The Christian Broadcasting Network

Finance

Calculators: Credit Card Pay Off | College Savings


Dave Says

More Dave Ramsey articles

You can see all of Dave’s columns at www.davesays.org

Personal Finance

Finance

Dave Says: Managing Money for a Minor

By Dave Ramsey


CBN.com – These days it pays to be smart about money. That's why it's important to take this wise counsel from financial expert Dave Ramsey.

Managing Money for a Minor

Dear Dave,

My daughter is 14, and she was recently offered a steady weekend modeling job. Do you have any advice on how to handle the money she earns?

Cynthia

Dear Cynthia,

In terms of investing some of the money she'll make, a Roth IRA would be pretty cool. You would have to oversee it, of course, and you'd have to file a tax return, but starting something like this when she's 14 would help set her up for some serious money later.

I think the biggest thing, however, is to make sure you create lots of teachable moments for this young lady. There are three areas every child should learn about when it comes to finances: spending, saving and giving. If she's working and earning money, she should be able to spend a little and enjoy the fruits of her labors—within reason, of course.

Saving for the short term might include putting money aside for a car or even college. Long-term goals would include the Roth IRA, so she would have a head start on being able to retire with some dignity one day. Then you should always make sure to give some. Whether it's tithing to your church or finding other good causes, giving helps others and it's good for the giver. When we give, it helps us realize that we're not the center of the universe. It also makes us a little more Christlike.

This is a phenomenal opportunity for your daughter. It's also a great chance for you, as a parent, to involve her in the process and teach her important lessons that will last a lifetime!

—Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 5 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Log in or create an account to post a comment.  

  • Translate
  • Print Page


CBN IS HERE FOR YOU!
Are you seeking answers in life? Are you hurting?
Are you facing a difficult situation?

A caring friend will be there to pray with you in your time of need.

Become a CBN Partner and receive:
Living Under God's Blessing

CBN Partners are making a difference sharing the Gospel of Jesus Christ. Find out how...

Bring It On: Balance

What makes a DB(k) different from a 401(k) or regular pension plan? How can I assist my husband to get balance into his life?

Email iconSign up for E-mail Updates Full List

 E-mail: 
Do You Know Jesus
Grow In Your Faith

Need Prayer?

Call 1-800-823-6053
Email your prayer request