Nothing about real estate this time, it is personal finance and saving (my second favorite subject).
It is that time again, when teens are out of school and need something to do. I highly recommend a summer job (don't we all). Not only does it alleviate the boredom, it can give a sense of accomplishment and pride. My sister-in-law has some very wealthy step-children and one summer she made her daughter and one of her step-sons get jobs at McDonalds. She said "it was so good for them both, it taught them responsibility, and it may be the only job the boy will every have in his life."
A summer job can also be very lucrative. In one of my past blogs, Five Gifts That Will Make Your Kids Rich it discusses the merits of Roth IRAs, which you probably already have heard about. What is important is to get their value across to the child.
IRAs only cost about $100 to open and you can invest as much as your child makes (yes, they have to earn it), up to $4,000 a year. "Tax-free compounding over time produces a powerful payoff: A $1,500 yearly contribution will be worth nearly a million bucks in 50 years, assuming an 8 percent average annual return."
"Few teens are likely to be excited about saving their hard-earned babysitting money for retirement. So, if you can, offer to match what they make in an IRA. Want another way to ramp up their enthusiasm? Slip a little cash into the gift card too."
They might also take an interest if you ask them what products they really like and do some research with them for stocks or mutual funds.
You may want to start the concept of saving early. I remember, back in grade school, we had banking day (do they still have that?) I really liked seeing in my bankbook how the total kept getting bigger--what reinforcement. I will tell you that I still like the number getting bigger!
Grandparents have the ability and opportunity to help in this effort.
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Excellent post! Although I can't say he's truly excited about it my 13 year old son is assisting me this summer with my files. He's very good at the details, and has the patience. I figure it's excellent work experience for him, and will give him confidence when he goes to get a "real" job. We've even got a very rudimentary savings system in place for him... one envelope for fun, one for savings, one for charity.