money towards college extra stuff, like going out, gas, groceries, etc while gone from home. It worked out well. One is a saver and one not so much. I think it's our duty as a parent to sit down and talk to them about finances, saving, etc. vs have them figure it out on their own. Isn't that our job?
|
|
|
Post by kels99 on May 15, 2016 16:24:15 GMT
Both my kids (16 & 14) are savers, so have a decent amount in their savings account. 16 year old just got her first real job and designated the automatic deposit to be 70% into savings account and 30% into her checking. Now that she's driving, she'll be responsible for gas to anywhere other than school. And she's been going out with friends more lately and is paying for that, of course.
I've thought about having her set up a retirement account. How wonderful it would be to get her in the habit of funding it so early in life!
|
|
perumbula
Pearl Clutcher
Posts: 3,439
Location: Idaho
Jun 26, 2014 18:51:17 GMT
|
Post by perumbula on May 15, 2016 16:26:17 GMT
Our household guidelines are: 50% long term savings, 10% charity, 20% short term savings, 20% fun money. it worked well for my oldest two. Middle girl is going to be looking for her first job this summer. we'll see how it goes with her.
|
|
gsquaredmom
Pearl Clutcher
Posts: 4,078
Jun 26, 2014 17:43:22 GMT
|
Post by gsquaredmom on May 15, 2016 16:26:45 GMT
My son is investing to take advantage of time. There is something called Acorns that he started with and he is now trying to figure out how to get into stocks as a small investor.
|
|
psiluvu
Pearl Clutcher
Posts: 3,217
Location: Canada's Capital
Jun 25, 2014 22:52:26 GMT
|
Post by psiluvu on May 15, 2016 16:30:26 GMT
My DD 16 also has a job with killer tips. She is a party hostess at a bowling alley, just yesterday she got a promotion to scheduling coordinator and now makes $12.00 an hour with tips. She banks her cheque and spends her tips on expensive makeup, clothes and gel nails. It is slow there in the summer so she she is a camp counsellor in the summer making $500.00 a week clear for 7 weeks. Long story short she has banked $5,300.00 for university in a little over a year so I haven't given her any rules.
DS 13 time keeps for girls hockey and just started umpiring little league. He is saving for a PS4 after that I may have to get him to bank half and spend half or he may spend it all on eating out.
|
|
|
Post by cmpeter on May 15, 2016 16:42:49 GMT
I'll ditto the savings recommendations. Ds contributes to his 401K plan. This is his first job that pays more than "fun money" wages.
Other than that he covers his car payments and fun stuff.
|
|
iowgirl
Pearl Clutcher
Posts: 4,134
Jun 25, 2014 22:52:46 GMT
|
Post by iowgirl on May 15, 2016 16:47:22 GMT
She is currently responsible for her $120./month car insurance. This seems like a lot, but it is actually less than what she makes a week with pay + tips. Congrats on the great job - but why is her car insurance $1400/year! Holy cow! That's expensive.
|
|
|
Post by crazy4scraps on May 15, 2016 16:53:08 GMT
Some good friends of ours handled it this way. As soon as their kids had a steady part time job, they had the kid hand over half of their take home pay from every paycheck which the kids assumed was going toward offsetting some of the family expenses for extra things they enjoyed, like cable TV, vacations, etc. The kids were also encouraged to save some of what was left and give some to charity as well. This went on for years.
When the older kid was ready to buy a house, our friends surprised her by giving back all of the money she had handed over to them over the course of all those years--plus interest and/or dividends! She was able to put down a sizable chunk of money on the house she wanted, and started out home ownership with a good amount of instant equity. When their son got married a few years later, they did the same thing for him too. I'm fairly certain that neither of them would have been able to save that much on their own at that age.
|
|
|
Post by pretzels on May 15, 2016 17:02:34 GMT
My DS16 has a job at our local grocery store. He works 15-20 hours a week. H and I get paid 2x a month. On our paydays, I put $30 in DS's account for gas money. He takes his younger sister to school five days a week and picks her up from their grandparents' house, so we pay for gas. I put lunch money in his lunch account at school. His money from his job is for his "fun" stuff...going places with his friends, buying records, etc. He doesn't make enough every week to pay for substantial things, but we were getting nickeled and dimed a lot before.
|
|
|
Post by pretzels on May 15, 2016 17:03:48 GMT
She is currently responsible for her $120./month car insurance. This seems like a lot, but it is actually less than what she makes a week with pay + tips. Congrats on the great job - but why is her car insurance $1400/year! Holy cow! That's expensive. Ha! I won't tell you how much we pay for our DS16's car insurance. It's just liability on a 2006 Honda Accord. (Hint: MUCH more than that.)
|
|
TankTop
Pearl Clutcher
Refupea #1,871
Posts: 4,775
Location: On the couch...
Jun 28, 2014 1:52:46 GMT
|
Post by TankTop on May 15, 2016 17:07:13 GMT
Whaaaat is she doing to earn those kinds of tips? LOL If mine were making that kind of money, I'd help them open a savings account and start saving maybe 20% of what they earn. And then they could fund their own "fun" items like makeup, going out with friends, clothes over and above what they need, etc. She is working at a very popular local restaurant. People come from all over to eat there. They are busy with lines out the door from open to close. They serve no alcohol, so she waits tables.
|
|
TankTop
Pearl Clutcher
Refupea #1,871
Posts: 4,775
Location: On the couch...
Jun 28, 2014 1:52:46 GMT
|
Post by TankTop on May 15, 2016 17:09:29 GMT
Thank you all.
I think we will tak to her about percentages and maybe even starting some kind of investment account.
|
|
|
Post by bc2ca on May 15, 2016 17:12:49 GMT
I think I would give my teen a chance to handle his own money first before I stepped in and made any rules. This is a learning experience for him. I wouldn't limit the experience by imposing rules before I see whether he needs them or not. This is really the approach we took with DD. DH and I have modeled saving, investing and giving and gave DD a chance to figure it out. DD had a bank account and debit card before she started working and has handled her own money, depositing checks and paying for anything not related to school. When she first started working she would go buy her lunch or dinner and quickly learned that it was much less expensive to bring food from home. She saved everything until she had twice what she needed to buy a Macbook (she didn't want to buy it and be left with nothing in the bank). DH and I were willing to buy the Macbook for her because we saw it as a reasonable school expense, or at least pay half, but she took a lot of pride in buying it for herself. DD also got a credit card when she turned 18. She and I go over it every month because there are some expenses I pay for (books, some gas) that get charged. I've never reminded her to take care of this or make the payment. Her Econ teacher in high school did a great job drilling into the kids the consequences of credit card debt.
|
|
|
Post by padresfan619 on May 15, 2016 17:14:31 GMT
I think it is important to set up realistic savings goals, especially as a teen when there is a lot more leeway and less bills they have to pay. Paying for car insurance is a great way to set up the example of paying for bills before the fun stuff can start. If direct deposit is an option I would encourage having a percentage automatically deposited into a savings account every pay period so they don't even have to think about it. If direct deposit isn't an option, I would set up automatic transfers from checking into savings on a monthly basis.
Also do not sign her up for overdraft protection. Make the card decline a sale if there isn't enough money in the account instead of being charged $35 for every purchase. With fraud as rampant as it is, it only takes a few seconds to have an entire account wiped out.
I would also take this opportunity to illustrate the actual cost of having a credit card. Once your child turns 18 they will be inundated with credit card offers and student loan applications. Take this time to show how much more they will be paying on that loan over time if they decide to make minimum payments vs saving their cash to pay for school directly. When I graduated high school I knew I had enough money to pay my way through an associates degree at community college and enough money from my parents and grandparents to finish out my bachelors. Now, in my late 20s, I see my peers struggle with student loan debt, on top of credit card debt, while I am debt free besides my mortgage payment. I owe that completely to my algebra 2 teacher who taught us the formula to figure out interest rates.
I made a sacrifice by going to CC, but in the end it made a huge difference in my financial future.
|
|
|
Post by Delta Dawn on May 15, 2016 17:16:32 GMT
I use a planner or my phone to log all my purchases to see where my money has gone every month. You could have her log everything like I do. I log my Starbucks coffees, my gas purchases, even Chapstick if I buy it. At the end of the month I see how much I spent and where it all went. That is what works for me.
I don't know what my son does and I haven't really asked him about it. He buys things like PlayStations, modifications for his car, gas, video games, hair cuts (he gets his hair done at a fancy place), his expensive jeans. He buys his restaurant food and entertainment every month and that's about it. He sees all the movies he wants to see so i would say maybe 3 or 4 a year.
ETA Ok I asked him and he pays with plastic for everything and sees his statement at the end of the month.
Getting her set up with an investment account is a great idea!
|
|
|
Post by crazy4scraps on May 15, 2016 17:18:53 GMT
Our household guidelines are: 50% long term savings, 10% charity, 20% short term savings, 20% fun money. it worked well for my oldest two. Middle girl is going to be looking for her first job this summer. we'll see how it goes with her. I think this sounds like a solid plan. The problem with so many teens (DH and myself included when we were that age) is that a lot of the money they spend on the fun stuff is spent on stupid things that rapidly decrease in value. I hope to do a better job of teaching my kid to really think about the things she spends her disposable income on and to get the most bang for her buck and to learn how to make informed purchasing decisions. For example, making a pizza at home vs. going to a fast food place or seeing a designer look you like and figuring out how to get that same look for less. Or saving up to buy something of a better quality and then taking care of it so it lasts the longest time possible. The sooner kids learn these lessons, the easier it will be for them to be informed consumers as adults with more money in the bank as a result. I also think learning to have delayed gratification and to wait and work for what they really want is another thing that really serves kids well in many aspects of life long into adulthood.
|
|
|
Post by *leslie* on May 15, 2016 17:19:34 GMT
We pay for the car insurance for our son. He helps us out so much driving the other two kids where they need to go without any complaint. He has a job but it's only 1 day a week and really not enough make him pay for things.
|
|
Deleted
Posts: 0
May 17, 2024 22:03:57 GMT
|
Post by Deleted on May 15, 2016 17:48:10 GMT
I think I would give my teen a chance to handle his own money first before I stepped in and made any rules. This is a learning experience for him. I wouldn't limit the experience by imposing rules before I see whether he needs them or not. Are you assuming the teen has financial skills to implement already? His parents could help him learn initially by engaging in a convo and then let him have some reins with his learned info. Hard to know what 16 year olds know about money I guess.
|
|
|
Post by myshelly on May 15, 2016 17:52:28 GMT
I think I would give my teen a chance to handle his own money first before I stepped in and made any rules. This is a learning experience for him. I wouldn't limit the experience by imposing rules before I see whether he needs them or not. Are you assuming the teen has financial skills to implement already? His parents could help him learn initially by engaging in a convo and then let him have some reins with his learned info. Hard to know what 16 year olds know about money I guess. Yes, IMO, by the time you are a teenager you should already have some knowledge and experience with money. I just don't think that a teen is *learning* anything by having his parents dictate how he can/should spend his money. I don't think following strict orders without choice is how one learns.
|
|