{"id":834,"date":"2018-07-09T18:46:00","date_gmt":"2018-07-09T18:46:00","guid":{"rendered":"http:\/\/s876455381.onlinehome.us\/?p=834"},"modified":"2020-05-14T20:59:38","modified_gmt":"2020-05-14T20:59:38","slug":"financial-planning-tips-for-a-childs-summer-job","status":"publish","type":"post","link":"https:\/\/frischfinancial.com\/staging\/financial-planning-tips-for-a-childs-summer-job\/","title":{"rendered":"Financial Planning Tips for a Child\u2019s Summer Job"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]<\/p>\n

Smart Investment and Tax Advice for Your Teens<\/p>\n

<\/p>\n

<\/p>\n

\n<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

At the beginning of the summer, it seems like every kid is vying for a summer job. As a parent, this can be the perfect opportunity for a lesson about managing money. Teenagers can get experience with different jobs, learn about possible future careers and earn some money in the process.<\/p>\n

<\/p>\n

<\/p>\n

Saving for Big and Small Expenses<\/strong><\/p>\n

<\/p>\n

<\/p>\n

Encouraging your child to save a portion of their earnings is one learning tool. Learning the importance of saving will serve them well during their lifetimes. Whether they save for a certain purchase (i.e., concert tickets, new clothing, etc.) or for a longer-term goal (i.e., car, college, house, retirement), or even a little for each, the lessons learned at an early age will help them in the future. Ultimately if you can teach your children to make saving a habit, they will enjoy watching their funds grow.<\/p>\n

<\/p>\n

<\/p>\n

How to Invest<\/strong><\/p>\n

<\/p>\n

<\/p>\n

In addition, you can involve your child in the investment decisions of their savings. They can invest in cash, diversified exchange-traded funds (ETFs), mutual funds or even individual securities. This process can help you educate them on what will be incredibly helpful investment knowledge for their future.<\/p>\n

<\/p>\n

<\/p>\n

Saving for Retirement<\/strong><\/p>\n

<\/p>\n

<\/p>\n

You may want to consider establishing and funding a Roth IRA for your child. A Roth IRA contribution is allowed for the lesser of his or her earned income in 2018 or $5,500. Though a Roth IRA contribution is not a deduction (subtraction) on their tax return, the new tax law increased the standard deduction to $12,000 for single taxpayers, which means anyone with earnings less than $12,000 will pay zero federal income taxes.<\/p>\n

<\/p>\n

<\/p>\n

Remember, states have different thresholds and there can still be a state tax liability, even though there is no federal liability. There may be a federal tax on unearned income for dependent children which should be analyzed separately. Roth IRAs have additional benefits in that all appreciation within a Roth IRA account is never taxed, as long as certain criteria are met. There is great value in saving at a young age and allowing for compounded interest.<\/p>\n

<\/p>\n

<\/p>\n

An alternative to the Roth IRA would be the traditional IRA. The same amount can be funded as the Roth, but a child can earn up to $17,500, and avoid federal tax. The deadline to establish and fund an IRA is April 15th<\/sup> of the following year. We can assist you in determining which type of IRA contribution is optimal.<\/p>\n

<\/p>\n

<\/p>\n

Family Businesses<\/strong><\/p>\n

<\/p>\n

<\/p>\n

For parents that own their own businesses, they may consider hiring their children. If your child is under age 18 and you have a sole proprietorship or partnership in which each partner is a parent of the child, the child\u2019s wages are exempt from Social Security and Medicare taxes. Corporations have no special tax breaks for hiring children – for tax purposes they are treated the same as every employee.<\/p>\n

<\/p>\n

<\/p>\n

Income tax withholding is required of all employees, regardless of age. However, if your child earns less than the $12,000 standard deduction amount, there will be no federal tax due. Once your child begins working, they will be required to fill out Form W-4 so the appropriate amount of federal withholdings will be deducted from their pay.<\/p>\n

<\/p>\n

<\/p>\n

There are so many benefits to summer employment. I encourage you to help your children make the most of this experience to help set them on the path to making positive financial decisions during their lifetimes.<\/p>\n

<\/p>\n

<\/p>\n

If you have any questions, please\u00a0contact us<\/a>.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.4.3″ global_module=”4195″][et_pb_row _builder_version=”4.4.3″ background_color=”rgba(117,117,117,0.3)” custom_margin=”||||false|false” custom_padding=”||0px||false|false”][et_pb_column type=”4_4″ _builder_version=”4.4.3″][et_pb_text _builder_version=”4.4.3″ header_3_font=”|800|||||||” header_3_font_size=”25px”]<\/p>\n

\u00a0 \u00a0 \u00a0Our Locations<\/strong><\/h3>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_5,1_5,1_5,1_5,1_5″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”4.4.3″ background_color=”rgba(117,117,117,0.3)” custom_margin=”||||false|false” custom_padding=”|102px|||false|false”][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_image src=”https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2019\/12\/bottombrand.png” align=”center” _builder_version=”4.4.3″ transform_scale=”208%|208%” width=”100%” width_tablet=”35%” width_phone=”” width_last_edited=”on|tablet” module_alignment=”center” custom_margin=”|||0px|false|false” custom_margin_tablet=”|||32px|false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”0px|11px|25px||false|false” mix_blend_mode=”hard-light” module_alignment_tablet=”center” module_alignment_phone=”” module_alignment_last_edited=”on|phone”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″ text_orientation=”center” custom_margin=”|||-97px|false|false” custom_margin_tablet=”|||0px|false|false” custom_margin_phone=”|||0px|false|false” custom_margin_last_edited=”on|tablet”]<\/p>\n

445 Broad Hollow Road
<\/span>Suite 215<\/span>
Melville, NY 11747
<\/span>P: 516-694-7900
F: 516-694-7901<\/span><\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″ custom_margin=”|||-46px|false|false” custom_margin_tablet=”|||0px|false|false” custom_margin_phone=”|||0px|false|false” custom_margin_last_edited=”on|tablet”]<\/p>\n

1140 Avenue of the Americas
9th Floor
New York, NY 10036
P: 212-983-8444
F: 212-983-8151<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″]<\/p>\n

2202 N. West Shore Blvd
Suite 200
Tampa, FL 33607
P: 813-639-7580
F: 813-639-7501<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”3.26″][et_pb_text _builder_version=”4.4.3″ text_text_color=”#000000″]<\/p>\n

777 Westchester Ave
Suite 101
White Plains, NY 10604
P: 914-696-0800
F: 914-696-0808<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”] Smart Investment and Tax Advice for Your Teens At the beginning of the summer, it seems like every kid is vying for a summer job. As a parent, this can be the perfect opportunity for a lesson […]<\/p>\n","protected":false},"author":3,"featured_media":835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n

Smart Investment and Tax Advice for Your Teens<\/p>\n\n\n\n

\n\n\n\n

<\/p>\n\n\n\n

At the beginning of the summer, it seems like every kid is vying for a summer job. As a parent, this can be the perfect opportunity for a lesson about managing money. Teenagers can get experience with different jobs, learn about possible future careers and earn some money in the process.<\/p>\n\n\n\n

Saving for Big and Small Expenses<\/strong><\/p>\n\n\n\n

Encouraging your child to save a portion of their earnings is one learning tool. Learning the importance of saving will serve them well during their lifetimes. Whether they save for a certain purchase (i.e., concert tickets, new clothing, etc.) or for a longer-term goal (i.e., car, college, house, retirement), or even a little for each, the lessons learned at an early age will help them in the future. Ultimately if you can teach your children to make saving a habit, they will enjoy watching their funds grow.<\/p>\n\n\n\n

How to Invest<\/strong><\/p>\n\n\n\n

In addition, you can involve your child in the investment decisions of their savings. They can invest in cash, diversified exchange-traded funds (ETFs), mutual funds or even individual securities. This process can help you educate them on what will be incredibly helpful investment knowledge for their future.<\/p>\n\n\n\n

Saving for Retirement<\/strong><\/p>\n\n\n\n

You may want to consider establishing and funding a Roth IRA for your child. A Roth IRA contribution is allowed for the lesser of his or her earned income in 2018 or $5,500. Though a Roth IRA contribution is not a deduction (subtraction) on their tax return, the new tax law increased the standard deduction to $12,000 for single taxpayers, which means anyone with earnings less than $12,000 will pay zero federal income taxes.<\/p>\n\n\n\n

Remember, states have different thresholds and there can still be a state tax liability, even though there is no federal liability. There may be a federal tax on unearned income for dependent children which should be analyzed separately. Roth IRAs have additional benefits in that all appreciation within a Roth IRA account is never taxed, as long as certain criteria are met. There is great value in saving at a young age and allowing for compounded interest.<\/p>\n\n\n\n

An alternative to the Roth IRA would be the traditional IRA. The same amount can be funded as the Roth, but a child can earn up to $17,500, and avoid federal tax. The deadline to establish and fund an IRA is April 15th<\/sup> of the following year. We can assist you in determining which type of IRA contribution is optimal.<\/p>\n\n\n\n

Family Businesses<\/strong><\/p>\n\n\n\n

For parents that own their own businesses, they may consider hiring their children. If your child is under age 18 and you have a sole proprietorship or partnership in which each partner is a parent of the child, the child\u2019s wages are exempt from Social Security and Medicare taxes. Corporations have no special tax breaks for hiring children - for tax purposes they are treated the same as every employee.<\/p>\n\n\n\n

Income tax withholding is required of all employees, regardless of age. However, if your child earns less than the $12,000 standard deduction amount, there will be no federal tax due. Once your child begins working, they will be required to fill out Form W-4 so the appropriate amount of federal withholdings will be deducted from their pay.<\/p>\n\n\n\n

There are so many benefits to summer employment. I encourage you to help your children make the most of this experience to help set them on the path to making positive financial decisions during their lifetimes.<\/p>\n\n\n\n

If you have any questions, please\u00a0contact us<\/a>.<\/p>\n","_et_gb_content_width":""},"categories":[13],"tags":[],"yoast_head":"\nFinancial Planning Tips for a Child\u2019s Summer Job - Frisch Financial Group<\/title>\n<meta name=\"description\" content=\"Teenagers can get experience with different jobs, learn about possible future careers and earn some money in the process by doing some summer jobs.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/#organization\",\"name\":\"Frisch Financial Group\",\"url\":\"https:\/\/frischfinancial.com\/staging\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"\",\"contentUrl\":\"\",\"caption\":\"Frisch Financial Group\"},\"image\":{\"@id\":\"https:\/\/frischfinancial.com\/staging\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/#website\",\"url\":\"https:\/\/frischfinancial.com\/staging\/\",\"name\":\"Frisch Financial Group\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/frischfinancial.com\/staging\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/frischfinancial.com\/staging\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/financial-planning-tips-for-a-childs-summer-job\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2019\/07\/SummerJobBlog.jpg\",\"contentUrl\":\"https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2019\/07\/SummerJobBlog.jpg\",\"width\":750,\"height\":750,\"caption\":\"Two young men beach lifeguards watch people swimming in the blue ocean with waves crashing on a sandy beach. 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