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.

Most Read This Week

July 02, 2015 14389

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
July 02, 2015 6571

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
June 29, 2015 5069

UPDATE: Victim of Home Invasion/Homicide Died of…

by SurfKY News
June 29, 2015 3852

Accused Synthetic Marijuana Traffickers Appear in…

by Doreen Dennis, SurfKY News
June 28, 2015 3606

'Curb Service’ at Local Eatery Ends with DUI…

by Doreen Dennis, SurfKY News

Most Read This Month

June 24, 2015 45251

Western Kentucky, Southern Indiana's Largest…

by Doreen Dennis, SurfKY News
July 02, 2015 14389

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News

Stories Trending Now

July 02, 2015 14389

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
July 02, 2015 6571

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
July 01, 2015 2544

Crime Stoppers Top Most Wanted - July 2, 2015

by Crime Stoppers
July 03, 2015 2489

KMA Reminds Motorist of New Kentucky Red Light Law

by David Holt
July 02, 2015 1562

North Middle School Welcomes New Principal

by Julie Wischer
July 02, 2015 1334

Hanson Approves Budget on Second Reading

by Tammy Holloway, SurfKY News
July 02, 2015 1233

Hopkins County Health Department Food Scores Thru…

by Barry Franklin
July 02, 2015 1144

Madisonville Police Arrest Reports Released –…

by SurfKY News
July 03, 2015 957

Planning Commission Approves Re-zoning…

by Tammy Holloway, SurfKY News
July 03, 2015 869

UPDATE - Suspicious Package under Investigation

by SurfKY News