Education is by far the most important thing in a child’s life. Today, the cost of education is rising rapidly. If you visit your financial adviser, he or she may shed light on the current amount needed to acquire that important degree for your child.
Many of you might choose to start saving money. Some people might even tell you to look at the 529 plan even before your child is born. But here is an option that perhaps you did not know about: “As a business owner, you can choose to hire your children”.
Hiring your children is likely a better way than investing in a 529 plan. Keep reading to know why.
Yes, it is. Their age does not matter as long as you do it in the right way. But you have to remember that children are only allowed to work in specific industries and the types of work are limited according to the Fair Labor Standard Act.
The best option is to hire your children as promotional models for your business. This is a safe option since your kids will not be exposed to hazardous environments and equipment, and they will not be working for prolonged periods.
It is also cheap when compared to hiring professional photoshoot talent.
You have to ensure that they are safe and that you pay them a defensible rate.
Even though 529 plans provide some tax advantages, you can avoid them by hiring your kids.
This option will enable you to save your money, and you can easily access it whenever you want. You will also be able to avoid any 529 tax penalties.
The 529 rules restrict where and how you can spend your money. It doesn’t matter the amount that is in your savings. This is applicable given the traditional schooling trend. All the students are prepared by the colleges to meet the workforce needs.
Hiring your kids instead and paying them helps to keep that money flexible. Your plans can easily change as the future of education changes.
It is essential to start teaching your children on fund management skills while they are still young. Teach them to earn money through honest work instead of buying them latest video games. This way, your children will know the importance of earning honest money along with the choices they might face when they have it.
Tax Tips for the Self-Employed
529 Savings Plans
The Advantages of Being an S-Corporation
Understanding Your Balance Sheet
How (And Why) to Create Your Business Budget
How to Invest Your Business Profits