Author Topic: When a kid gets a pile of $$$  (Read 9272 times)

Cowardly Toaster

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When a kid gets a pile of $$$
« on: January 03, 2017, 06:04:11 PM »
A family friend's 16yo kid worked on a fishing boat in Alaska for a summer and earned a big pile of money, about $16k.

When he got back he wanted to buy a brand new snow machine (that's a snow mobile for you nonAlaska folks). His parents allowed him to do it even though they thought it was an unwise use of money. After all, he had earned the cash.

My wife and I were privately discussing what we would do if our son was in that position. Let them make a mistake and have youthful fun? Put your foot down? Tell them to save some and spend some? Or is too late to learn those lessons by age 16?

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Re: When a kid gets a pile of $$$
« Reply #1 on: January 04, 2017, 01:43:36 AM »
I think it depends on the kid, where their money management skills may be lacking, and what you want to teach.

If the kid will learn and internalize a valuable lesson through the purchase (drive snowmobile it off the lot and immediately lose X% of the value), letting him make the purchase serves a purpose (and prevents costlier waste in the future).

If you think the kid needs a framework, while a minor 50/50 save/spend rule (or 70/30 or whatever makes sense; if kiddo gets a pile of cash for his birthdays you could allow the first $X as spending money).  The lesson learned here may hit home later, when he can afford school without big loans, or to pay cash for a car, or make a house down payment.

Hopefully you are teaching financial lessons in everyday life, and not starting at 16.  But seeing as people find MMM in adulthood, middle age, or older and can make changes, 16 is definitely not too old to learn.

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Re: When a kid gets a pile of $$$
« Reply #2 on: January 04, 2017, 02:07:57 AM »
If he's sixteen and he's spent the summer on a fishing boat in Alaska, he has been doing a job which is about as seriously adult as it comes.   Advice might or might not be welcomed, but ultimatums seem like a very bad idea.

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Re: When a kid gets a pile of $$$
« Reply #3 on: January 04, 2017, 06:22:54 AM »
I know a lot of people have an X% has to go into savings rule, and that seems reasonable. But seriously- a 16 year old who spends a summer on a fishing boat has "earned" the right to blow his money if he wants. Kids are not adults; they don't have obligations to meet with their money. Especially if he did that without a "need to save for college" or "need to buy a car" in mind.

However, I could see not allowing a snow machine for a teen out of safety concerns. That is another reason it would be reasonable for a parent to put their foot down.  Kids don't get to do whatever they want just because they have the money.

Metric Mouse

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Re: When a kid gets a pile of $$$
« Reply #4 on: January 04, 2017, 07:34:46 AM »
Sounds like a great time to show the "Simple math of retirement' and get him saving! At his age I was working hard and saving every dime I could; I'm pretty greatful for it now.

radram

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Re: When a kid gets a pile of $$$
« Reply #5 on: January 04, 2017, 08:14:45 AM »
When he got back he wanted to buy a brand new snow machine (that's a snow mobile for you nonAlaska folks).

Good for the kid. Had a productive and profitable summer.

Snowmobile in WI. A snow machine is a machine that makes snow. Most common on ski hills to extend the downhill ski season. Also available at Wal-Mart:
https://www.walmart.com/ip/1-Liter-Snow-Machine/16829739

I agree with the you earn it you spend it comments, but I would strongly encourage frugality when looking for the sled (another name for snowmobiles in WI). I bet all your sleds have dogs attached :)
You can have a lot of fun with a late model sled found on craigslist, like this one for $1000.
https://racine.craigslist.org/snw/5920558743.html


I would also be willing to match the amount diverted to a ROTH to encourage saving for the future.



radram

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Re: When a kid gets a pile of $$$
« Reply #6 on: January 04, 2017, 08:19:09 AM »
When he got back he wanted to buy a brand new snow machine (that's a snow mobile for you nonAlaska folks).

Good for the kid. Had a productive and profitable summer.

Snowmobile in WI. A snow machine is a machine that makes snow. Most common on ski hills to extend the downhill ski season. Also available at Wal-Mart:
https://www.walmart.com/ip/1-Liter-Snow-Machine/16829739

I agree with the you earn it you spend it comments, but I would strongly encourage frugality when looking for the sled (another name for snowmobiles in WI). I bet all your sleds have dogs attached :)
You can have a lot of fun with a late model sled found on craigslist, like this one for $1000.
https://racine.craigslist.org/snw/5920558743.html


I would also be willing to match the amount diverted to a ROTH to encourage saving for the future.
Or this one near Anchorage:
https://anchorage.craigslist.org/snw/5900152513.html

Funny that this one did no come up when searching for snomobile and others did not show up when searching for snow machine.

Cowardly Toaster

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Re: When a kid gets a pile of $$$
« Reply #7 on: January 04, 2017, 09:30:27 AM »
Some good thoughts here.

Reading through the "Wall of Shame" one notices that antiMustachians aren't lazy as much as really bad with hard earned money. It seems like a kid like this who is obviously a hard worker might set himself up for a lifetime of working his tail off for money and then spending it fast.

Cowardly Toaster

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Re: When a kid gets a pile of $$$
« Reply #8 on: January 04, 2017, 09:34:24 AM »
Sounds like a great time to show the "Simple math of retirement' and get him saving! At his age I was working hard and saving every dime I could; I'm pretty greatful for it now.

That's my thought. While I haven't ever funded my lifestyle with debt, I have spent every dollar I've earned since I started working. If only I had been better at saving I would be well on my way now in my late 20s.

A dollar saved at age 16 could go a long ways towards a happy future.

Fishindude

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Re: When a kid gets a pile of $$$
« Reply #9 on: January 04, 2017, 09:34:29 AM »
That new snow machine might have been his entire motivation for busting his rear all summer.  A kid that worked that hard ought to be praised.
I wouldn't get in the way, but maybe offer suggestions to buy a late model used machine and keep a little of that money in reserve.  Ultimately let him make his own decision. 
« Last Edit: January 04, 2017, 09:36:28 AM by Fishindude »

Guesl982374

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Re: When a kid gets a pile of $$$
« Reply #10 on: January 04, 2017, 11:15:53 AM »
16 would be later than when I would want to start talking about the subject however I don't believe it is too late. I would frame saving & investing in terms of the wants/benefits to the 16 year old:

-lay out that they could be snowmobiling indefinitely by the time they are 30
-have him/her talk about the shitty parts of working (tough boss, tiring, long hours, whatever/etc)
-link higher education to value creation to higher income. Show that while he earned $16K over 2-3 months which is roughly $60-90K annualized which is outstanding for a 16 year old, there are easier ways to make money (mainly, having your money work for you or delivering value to others)
-show him what the average college student has in student loans and then show him how massive an advantage paying for school with cash can be
-etc.

Secretly Saving

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Re: When a kid gets a pile of $$$
« Reply #11 on: January 04, 2017, 11:37:12 AM »
If it were my kid, I'd require that he maxed out a Roth!

LiveLean

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Re: When a kid gets a pile of $$$
« Reply #12 on: January 04, 2017, 01:45:47 PM »
I'm actually surprised a kid would do this. I've never worked on a fishing boat in the Pacific NW, but people who have tell me it's dangerous, back-breaking work. I would think long and hard about spending money I worked so hard for on anything, let alone a rapidly-depreciating asset.

I mowed lawns as a kid and never made more than $3,000 a season (April/early October) in mid-1980s dollars, which I guess equates to $7K-$8K today. That's not nearly as tough as fishing boat work, but after all of that sweat and grass stains, I would not have blown it on anything. Then again, I had very Mustachian parents.

Metric Mouse

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Re: When a kid gets a pile of $$$
« Reply #13 on: January 05, 2017, 06:06:57 AM »
A dollar saved at age 16 could go a long ways towards a happy future.

I'm living proof of this. Compounding is real, and powerful.

Fishindude

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Re: When a kid gets a pile of $$$
« Reply #14 on: January 05, 2017, 06:45:41 AM »
If it were my kid, I'd require that he maxed out a Roth!
Seriously?  Does life really have to be that boring for a 16 year old?

I would encourage my kid to work hard to get what he wants and might even kick in a little financially towards so he didn't have to blow it all, it if I saw that he was really putting his nose to the grindstone and was serious about getting ahead.   This snow machine may be the start of great things.   Might have a real hard working entrepreneur here that is going to bust his rear end to get what he wants out of life.  We need more kids like this.

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Re: When a kid gets a pile of $$$
« Reply #15 on: January 05, 2017, 08:54:04 AM »
I'm actually surprised a kid would do this. I've never worked on a fishing boat in the Pacific NW, but people who have tell me it's dangerous, back-breaking work. I would think long and hard about spending money I worked so hard for on anything, let alone a rapidly-depreciating asset.

I mowed lawns as a kid and never made more than $3,000 a season (April/early October) in mid-1980s dollars, which I guess equates to $7K-$8K today. That's not nearly as tough as fishing boat work, but after all of that sweat and grass stains, I would not have blown it on anything. Then again, I had very Mustachian parents.

Some kids will ONLY do the work so that they can buy the expensive toy they were after; if he didn't want the snow machine, would he have spent his summer doing such hard work? Or would he have lounged around playing video games?

Which I think is a valuable lesson too. "I had to work my ass off to get this snow machine"  or "Remember that snow machine? Was that worth the summer on the boat?"

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Re: When a kid gets a pile of $$$
« Reply #16 on: January 05, 2017, 10:20:12 AM »
Great question, at what age is it appropriate to start controlling your own finances? When do parents become advisors instead of controllers (telling kids to save 50% is controlling, not necessarily a bad thing at all)?

At the age of 18 people are legally responsible for their own money, I became responsible at 17 when I rented my first apartment. At 16 I was responsible for my own car and job. I find it difficult to be a hypocrite, I was responsible for money at that age so I can't really fault the kid for a choice I would do differently but ultimately isn't mine to make. I would definitely advise my child, but then let them screw up, realistically its not that much money, its only 2-3 months work to replace. The kid will get the same next year and the year after, if he wants to work the next 2 summers (another $32k).

You can't force adults to spend according to your plan, at what age do you stop controlling your children?

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Re: When a kid gets a pile of $$$
« Reply #17 on: January 05, 2017, 10:53:50 AM »
I agree with the sentiment that you can't really "force" a 16-year-old to save their money or spend it a certain way.  Some thoughts I had on what you could do:

-incentivize saving in a Roth IRA or college account by offering some sort of match on money put into either option

-make sure the kid knows he will also be responsible for all ongoing snowmobile costs (gas? repairs? accessories/gear?), if parents have been funding other fun stuff (movie nights, etc), let kid know he is now on his own for those expenses.  While this might not stop him from buying the snowmobile, it would hopefully get him thinking about long-term costs and perhaps buying a cheaper option.

-lay out expectation that kid will not pursue snowmobiling to the exclusion of performing well in school--if GPA drops below X, snowmobile will be grounded until grades improve.  Similarly, if kid is going to also work during the school year to fund his snowmobile habit, make it clear that working will take second place to school performance (when I was in HS I had several friends who busted their asses at summer jobs working to buy cars...and then also had to work 15-20 hrs week during the school year to pay for gas and insurance.  Their grades and college prospects generally suffered as a result).

ketchup

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Re: When a kid gets a pile of $$$
« Reply #18 on: January 05, 2017, 11:03:29 AM »
Educate and allow him to make his own choices/mistakes.  Maybe lay out some "rules"/plans for future income.  You could do some sort of savings matching, like a 401k would.

But don't retroactively "require" something be done with money he's already earned.  My parents did something like that when I was about that age, and I'm still bitter about it.

caracarn

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Re: When a kid gets a pile of $$$
« Reply #19 on: January 05, 2017, 11:51:23 AM »
Great question, at what age is it appropriate to start controlling your own finances? When do parents become advisors instead of controllers (telling kids to save 50% is controlling, not necessarily a bad thing at all)?

At the age of 18 people are legally responsible for their own money, I became responsible at 17 when I rented my first apartment. At 16 I was responsible for my own car and job. I find it difficult to be a hypocrite, I was responsible for money at that age so I can't really fault the kid for a choice I would do differently but ultimately isn't mine to make. I would definitely advise my child, but then let them screw up, realistically its not that much money, its only 2-3 months work to replace. The kid will get the same next year and the year after, if he wants to work the next 2 summers (another $32k).

You can't force adults to spend according to your plan, at what age do you stop controlling your children?

Book titled "First National Bank of Dad".  Started teaching out kids about money at 3, and the money in the "bank" they were totally responsible for. 

hoping2retire35

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Re: When a kid gets a pile of $$$
« Reply #20 on: January 05, 2017, 12:57:52 PM »
Sounds like a great time to show the "Simple math of retirement' and get him saving! At his age I was working hard and saving every dime I could; I'm pretty greatful for it now.
Ah, another insight into how metric retired at 23...

Secretly Saving

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Re: When a kid gets a pile of $$$
« Reply #21 on: January 05, 2017, 01:27:49 PM »
If it were my kid, I'd require that he maxed out a Roth!
Seriously?  Does life really have to be that boring for a 16 year old?

I would encourage my kid to work hard to get what he wants and might even kick in a little financially towards so he didn't have to blow it all, it if I saw that he was really putting his nose to the grindstone and was serious about getting ahead.   This snow machine may be the start of great things.   Might have a real hard working entrepreneur here that is going to bust his rear end to get what he wants out of life.  We need more kids like this.

No, life doesn't have to be boring, especially because the kid in question would still have $10,000 left to play with even after they max out a Roth!  That said, I should have written that better.  I wouldn't "require" it, but I would strongly urge my kid to max out a Roth.  I feel so strongly about this that I would even consider an incentive like matching their Roth contribution.  I consider learning about the value of saving and the concept of money compounding over time to be part of a child's financial education.  Kid comes home with a big pile of money is a totally teachable moment!


BTDretire

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Re: When a kid gets a pile of $$$
« Reply #22 on: January 17, 2017, 07:26:46 AM »
I'm actually surprised a kid would do this. I've never worked on a fishing boat in the Pacific NW, but people who have tell me it's dangerous, back-breaking work.
I don't think it was explained, but it could have been a processing boat.
His job could have been packaging fish and putting it in a freezer,
and nothing to do with actual fishing, which is a dangerous job.

tooqk4u22

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Re: When a kid gets a pile of $$$
« Reply #23 on: January 18, 2017, 11:11:16 AM »
When I was 17 I put together a similar amount of money....then bought a jeep, a jet ski and a motorcycle in the span of a year. 

Are there days I think it was foolish...sure.  But I have far more memories of having a kick ass time with my friends for the years that followed.  Then one day I grew up and sold everything, finished college, worked hard and proceeded to get to where I am. 

One thing I never ever thought about was regretting buying those things...basically got it out of my system. 

Sure I would suggest that he save some of it but he's got to have some fun too.  And if he is up in Alaska I imagine he would get a lot of use out of a snow mobile...in many parts they are the primary mode of transportation once the snow falls. 

Cowardly Toaster

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Re: When a kid gets a pile of $$$
« Reply #24 on: January 18, 2017, 01:21:52 PM »
I'm actually surprised a kid would do this. I've never worked on a fishing boat in the Pacific NW, but people who have tell me it's dangerous, back-breaking work.
I don't think it was explained, but it could have been a processing boat.
His job could have been packaging fish and putting it in a freezer,
and nothing to do with actual fishing, which is a dangerous job.

Nope, it was the real deal, fishing on a salmon boat.

Money aside, it's awesome to see a kid like this who is a man at 16. Maybe some would say that's too young for dangerous work (the boat captain was a family friend, so the parents trusted him to take care of their son), but giving responsibility to teenagers really helps them grow up. I think many young people crave responsibility and we don't give them enough.
« Last Edit: January 18, 2017, 05:34:45 PM by thesvenster »

galliver

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Re: When a kid gets a pile of $$$
« Reply #25 on: January 18, 2017, 04:32:51 PM »
I think if advising your child is ineffective at that point, you won't make much of a difference in their long term habits by making them do one thing or the other...you'll just breed resentment and further distrust or antagonism at you. So with a teenager who earned the money, sit them down and talk about the possibilities, consequences of their spending plan, etc. But let them make their own decision. And optimally don't penalize them for working by taking something away you would otherwise pay for.

With a younger child earning large sums (like, thousands, through acting or if the wunderkind starts a business) I could see a mandatory saving amount being the only way to protect them from themselves, though if they work/save for a particular goal and it's not ongoing that's different, IMO.

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ltt

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Re: When a kid gets a pile of $$$
« Reply #26 on: January 18, 2017, 06:18:05 PM »
Sorry, but for that large amount, I would put my foot down.  I would pretty much expect them to save nearly all of it to use toward education.  If not going to college, they would be required to put it away for future housing.  I'd maybe let them spend $500-$1,000 and, most likely, it would be closer to the $500.


gimp

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Re: When a kid gets a pile of $$$
« Reply #27 on: January 18, 2017, 10:16:04 PM »
Someone working on a boat in Alaska, earning $16k, has done the work of an adult. They can make the mistakes of an adult. They can be talked to about their future, about wise spending, as an adult - but if you give them an ultimatum, it will not go well for you.


Metric Mouse

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Re: When a kid gets a pile of $$$
« Reply #28 on: January 18, 2017, 11:37:30 PM »
I'm actually surprised a kid would do this. I've never worked on a fishing boat in the Pacific NW, but people who have tell me it's dangerous, back-breaking work.
I don't think it was explained, but it could have been a processing boat.
His job could have been packaging fish and putting it in a freezer,
and nothing to do with actual fishing, which is a dangerous job.

Nope, it was the real deal, fishing on a salmon boat.

Money aside, it's awesome to see a kid like this who is a man at 16. Maybe some would say that's too young for dangerous work (the boat captain was a family friend, so the parents trusted him to take care of their son), but giving responsibility to teenagers really helps them grow up. I think many young people crave responsibility and we don't give them enough.

Good for the kid. One is always more likely to be successful when one is willing to work hard. And having a full-time summer job at 16 is going to look great on a resume, no matter where he ends up later.

mxt0133

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Re: When a kid gets a pile of $$$
« Reply #29 on: January 19, 2017, 12:17:34 AM »
I agree with the sentiment that if a child earned the money then they should have the ability to spend it as they choose, as long as it doesn't impact anyone else or endanger themselves or others.  The legal guardian of a child is responsible for the well being of said child and if something happened to the child or harms someone else then the guardian will be or can be held accountable.

This is basically what I tell my kids when they get money.  You can buy age appropriate things but you can't buy anything you want.  For example my son wanted to buy a knife with his money, that had to be vetoed because he could hurt himself or someone else.  If something where to happen and child services found out I let him buy a knife and hurt someone with it, they would take my child away and put me in jail.  Same thing with buying $50 worth of candy.  If he ate of off that candy his teeth would rot out and I would have to pay for dental work.  However, Nerf guns and other things that I don't necessarily agree with but don't pose any danger to himself or others I don't veto.

So if the kid has a place to put the snowmobile, can afford the appropriate insurance and doesn't intend to run over people with it, then he earned it fair and square.  I would still do my best to help him make the best purchase decision and discuss opportunity costs.  But in the end in this case I would let them make their own decisions and learn from them.  Better a $10K mistake than a $50K car in the future.

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Re: When a kid gets a pile of $$$
« Reply #30 on: January 19, 2017, 02:17:05 AM »
What we can do for teens is show them the results of early investing, as in this table -

http://www.daveramsey.com/blog/how-teens-can-become-millionaires

The sixteen year old on the fishing boat can have his snowmobile and also kick-start investing for retirement.

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Re: When a kid gets a pile of $$$
« Reply #31 on: January 19, 2017, 03:06:50 AM »
I got a bunch of cash (considerably less than $16k) when I was 16. My parents had a serious talk with me about my options and being responsible. They let me put it into their mortgage and paid me the interest they saved every month.

I used some of it responsibly, but the vast majority I drank away. If I'd chosen to have access to all the money I would have probably drank that away too. This would have been very bad for my health, finances and school.

As a sixteen year old I was an idiot, my parents really helped me out by giving me a little bit of freedom.

I'd suggest to the 16 year old that they put the money away (invest, savings account (do you have access to a decent interest rate savings account?)) and only touch the interest.

What we can do for teens is show them the results of early investing, as in this table -
http://www.daveramsey.com/blog/how-teens-can-become-millionaires

I'm calling bullshit on anything that talks about the miracle of compound interest with growth of 12% and no mention of inflation. The theory is fine, but 12% is bullshit.

former player

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Re: When a kid gets a pile of $$$
« Reply #32 on: January 19, 2017, 03:14:53 AM »
oops.  Should have checked my source instead of relying on the name.

Does MMM have something better?  Mostly what I found there is % of earnings stuff.

Metric Mouse

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Re: When a kid gets a pile of $$$
« Reply #33 on: January 19, 2017, 03:17:48 AM »
I got a bunch of cash (considerably less than $16k) when I was 16. My parents had a serious talk with me about my options and being responsible. They let me put it into their mortgage and paid me the interest they saved every month.

I used some of it responsibly, but the vast majority I drank away. If I'd chosen to have access to all the money I would have probably drank that away too. This would have been very bad for my health, finances and school.

As a sixteen year old I was an idiot, my parents really helped me out by giving me a little bit of freedom.

I'd suggest to the 16 year old that they put the money away (invest, savings account (do you have access to a decent interest rate savings account?)) and only touch the interest.

What we can do for teens is show them the results of early investing, as in this table -
http://www.daveramsey.com/blog/how-teens-can-become-millionaires

I'm calling bullshit on anything that talks about the miracle of compound interest with growth of 12% and no mention of inflation. The theory is fine, but 12% is bullshit.

The point is to show the power of compound interest, not claim that this result is typical.

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Re: When a kid gets a pile of $$$
« Reply #34 on: January 19, 2017, 04:10:09 AM »
To me it's a credibility thing. Growth and actual compound interest are good enough as they are. You don't need to be using 12% lies to show that they are good things.

It would be like me raving about the virtues of cashback credit cards by saying 'assuming I get 15% back on every purchase,' I can travel around the world forever. The poor assumption undermines my argument even if the basis of what I'm saying is reasonable.

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Re: When a kid gets a pile of $$$
« Reply #35 on: January 19, 2017, 04:28:27 AM »
If he's sixteen and he's spent the summer on a fishing boat in Alaska, he has been doing a job which is about as seriously adult as it comes.   Advice might or might not be welcomed, but ultimatums seem like a very bad idea.
+1

gimp

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Re: When a kid gets a pile of $$$
« Reply #36 on: January 19, 2017, 04:00:23 PM »
Quote
For example my son wanted to buy a knife with his money, that had to be vetoed because he could hurt himself or someone else.  If something where to happen and child services found out I let him buy a knife and hurt someone with it, they would take my child away and put me in jail.

I gotta know how old your kid is. This story could either be totally reasonable or hilariously overprotective, and I'm really curious.

tonysemail

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Re: When a kid gets a pile of $$$
« Reply #37 on: January 19, 2017, 04:10:27 PM »
I feel so strongly about this that I would even consider an incentive like matching their Roth contribution. 

me too.  It's such a good opportunity for tax free growth. 
I'd max out the roth ira for my kid.

gaja

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Re: When a kid gets a pile of $$$
« Reply #38 on: January 20, 2017, 05:52:18 PM »
Quote
For example my son wanted to buy a knife with his money, that had to be vetoed because he could hurt himself or someone else.  If something where to happen and child services found out I let him buy a knife and hurt someone with it, they would take my child away and put me in jail.

I gotta know how old your kid is. This story could either be totally reasonable or hilariously overprotective, and I'm really curious.

Yes, please explain at what age nerf guns are appropriate and knives are not. I think my kids learned to use knives in kindergarten around the age of 3, and I still don't allow toys shaped as weapons in our house (ages 9&10). This short video from Denmark is nice: https://m.youtube.com/watch?v=j_2NIhXrjIQ

As to the original question: he worked very hard, and if I was his parent I would explain what I would've done in his place, and left the decision entirely up to him. If he then blew it all on toys and regretted it afterwards, I would definitely tell him "told you so". He knows how to work, and can probably earn the same amount next year too. Making these mistakes at 16 is a very good idea, as long as you learn from them.

mxt0133

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Re: When a kid gets a pile of $$$
« Reply #39 on: January 22, 2017, 12:38:24 AM »
Quote
For example my son wanted to buy a knife with his money, that had to be vetoed because he could hurt himself or someone else.  If something where to happen and child services found out I let him buy a knife and hurt someone with it, they would take my child away and put me in jail.

I gotta know how old your kid is. This story could either be totally reasonable or hilariously overprotective, and I'm really curious.

He was 4 at the time.  One of the older kids got one and he was curious.  Even if he was older and wanted a weapon of some sort, it would depend in his maturity level, if he insists and buys it anyway it would not allow it to stored in my house where his younger sibling could get access to it.

We go camping so I was thinking of getting him one and teaching him how to use one for practical purposes.  It would be put way when we are not camping and not be carried around town.

EDIT:  Hit post by mistake.
« Last Edit: January 22, 2017, 12:42:00 AM by mxt0133 »

Bicycle_B

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Re: When a kid gets a pile of $$$
« Reply #40 on: January 22, 2017, 01:32:55 AM »
When he got back he wanted to buy a brand new snow machine (that's a snow mobile for you nonAlaska folks).

Good for the kid. Had a productive and profitable summer.

Snowmobile in WI. A snow machine is a machine that makes snow. Most common on ski hills to extend the downhill ski season. Also available at Wal-Mart:
https://www.walmart.com/ip/1-Liter-Snow-Machine/16829739

I agree with the you earn it you spend it comments, but I would strongly encourage frugality when looking for the sled (another name for snowmobiles in WI). I bet all your sleds have dogs attached :)
You can have a lot of fun with a late model sled found on craigslist, like this one for $1000.
https://racine.craigslist.org/snw/5920558743.html


I would also be willing to match the amount diverted to a ROTH to encourage saving for the future.

So he has $16,000 and wants a snow machine.  Which can be had for $1,000.  That's practically 4% (6.25%, but...close).  Why not point out the thrifty purchase can be done every year, and introduce him to FI through the concept of a permanent income stream?

Heck, if you buy it for $1,000 and sell it sometime for $400, it cost less than 4%!

mxt0133

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Re: When a kid gets a pile of $$$
« Reply #41 on: January 24, 2017, 09:40:27 PM »
Yes, please explain at what age nerf guns are appropriate and knives are not. I think my kids learned to use knives in kindergarten around the age of 3, and I still don't allow toys shaped as weapons in our house (ages 9&10). This short video from Denmark is nice: https://m.youtube.com/watch?v=j_2NIhXrjIQ

From a safety point of view Nerf guns that shoot the foam bullets after playing, I mean testing them for child safety myself we felt they were fine for my 5 year old.  The knife that he wanted was a hunting knife which was a 5'' blade was not appropriate for him as his intention was to carry it around and bring it to play dates.  So that purchase was vetoed because we did not feel he was ready to be responsible with a weapon that could hurt him or people around him.  We also have smaller children in the house and knowing how he just leaves things around on the floor it would be accessible by the smaller  kids.

He knows how to use kitchen knives when we are cooking and chopping up veggies and food but for day to day use on his person, he is not mature enough to be responsible for it.

Do your kids carry knives around during play dates then?

Metric Mouse

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Re: When a kid gets a pile of $$$
« Reply #42 on: January 24, 2017, 11:37:22 PM »

Do your kids carry knives around during play dates then?

Depends on the neighborhood the play date is in...

gaja

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Re: When a kid gets a pile of $$$
« Reply #43 on: January 25, 2017, 07:04:23 AM »
If my kids, or anyone around them, saw knives as weapons, we would probably look differently on this. But for us, knives are tools. If I remember correctly, the kids got their first personal knives around the age of 4-5, as gifts from the grandfather. These were nice and sharp, and a good size for their hands: http://www.fjelltind.no.24nb6.srv.ip.no/produkt/kniver/speiderkniver/helle-speiderkniv-jente First they could only use them under supervision, but they were less than six years old when they would bring their knives outside in the garden to do small projects, without our watchful eyes. We lived in a street where the kids could safely visit each other or play areas without adult intervention, so yes; they brought their knives to the playground (/forest) while playing with other kids.

My kids are very rule oriented, so they have never been close to hurting other people while whittling. Sure, they needed some bandaids now and then, but there were no lasting damages. They also had free access to hammers, nails, saws and other tools. The axes were only used under supervision.

SwordGuy

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Re: When a kid gets a pile of $$$
« Reply #44 on: February 06, 2017, 08:13:17 PM »
[quote author=thesvenster link=topic=66412.msg1388614#msg1388614  but giving responsibility to teenagers really helps them grow up. I think many young people crave responsibility and we don't give them enough.
[/quote]

Very true!