What should my child spend their first paycheck on?
My child (17) has recently started their first job, working for the family business. I'm very proud of them for working hard and today gave them their first paycheck. They have had pocket money for sometime now (really just enough to go to the movies and buy video games now and then), but this is the largest amount of money they have received in a single sum.
I'd like them to spend the money on something they will remember. Obviously I can't decide for them, but could definitely make suggestions.
What should they buy with their first paycheck?
- Christin KLv 71 month ago
Do your child a BIG favor and teach them the 50-30-20 rule: 50 percent of your pay for NEEDS, 30 percent for WANTS and 20 percent to SAVINGS. If they learn this rule, they will always do well financially.
- something fishyLv 71 month ago
They should open a savings account and put half of every check in their.
They should be saving for a car, for insurance and for moving out at one point.
Overall saving would be key
- Anonymous1 month ago
Very unusual for you, a high school student to have a 17-year old son. Even stranger that there is no family business, according to you.
My suggestion? Have your pretend son use the money to hire a therapist for you.
- EvaLv 71 month ago
Teach them something more practical from the beginning. They should put at least half their check in a savings account. There is no reason for them to buy something they don't need with their first paycheck. The best gift you can give them is to teach them how to handle money and the difference between a need and a want. They will need budgeting skills all their life.
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- Anonymous1 month ago
Teach the kid how to SAVE, not blow the whole paycheck on something silly that they will probably forget all about in 5 years. Learning how to save is more valuable than the latest TV, smartphone, or silly trinket. I took myself out to dinner and a movie with my first paycheck, and pocketed the rest. After about 3 months, I treated myself to a new pair of really expensive shoes. It felt good that I could buy those on my own with my OWN money, but I had a good amount in the bank because I was taught to SAVE.
- JayLv 61 month ago
60% of the check should go into a savings account for the future...whether that is a house, a technical degree or a college degree.
20% should be set aside for special events ... like buying birthday and holiday
10% should be set aside for meals and entertainment
10% can be spent on whatever they want. I suggest 'Rick and Morty' merch...but that's just me.
- A HunchLv 71 month ago
Well you should always start with the savings, charity, bills, spending money format:
30% to savings
10% to charity
they don't have any bills, but you can talk to them about how quickly their money disappears when there is even only a cell phone
the remaining to whatever they want....