Hi Scott,
I’ve followed you for years and your tips helped me get debt free except the mortgage. My question: Should I ‘tax’ my seven-year-old when he works? We’re sorting out our garden area and my son wants to help earn money to buy an $85 toy. We agreed on rates: $1 per hole, 50c to plant and water each plant (about 40 going in), plus weekly watering fees.
I jokingly said I’d need a tax invoice. This led to a conversation about tax. I explained I’d take 20% tax and 10% super – so his earnings would be 30% less than expected. I’ll put that money into his bank account. Is this smart financial education? Or should I let him earn, save, and appreciate hard work – just stick with the three buckets?
Gary
Hi Gary,
You’ve totally overcooked it mate.
You have three goals with this:
First, to get him outside in the fresh air and away from screens.
Second, to show him that hard work pays off.
Third, to get a pay-off yourself: you’re creating happy memories that you can draw on when he becomes a scowling, grunting teen.
Go create those memories, Gary.
And when you two have finished a hard day’s work, take him out for a celebratory ice-cream.
And just as he’s unwrapping his Cornetto, I want you to snatch it and take a huge bite out of it.
Explain that it’s the ‘dad tax’.
