davesays300 greenKENTUCKY (3/31/13) - This week Dave discusses A model opportunity and Trusting in the family.

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
 
Dear Dave,
When should a couple think about creating a family trust? - Angie

Dear Angie,
A family trust can take different shapes. Couples with young kids sometimes consider creating a trust in the event that they both die unexpectedly. In these situations, a family trust would be managed for the care of minor children.

Some people also create trusts for the purpose of avoiding estate taxes. These trusts aren’t as common, because you don’t have to worry about estate tax problems unless you have assets in excess of $5 million, based on current law.

But to be honest, Angie, I can’t think of a situation where you’d want to create a family trust to manage money while you’re alive. Unless, of course, it contains some kind of estate planning implications. - 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 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
 

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

BMS Selects Academically Above and Beyond Recipient

BENTON, Ky. (8/31/15) — Each month the principal of Benton Middle School selects a student for the Academically Above… Read More

BMS Celebrate Students at CAP Assembly

BENTON, Ky. (8/31/15) — Every month, Benton Middle School celebrates outstanding achievement in academics with the CAP… Read More

Most Read This Week

August 24, 2015 11539

Teen Reports Slasher Attempted to Attack Him on…

by Doreen Dennis, SurfKY News
August 27, 2015 4771

All is Well after MNHHS Lockdown

by Doreen Dennis, SurfKY News
August 30, 2015 3596

UPDATED: 'He Fought the Law ... but, the Law Won'

by Doreen Dennis, SurfKY News
August 26, 2015 2780

Man Charged with Theft, Meth, Marijuana Growing

by SurfKY News
August 31, 2015 2453

Man Convicted of Hopkins Countian's Death Granted…

by Doreen Dennis, SurfKY News

Most Read This Month

August 06, 2015 17346

Muhlenberg Woman Reportedly Suffers Violent…

by SurfKY News
August 24, 2015 11539

Teen Reports Slasher Attempted to Attack Him on…

by Doreen Dennis, SurfKY News

Stories Trending Now

August 30, 2015 3596

UPDATED: 'He Fought the Law ... but, the Law Won'

by Doreen Dennis, SurfKY News
August 31, 2015 2453

Man Convicted of Hopkins Countian's Death Granted…

by Doreen Dennis, SurfKY News
August 30, 2015 1981

Happenings, Meetings Listed for Following Week

by Tammy Holloway, SurfKY News
August 30, 2015 1395

Smoke Fills Business, Upstairs Apartment on Center

by Doreen Dennis, SurfKY News
August 30, 2015 1390

Commission Recommends Zoning Changes at Mahr…

by Tammy Holloway, SurfKY News
August 30, 2015 1068

Fire at Gas Pump Prompts Firefighters Swift Action

by Doreen Dennis, SurfKY News
August 30, 2015 992

UofL Electrical Blast Treatment to Increase…

by SurfKY News
August 31, 2015 890

Bremen's Father's Country Hams Kentucky Grand…

by Tammy Holloway, SurfKY News
August 30, 2015 733

Dave Says - Aug. 30, 2015

by SurfKY News
August 30, 2015 713

Education Chief Reflects on Service

by KET