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does your kids save any money ? my younger daughter made...

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Dancing Fire

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$8000 working part time while going to school in 08.

two years ago i opened an Roth IRA account for her with $2000. i told her...next yr i''ll match whatever you contribute into your Roth.In 07 she saved $2000 and as i promised i contributed $2k into her Roth $4k was the max amount b/c she only had $4k income for 07. then two days ago her mom ask her...how much have you save for your 08 Roth IRA? daughter said... i have < $200 in my savings account
she made $8k in 08 and only have $200 in saving?


well... guess i won''t be contributing into her Roth for 08.
i''m really piss b/c i was hoping she would save $2500 and i would then match her $2500 so she can max out her Roth at $5K. oh well...it is her lost.


LUNCH TIME!!
 

Italiahaircolor

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My first question would be how old is your younger daughter? From my own personal experience age has a lot to do with the concept of money...
 

Sabine

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Didn''t you post before about paying your daughter''s credit card bills? If you are doing that plus supplementing her savings, you are really teaching her to be dependent on you for money!
 

chrono

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His daughters are teenagers. Maybe 18 or so, if I recall correctly. Maybe 20 and 21?

I've started making my children save too. They are really young so they are just saving up some pocket change.
 

Kaleigh

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Yes DD saves most of what she makes. But she''s been like that since day one. My son?? Not so much....
 

JSM

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Well... honestly, I used to be terrible with money. I worked throughout college and anything I had left over after tuition bills and food I spent.

It wasn''t until I graduated college, moved out of state and went to grad school that I REALLY learned the concept of money. Age DOES have a lot to do with it, as does whether or not you are paying your own bills!

If your daughter is a teenager and she''s living under your roof (and/or you are paying the bills), I''d say it''s probably fairly normal that she hasn''t saved!
 

lyra

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One saves, one spends, both work part time. We do not supplement, they don''t get allowances or other expenses other than school related. We don''t buy them clothes. This doesn''t mean we don''t spend money on them, just that they know they can''t count on it. They are 18 and 21. They need to learn to live within *their* means, not *ours*.
 

musey

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By your age standards I am a "kid" DFire, and yes, I save
as much as I can. I've always put most of what I make into savings so I've never had a set "you must put ___% into savings from each paycheck" kinda deal.

I didn't start doing this until after I graduated college, though. In college, I pretty much spent what I made because I had a good safety net.
 

Dancing Fire

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Date: 2/3/2009 3:10:39 PM
Author: Sabine
Didn''t you post before about paying your daughter''s credit card bills? If you are doing that plus supplementing her savings, you are really teaching her to be dependent on you for money!
yeah, that was the older one she is 22 1/2 yrs old. this is the younger one she will be 21 in March.
 

AmberGretchen

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I''ve always tried to save something, but I think that you are right that this is your daughter''s loss - sounds like she could do with some sessions with a financial planner to me...
 

Dancing Fire

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Date: 2/3/2009 3:46:38 PM
Author: jsm
If your daughter is a teenager and she''s living under your roof (and/or you are paying the bills), I''d say it''s probably fairly normal that she hasn''t saved!
why? and yes she''s living under my roof. that''s the reason why i expected her to have some savings,cuz she have no bills.
 

Haven

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Wow, she is really passing up a wonderful opportunity, DFire.

I have a younger sister who graduated college in May and she''ll have saved over $15,000 in her first year out of school because she''s living at home with our mom.

I think kids have to be taught how to manage their money by their parents or older siblings. Otherwise, they may end up like all of these debt-laden Americans by the time they''re 25.
 

Dancing Fire

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Date: 2/3/2009 6:25:23 PM
Author: AmberGretchen
I''ve always tried to save something, but I think that you are right that this is your daughter''s loss - sounds like she could do with some sessions with a financial planner to me...
i''ve talk to her about putting money into her Roth every yr ,b/c it is nontaxable in the future when she''s eligible to withdrawl.
 

Kaleigh

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Date: 2/3/2009 6:29:51 PM
Author: Dancing Fire


Date: 2/3/2009 3:46:38 PM
Author: jsm
If your daughter is a teenager and she's living under your roof (and/or you are paying the bills), I'd say it's probably fairly normal that she hasn't saved!
why? and yes she's living under my roof. that's the reason why i expected her to have some savings,cuz she have no bills.
You have to teach her, lay down ground rules....[;-)

Remind me to do that with DS! He makes an insane amount caddying on Nantucket, $150 is an average day. I know crazy. He caddy's for the Chairman of NBC for heavens sakes. This summer he is going to save every penny. He has to to save for college. He'll be a freshman next fall. We will not be paying for the extras.
He is in boarding school, so has learned how to have a checkbook and to manage his money.
He still has a lot to learn.
You'd love him DF, He's a true Republican!!!
 

Elmorton

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Date: 2/3/2009 6:48:48 PM
Author: Haven
Wow, she is really passing up a wonderful opportunity, DFire.

I have a younger sister who graduated college in May and she''ll have saved over $15,000 in her first year out of school because she''s living at home with our mom.

I think kids have to be taught how to manage their money by their parents or older siblings. Otherwise, they may end up like all of these debt-laden Americans by the time they''re 25.
Haven is spot on - yesterday, I got my SS statement and I mentioned it to DH when I told him what all was in the mail. His reply was "Oh, isn''t it fun to see what all you''ve earned since you''ve been working? My mom used to show me hers to compare inflation and wages and stuff." And I gave him a blank stare and said "Your mom showed you her SS statement? My parents taught me that bills and anything relating to money go in the stack by dad''s computer and are magically paid without anyone discussing it."

I really wish someone had forced me to really examine where my money went when I was younger. I always viewed my paycheck as fun money because that''s how my parents treated my earnings - and I gotta be honest, at age 25, it''s really hard to cut that habit.
 

Dancing Fire

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Date: 2/3/2009 6:48:48 PM
Author: Haven
Wow, she is really passing up a wonderful opportunity, DFire.

I have a younger sister who graduated college in May and she''ll have saved over $15,000 in her first year out of school because she''s living at home with our mom.

I think kids have to be taught how to manage their money by their parents or older siblings. Otherwise, they may end up like all of these debt-laden Americans by the time they''re 25.
yup, she just don''t realize the facts. oh well...like i said "it is her loss".
 

Dancing Fire

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Date: 2/3/2009 7:06:26 PM
Author: Kaleigh

Date: 2/3/2009 6:29:51 PM
Author: Dancing Fire



Date: 2/3/2009 3:46:38 PM
Author: jsm
If your daughter is a teenager and she''s living under your roof (and/or you are paying the bills), I''d say it''s probably fairly normal that she hasn''t saved!
why? and yes she''s living under my roof. that''s the reason why i expected her to have some savings,cuz she have no bills.
You have to teach her, lay down ground rules....[;-)

Remind me to do that with DS! He makes an insane amount caddying on Nantucket, $150 is an average day. I know crazy. He caddy''s for the Chairman of NBC for heavens sakes. This summer he is going to save every penny. He has to to save for college. He''ll be a freshman next fall. We will not be paying for the extras.
He is in boarding school, so has learned how to have a checkbook and to manage his money.
He still has a lot to learn.
You''d love him DF, He''s a true Republican!!!
believe me, i try.


you got a smart son there.
 

Munchkin

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DF:
I was your daughter not too many years ago. I grew up with loving, protective parents who wanted the best for me. I moved home for a year between college and grad school and saved NOTHING (despite working 36 hours a week at a hospital). When I went to grad school my parents paid my tuition. Anything I couldn''t afford I put on my credit card - whoops.

The bottom line is that I finally learned how to budget money when I was ready to learn to budget money. My financial views were very irresponsible and immature, but my parents could have counseled me until they were blue in the face without changing anything. (Actually, in retrospect, I think they did) I figured it all out when I was in debt, working in the "real world," paying my own rent and utilities. Without a safety net, my selfish tendencies disappeared.

Your daughters don''t manage money well because they don''t have to. They know they have a loving, supportive Dad who will rescue them. When they need to make their finances work all on their own - they will learn their lesson. It''s a matter of when you are ready to have that lesson taught.

Currently I manage all the finances in our marriage. Getting me to agree to taking money from our savings is like getting blood from a stone. I''ve raised my credit score hundreds of points in the past 3 years. If I can turn money management around, anyone can. However, I truly believe your girls haven''t learned yet because, like me, deep down they know you (or my parents) will always bail them out.
 

pennquaker09

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Okay what I''m going to say is sort of hypocritical, but here goes. My parents, in particular my dad, is very much like you. I don''t know, I think my dad might be worse. I tried to go out and get a job and he didn''t want me working,. I would have had to eventually quit anyway, but I thought it would be great to make my own money for a change.

My parents gave me a monthly allowance during college. More than I ever could have needed. In retrospect, I could have saved a lot of what they gave me, but I spent it. My friends and I would fly to NYC on the weekends and I would pay because I knew I could always call Bham and get my parents to give me more.

I ended up graduating from college a year early and I went from daddy giving me whatever I wanted to a job and having to pay bills. It was probably the best wake up call I ever had.

I don''t think you should totally leave her hanging, but I think she should be responsible for a portion of her expenses. Make her pay her cell phone or half her car insurance.

It''s great that she has the IRA, but I don''t know that it is fair that you expect her to save 31% of what she made over the year. It''s kind of like making her run before she walks. I kind of feel like she has to make her way to the point she can save more. I think if it were me (I high doubt my kids will work while in college, but lets just say they do for purposes of this discussion) I would probably make the IRA contribution contingent upon grades. If they can work and still make the grades I find acceptable, I would have no problem with the IRA contribution.


Maybe I''m totally wrong. I think it''s important to save, but I don''t necessarily think it''s a big deal for her to have a an IRA right now. It''s something to work towards. She has youth on her side.
 

sba771

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I am 23 and have been working since I was 12
I worked 3 jobs in college so I could have spending money as my family took care of all college related bills and I have been doing my own IRA contributions for the last 2 years. It really just depends on your family dynamics. My father would not give me a dime because he has his new family now and they matter more and I could never ask my mom because I would feel bad taking from her, so it is all relative. I know a lot of people my age who don''t even know what an IRA is and save nothing so that is normal too.
 

Dancing Fire

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Date: 2/3/2009 11:04:02 PM
Author: Munchkin
DF:

Your daughters don''t manage money well because they don''t have to. They know they have a loving, supportive Dad who will rescue them. When they need to make their finances work all on their own - they will learn their lesson. It''s a matter of when you are ready to have that lesson taught.
sooo...i should kick them out of the house now?
 

Dancing Fire

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Date: 2/4/2009 2:37:25 AM
Author: pennquaker09

Maybe I''m totally wrong. I think it''s important to save, but I don''t necessarily think it''s a big deal for her to have a an IRA right now. It''s something to work towards. She has youth on her side.
too young to save?
she''s 21 yrs old if she don''t start saving how is she gonna have money to buy a house?
 

JSM

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Date: 2/3/2009 6:29:51 PM
Author: Dancing Fire
Date: 2/3/2009 3:46:38 PM

Author: jsm

If your daughter is a teenager and she''s living under your roof (and/or you are paying the bills), I''d say it''s probably fairly normal that she hasn''t saved!
why? and yes she''s living under my roof. that''s the reason why i expected her to have some savings,cuz she have no bills.
No bills, yes, but she''s 20. Do you go over what your bills are with her? How much it realistically costs to live? Does she expect you to help with a house downpayment?

It''s hard for a 20 year old who has her bills paid to really understand the ''saving'' concept. I was there (and my parents didn''t even pay a cent - student loans and my part time jobs did). Even though I only had a small amount of money left over after tuition and food, I didn''t save that $50 or whatever - I spent it. I was a normal girl who wanted clothes and shoes and money to have fun, and because my parents couldn''t afford to do these things for me, I went crazy. I saved nothing in college and left with tens of thousands of student loan debt.

Would I do it all differently? Hell yes. But I can''t, so I save as much as I can now. Your daughter will learn her lesson when she is accountable for her own lifestyle. I say this being a 20 year old 6 years ago, and the fact that I have a 20 year old AND 18 year old sister. They will learn, but it will take experiences to get there.

Just my .02. ;-)
 

Munchkin

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DF:
Of course I'm not saying you should kick them out of your house.

You questioned how they will be able to put a down payment on a home. If you asked your daughters if they want to own a home I am certain they will say "yes." However, for a 20/21 year old that is a "someday" thought. A home is *your* priority for them. Currently *their* main concerns are where they are going on Saturday, "do those come in my size?" and I want to get my hair cut. Personally, the only 20/21 year olds I've ever known who were focused on saving for a home had either moved out on their own at a young age or were already married or parents. I think having other priorities with their money is very age appropriate.

While I think they are acting very much like their peers, there is a role that you play in all this. If your older daughter were mine (I believe she is the one with the credit card stuff over the holidays?) I would do the following: tell her that the amount she went over her budget must be repaid in four months. If she isn't earning enough to make that feasible then any amount she comes in under budget in the next four months will also be applied as "payment." If she does not repay you, the budget gets cut in half. Many would say pull the card entirely, but I suspect you are trying to help so she needn't work so many hours that it interferes with her studies.

I would make both girls pay their own cell bills and gas money. Also, when I say pay their own cell bill, I mean they actually have to mail their own check or their own online bill pay. This forces them to learn to make payments on their own, on time. Just giving you the money to pay the bill isn't them same.

I would also charge each of them a small amount (even $100) monthly rent. I would then put that money aside for them for when they move out to further demonstrate that saving little bits can really add up. If they miss a month, they get charged interest.

I understand that you help them financially because you love them. It is time, though, that they begin to learn more about money. I would focus more on the month to month stuff, though, before I tried to really drive home a Roth. When they are on their own, they need to handle a monthly budget before even thinking about an IRA.
 

Dancing Fire

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Date: 2/4/2009 7:39:36 PM
Author: Munchkin
DF:
Of course I''m not saying you should kick them out of your house.

You questioned how they will be able to put a down payment on a home. If you asked your daughters if they want to own a home I am certain they will say ''yes.'' However, for a 20/21 year old that is a ''someday'' thought. A home is *your* priority for them. Currently *their* main concerns are where they are going on Saturday, ''do those come in my size?'' and I want to get my hair cut. Personally, the only 20/21 year olds I''ve ever known who were focused on saving for a home had either moved out on their own at a young age or were already married or parents. I think having other priorities with their money is very age appropriate.
well...that someday will be here sooner than she thinks. we bought our house when i was 28 yrs old,never hurts to think ahead. the older daughter has no income, so i don''t expect her to pay bills. i was never a saver myself and still not
i just want her to start saving some $$''s.
 

blondebunny

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im kinda confused... you put 2k in there.. she saved 2k you added another 2k.. thats 6k.. what the hell did she spend it on should be the first question if she only has $200 in it!
 

Dancing Fire

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Date: 2/4/2009 11:46:05 PM
Author: blondebunny
im kinda confused... you put 2k in there.. she saved 2k you added another 2k.. thats 6k.. what the hell did she spend it on should be the first question if she only has $200 in it!
no, she chiped in 2K into her Roth last yr for (07) so i added 2K to make it 4K total,but in 08 she made 8K and only have $200 in savings. what she spended on?
 

elle

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Does she have a bf? Has she started partying?

Those 2 issues were the downfall of ours. We''ve bailed the 23y/o out before and she went and did it again - dh was pissed. The 16 y/o spent all her holiday job money going to fancy restaurants and buying gifts for her bf. He splurges on her too with diamond necklaces and what not etc - crazy.
 

Dancing Fire

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Date: 2/5/2009 1:28:00 AM
Author: elle
Does she have a bf? Has she started partying?

Those 2 issues were the downfall of ours. We've bailed the 23y/o out before and she went and did it again - dh was pissed. The 16 y/o spent all her holiday job money going to fancy restaurants and buying gifts for her bf. He splurges on her too with diamond necklaces and what not etc - crazy.
BINGO!! that must be the reason why she has no savings,cuz she been with this guy for the last 8 months.
. wife said...now i know how my mom felt 30 yrs ago when i was out with you.
 
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