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.

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.

Posted on 2/2/14
3/13 - 16
3/13 - 16

Most Read This Week

April 17, 2015 8872

An Open Letter from an Addict

by Olivia Kirks
April 13, 2015 6318

Three Juveniles, Adult Accused of Vandalizing…

by Deputy Will Coursey
April 14, 2015 5442

Several Juveniles Charged in Connection with Fight

by SurfKY News
April 18, 2015 5223

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 16, 2015 3518

Crime Stoppers Fugitive of the Week – April 16,…

by Hopkinsville – Christian County Crime Stoppers

Most Read This Month

April 17, 2015 8872

An Open Letter from an Addict

by Olivia Kirks
April 02, 2015 8557

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 20, 2015 3061

Nortonville Woman Charged with Meth Possession at…

by Madisonville Police Department
April 19, 2015 2363

ATV Ride, Cookout Raises Funds for Shanice Bean…

by Tammy Holloway, SurfKY News
April 19, 2015 1212

Tru Blue BBQ Wins Earlington Downtown Showdown BBQ

by Tammy Holloway, SurfKY News
April 20, 2015 1060

Madisonville Man Charged with Sex Abuse of Two…

by SurfKY News
April 18, 2015 955

Home, Garden Show Concludes Today at Ballard…

by Tammy Holloway, SurfKY News
April 20, 2015 866

Traffic Stop Results in DUI, Drug Possession,…

by SurfKY News
April 20, 2015 846

Pick Greenville's 'Saturdays on the Square' Free…

by Beth Newman
April 19, 2015 844

Children Thrilled with Superhero Pancake Breakfast

by Tammy Holloway, SurfKY News
April 19, 2015 793

Gov. Beshear Orders Flags to Half-Staff on April…

by Office of the Governor
April 19, 2015 640

KET Documentary Follows UK Doctor's Work Helping…

by Elizabeth Adams