4-H premium checks or youth income
Many area youth receive a premium check for their exhibits or a check for the sale of their livestock projects. If they fill out their 4-H financial sheets they will also learn about profit or losses. It would be a good time to learn about saving as well.
If this is not money they need to live on throughout the school year then consider putting their income, or at least part of it into a CD, Roth IRA, savings bonds, a savings account, or college education fund.
The maximum amount that can be added to a Roth in 2013 is $5,500 or your earned income. Be sure to ask your financial institution or tax preparer what the legal amount you can put in or contribute to it. There are many college education accounts that you can consider. Tax savings are different for different types of accounts. Be sure that they would be liquid enough by the time you graduate from High School so it can be used for furthering your education. How you invest the money will also depend on the child’s current age.
Work with your financial institution, bank or credit union and find out what savings options are available. Learn what the tax and withdrawal implications are.
The most important lesson is to learn to save. Don’t just blow your income on something you want. You will learn to appreciate the money you saved when the education loans are smaller because you put money away while you were younger.
Reach Karen Slunecka at 605-626-2870 or email@example.com.