Growing Up Archives - Kids Ain't Cheap

7 Unexpected Expenses as Your Kids Get Older

October 6, 2022 | Leave a Comment

My friend recently had a baby, and she has so much fun dressing him in cute clothing that she buys from Etsy. He has a better wardrobe than most adults! I understand her excitement in decking her baby out in adorable clothing (I did the same thing when I had my first child). However, I know her budget is tight, so I want to tell her, “Save some of that money for unexpected expenses as your kids get older,” but, of course, I don’t say that. Yet, parenthood has taught me that life will always throw you and your kids curve balls, which are often expensive!

Here are some unexpected expenses to plan for as your kids get older:

Larger Vehicle

You may think your current vehicle will suffice, especially if you only have one or two children. However, you may be surprised how quickly your family outgrows the car. We had a Toyota Echo when our first child was born, which I thought would be fine. However, we traveled frequently, and all the gear we had to bring for the baby didn’t fit in an Echo. So, in less than four months, we moved up to a minivan, which we still have 18 years later!

Don’t forget that your kids will likely want to bring friends to different activities, which is another reason you might need a bigger car.

Increased Grocery Bill

Everyone knows the grocery bill will increase when you have kids, but no one is prepared for the tween and teen years. Kids that age are growing rapidly, and they need a lot of food! When my son turned 11, I was shocked at how much he started to eat!

Private School or Homeschool

Public school is a good option for most kids, but some need a different environment, so their parents send them to private school. Or, parents like us might decide that homeschooling is a better option. Unfortunately, you may have planned for your kids to graduate from public school, so you’re unprepared to pay for private school or homeschooling when public school doesn’t work out.

Therapy for a Disability

No parent thinks their child will have a disability. I didn’t, yet, I have three kids, and each one has two diagnoses—two with autism, two with dyslexia, two with ADHD. These disabilities have cost us thousands of dollars in therapy that insurance would not cover. Thankfully, the therapy helped and the kids are doing great, but we did not anticipate having to pay for therapy, let alone having to spend so much.

Psychologist

Likewise, many kids, especially during COVID, needed a psychologist’s assistance. While most insurance plans cover psychologist appointments, you will likely have to pay a co-pay. Even if your co-pay is only $20 a session, you’re paying $1,080 over a year if your child goes once a week.

Electronics

Thirty years ago, parents didn’t have to pay a lot for electronics unless it was for a Nintendo or Atari game. Now, kids need laptops for their schoolwork, especially since some of the work (or all of it) may be online. In addition, most teens and tweens have cell phones that you’ll need to pay for.

I bought my youngest two simple Gabb phones, but they still run $50 monthly for two lines. Electronics expenses add up quickly!

High School Fund

A wise parent will start a high school fund when their children are young. Many activities in high school are pricey. Consider saving for

Class trips,
Homecoming,
Prom,
Senior pictures,
College application fees,
ACT or SAT prep and test fees

Final Thoughts

If you have a baby or a toddler, pour yourself into them, but remember, there are many unexpected expenses as your kids get older that you’ll want to save for now. Even though it’s cute to dress babies in adorable clothes, make sure you’re also saving for the future.

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Melissa Batai

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in Arizona where she dislikes the summer heat but loves the natural beauty of the area.

Simple Ways to Create Memories with Your Kids

September 22, 2022 | Leave a Comment

Sometimes when your kids are little, every day might seem so LONG. The kids have endless needs you have to meet, and they might fuss, cry, or have tantrums. However, smiling older women look at you in the store and compliment your beautiful family and reminisce about their now-grown children. People tell you, “The days are long, but the years are short.” Yet, while you try to enjoy the days, sometimes you struggle. As your kids grow older (and it happens so quickly!), you realize that the time you have with them is fleeting, and you want to create memories with them. Here are some suggestions to do just that.

Simple Ways to Create Memories with Your Kids

Creating memories with your kids doesn’t have to be expensive. You simply need to spend your undivided time with them.

Actively Watch Their Sports

How often have you gone to kids’ sporting events and seen parents not watching the game but instead giving all of their attention to their smartphones? Put the phone aside and watch your kids. They notice, and they’ll appreciate that you spend time on them, not on the internet.

Have a Dedicated Movie Night

One fun family tradition is to have a dedicated movie time. In our family, we watch a movie on Sunday afternoon. This activity may not seem like much, but your kids will likely enjoy this tradition and remember it fondly when looking back on their childhoods.

Play Board Games

Likewise, you can have a family game night. Or, if you can’t play board games with the family that often, make a habit of playing a board game with your child at least once every two weeks. Your kids will enjoy playing the game and the time you gave them.

Read Aloud to Them

This family tradition is best started when your kids are young, though you can begin any time they’re in elementary school. When my kids were babies, I started reading aloud to them, and we never stopped. My younger kids are now 13 and 12, and I still read aloud to them every day. I’m sure this is one activity they’ll cherish and hopefully repeat with their children.

Have a Yes Day

Too often, we parents say no because it’s more convenient than saying yes. Challenge yourself to say yes one day and see how different the day will be. “Mom, can we go to the park?” Yes. “Can I bake a cake?” Yes. If the activity the children propose isn’t dangerous or out of your budget, try saying yes and see what happens.

Take Them on Vacation

Finally, if you have the means, take your children on vacation. Getting out of your element and exploring new places leads to family bonding, especially when you reminisce about your adventures years later.

Final Thoughts

Kids grow up too quickly. The older women in the stores are right—the days are long, but the years are short. Cherish the time you have by utilizing simple ways to create memories with your kids. You’ll be glad you did.

5 Ways We Inspire a Love of Reading in Our Kids

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Melissa Batai

5 Ways We Inspire a Love of Reading in Our Kids

August 14, 2022 | Leave a Comment

As a child, one of my favorite activities was reading. This love of reading and later, writing, helped lead me to major in English in college, become a college English instructor, and learn more about the world than I ever could have without books. Because books enriched my life so heavily, when I had kids, I wanted them to love reading as much as I did. Luckily, most of them do. We inspire a love of reading in our kids using the following methods.

How We Inspire a Love of Reading in Our Kids

To help your kids fall in love with books and reading, you need to immerse them in the reading world.

Read Aloud to Them

From the time our kids were born, we read aloud to them. At first, we started with short board books like Goodnight Moon and The Going to Bed Book. (At this stage, don’t be surprised or annoyed if your child asks you to read the same book over, and over, and over again!) Then we expanded into longer stories until we were reading our kids chapter books when they were in preschool. I continued reading to them all through middle school.

Have a Home Library

To foster a love of reading, surround your kids with books. We always had bookshelves filled with books the kids could look through when they were little and read when they started school.

You don’t have to spend a lot of money to do this. For example, we picked up most of our kids’ books at garage sales for 10 cents or less.

Take Them to Library Activities

The public library is a wonderful resource that we utilize frequently. We started by bringing our kids to the library to pick out their books and to join in on story hour. Because of these early experiences, our kids always associated the library with fun.

Participate in Reading Rewards Programs

In the summer, sign your kids up for reading rewards programs. For example, Pizza Hut has the Book It program. Your public library likely has a reading program, too. Our son was one of the top readers one summer in elementary school, so he got to join the other top readers for a bowling and pizza excursion compliments of the library. He still talks about how much fun that was.

Let Them See You Read

Kids learn best by watching your actions. You can tell them that reading is fun, but if they don’t ever see you reading, you’re not reinforcing that lesson. My kids see me read books and hear me listen to audiobooks in the car. I love to read, and they see me regularly taking time to do so.

Final Thoughts

We inspire a love of reading in our kids, which was one of the best things we could do. Today, they still read for fun and recreation, enjoy learning, and have an exceptional vocabulary.

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Melissa Batai

3 Mistakes We Made in the College Process

July 14, 2022 | Leave a Comment

First children are always the guinea pigs of the family. Parents experiment with them and learn how parenthood works. They understand that once you have children, life doesn’t always go as planned. Our oldest, who recently turned 18, is also our guinea pig when it comes to college. We’ve learned that there are significant mistakes we made in the college process with him. Luckily, we’re learning from these experiences, so hopefully, we’ll be smarter with the college process with our younger two children.

Not Having a Backup Plan

My husband and I have always worked in education. I worked at a community college until I quit after our third child was born, and my husband has worked at two different universities.

We didn’t have money to save for college when our kids were young, but we weren’t concerned because we knew that our children could receive a tuition discount if they went to college where my husband worked. Between that discount and the scholarship our son received, he could have lived at home and gone to college for free.

However, life doesn’t always work out as we plan.

Moving After His Senior Year

My husband had been looking for a job for the past 18 months. He had interviewed and made it to the final rounds for four different jobs. However, none worked out. He applied for one more this past February, and we decided if he didn’t get that one, we’d quit looking until after our oldest finished college.

Luckily, for my husband’s career, he got the job. However, the job required a move across the country. While the job pays much more than his current position, it’s not at a university, so we no longer have a college tuition discount.

In addition, our son hadn’t applied to any of the nearby colleges in the new location because we didn’t know we’d be here. He missed out on the prime time for college admissions and scholarships. Now, he’s stuck applying only 6 to 8 weeks before college begins.

Not Specifying How Much We Would Contribute

Some parents tell their children what amount they have to contribute to their college education. Then, the children can use that amount as a basis to help them determine which colleges they will attend based on affordability. We never had that discussion because we didn’t think we had to; our child knew he could get a substantial tuition discount.

Now, we don’t know how much we can afford to pay because we’re moving to a new geographic area of the country and still aren’t sure how much typical monthly expenses will be. That makes determining affordability difficult.

Final Thoughts

The three mistakes we made during the college process have made the experience more difficult for our son than it needed to be. We had a unique set of circumstances that, hopefully, won’t happen to our younger children.

However, we’ve learned from our mistakes and will now be saving for their college tuition and setting a limit for them that we can pay.

Storyworth: The Most Thoughtful Gift That Can Be Cherished for Years

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Melissa Batai

StoryWorth: The Most Thoughtful Gift That Can Be Cherished for Years

June 9, 2022 | Leave a Comment

My grandma died almost 20 years ago at the age of 90. I was close to her and thought I had asked her everything I needed to about her life. But as I get older, I realize there are still more things I would like to ask her and more I would have liked to have known about her, especially her younger years before I was born. I wish StoryWorth, the most thoughtful gift, would have been around when she was in her 70s and 80s.

What Is StoryWorth?

StoryWorth is a website that helps you learn about your relatives’ lives. For a $49 fee, you can get one question a week sent to your relative. Your relative answers the question, and StoryWorth compiles all of the answers. Your relative can also add pictures to the stories. After one year, the stories are bound into a hardcover book.

What Questions Are Asked?

StoryWorth has hundreds of questions. When you first pay for the subscription, StoryWorth populates 52 questions automatically. However, you can change out questions by looking through the available questions. This allows you to target specific information you’d like to know. Some potential questions include, “Describe one of your most memorable birthdays,” and “How did you meet your spouse? When did you decide you wanted to marry them?”

The Most Thoughtful Gift’s Stay Power

StoryWorth is an excellent gift for you and your children to learn more about older relatives’ lives. However, this gift is a gift that keeps on giving.

As I get older, I’m spending more time researching my ancestry. I have a great, great, great grandfather, Alonzo, who fought in the Civil War. He kept a journal during that time, but the journal was factual information about the battles he was in and the marches the soldiers took. There was nothing personal. I discovered that Alonzo’s mother typed up a two-page document about her life, which included personal information about Alonzo. That is a cherished document because those relatives now are more than a branch on my family tree. I have a glimpse into how they lived.

Imagine how cherished a StoryWorth book full of memories will be to future generations when they want to know more about the people in their family tree!

Our Experience with StoryWorth

I bought my mom a subscription to StoryWorth for Mother’s Day. She has answered every prompt with several paragraphs of writing. Although I know the stories behind most of her answers, my kids didn’t. They love learning more about their grandmother’s life, especially when she was younger.

Final Thoughts

StoryWorth is the most thoughtful gift for the recipient, the gift giver, and future generations. The recipient gets to share the stories of her life and relive her memories. The gift-giver learns more about the recipient’s life and create a cherished keepsake. Future generations of family genealogists get a priceless document that will let them deeply learn about the life of one person in their family tree.

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Melissa Batai

7 Free Activities to Do with Toddlers This Summer

May 19, 2022 | Leave a Comment

When my kids were toddlers, we tried to do something outside the house every day, especially on the weekend. Staying inside made me stir-crazy, and I wanted the toddlers to burn off some energy outdoors. Summertime was my favorite time because there are so many free activities to do with toddlers.

7 Free Activities to Do with Toddlers

If you don’t want to spend a lot of money keeping your toddler entertained, try these free activities that toddlers love.

Visit Bookstores

Our bookstore had a large wooden train frame and several different toy trains. My son LOVED the train table. He would play for an hour at the table, and he enjoyed watching and interacting with other kids who came to play there. Parents can sit nearby and browse books while their kids play.

If your book store doesn’t have something like this, I still would take the toddlers to a bookstore, sit in a chair, and read them a few board books.

Utilize the Library

The library was one of my and my kids’ favorite places to go because there’s so much for toddlers to do:

Attend Storytime

We were regulars at storytime. Our library had storytime four times a week, and we showed up for many weekly sessions. They even had bilingual story time in Spanish. Afterward, the librarians usually had a craft for the kids to do. These events were a big hit with all three of my kids, and today they are voracious readers, which I attribute partially to all of the storytimes they attended.

Attend Enrichment Events

Likewise, many libraries have enrichment events you can check out. Our library has had magic shows, wild animal presentations, theater presentations, puppet shows, and many more activities. Check out your local library’s calendar and surrounding areas to find these events.

Borrow Busy Bags/Games

Libraries aren’t just for reading! In the kids’ area, many libraries have games and busy bags that their youngest patrons can check out. We always utilized these; my kids loved having new activities to do at home.

Museum Passes

At some libraries, you can check out museum passes, which allow you and your child to get into various museums around town for free! You can utilize these a few times a year to expand the places you have access to for free.

Attend Free Community Events

If you live in a larger city, there may be free community events during the summer. We lived in the Chicago suburbs when my kids were little, and every Saturday, my husband took the kids downtown to an event that featured singing, dancing, and games.

You may also find outdoor concerts, plays, and festivals. Fourth of July parades are usually a hit with the toddler crowd, too.

Swim

Free Activities to Do with Toddlers This Summer

Photo by Kenny Eliason on Unsplash

If you have a lake or public pool nearby, take your kids swimming. It’s never too early to learn to swim, and most toddlers love playing in the water and with the sand on the shore.

Final Thoughts

Entertaining your little one and getting her out and about in the community doesn’t have to cost a lot. These are just a few of the many free activities to do with toddlers this summer.

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P.s. I found some great DIY playroom ideas on savedbythecents.com, recommend you check them out => here.

Melissa Batai

Why I Decided to Teach My Teen to Drive

March 10, 2022 | Leave a Comment

When I was a teen, my high school offered driver’s ed as a four-week class during the summer. We sat in an air-conditioned classroom during the morning and watched driver’s training videos. Then, in the afternoon, we went out to the parking lot to practice driving a car. Later, we made our way onto the roads. The instructor had a car equipped with pedals on his side to override any mistakes we made when braking or accelerating. However, now, thanks to budget cuts, many schools no longer offer driver’s training. Instead, parents must choose between teaching their kids to drive or paying for a driving school. For our family, there were several reasons why I decided to teach my teen to drive.

Why I Decided to Teach My Teen to Drive

Our family picked this option for a few reasons.

Driving School Is Expensive!

In our area, driving school is expensive! The cheapest package includes two hours of driver’s ed and two one-hour driving sessions for $189. Their mid-level package includes 10 one-hour driving sessions for $699. Their elite package includes 30 one-hour driving sessions for $1799.

If I picked the cheapest session, I would still have to go out with my teen for many hours of driving, so why not just do it myself?

We ended up buying a home-based driver’s ed program. We watch that for a few lessons. Then we hit the road. So far, our teen has about 10 hours of driving under his belt.

I Can Keep My Cool

Another reason why I decided to teach my teen to drive is that I can keep my cool. If he does something erratic like accidentally pushing the gas instead of the brake (it’s happened!) I can quickly and calmly tell him to hit the other pedal.

If you don’t think you can keep your cool with your teen, I don’t recommend teaching them to drive. My mom went out driving with me just twice before I got my license. Once, I was learning to drive stick shift, and I stalled the car in an intersection when I tried to go from a stop. My mom panicked and started saying, “Go, go! We’re going to get hit!” Let me tell you, that did not help me get the car moving.

We Have a Vehicle to Use

We have two vehicles, one we bought 17 years ago when our teen was just an infant. Of course, I don’t want my son to have an accident, but if he does have a fender bender, this vehicle can take it. If I had a brand-new car, I might not decide to teach my teen to drive.

Final Thoughts

Should you teach your teen to drive? As you can see, that depends on many factors. For our family, I decided to teach my teen to drive because we could save money, I stay calm, and we have a vehicle he can use. However, other families may have to consider other factors and make the decision that is right for their families.

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What Should Teen Drivers Contribute to the Expense of a Vehicle?

February 17, 2022 | Leave a Comment

Do you remember the day you received your driver’s license? I remember going down to the Secretary of State’s office on my 16^th birthday to get my license. It was the best birthday present ever. Now, my husband and I have a teen who is almost ready to be an independent driver. As a result, we are currently determining what should teen drivers contribute to the expense of a vehicle? If you ask this question to other parents, you’ll find answers just as varied as the parents themselves.

Avoid Burdening Them Too Much

Teenagers should learn that financial responsibility is the flip side of increasing independence. Most of us don’t want spoiled, entitled teens, and asking them to be at least partly responsible for some of a vehicle’s expense that they use is fair. However, I’m of the mindset that we shouldn’t burden teens in high school too much.

When I was 16, I inherited my dad’s fixer-upper El Camino. I was responsible for gas and insurance. That meant I had to have a job to have the vehicle, and I needed the car to have a job. When I had been driving for six months, my mom bought me a used Ford Escort in better shape than the El Camino. I made payments to her for the car and was also responsible for all of the maintenance and upkeep as well as gas, insurance, and registration. With this purchase, I was locked into having a job throughout the rest of high school to afford the car. That affected my grades.

I’ve decided to handle things differently with my kids.

What Should Teen Drivers Contribute to the Expense of a Vehicle?

Ultimately, what you choose is based on your beliefs and values. However, here are some popular options.

Pay All Expenses & Tie Car Usage to Behavior

One option, especially if you don’t want to give your vehicle to, or buy a vehicle for, your teen is to not have the teen pay anything. (This is also a good option if your teen doesn’t have time to work a part-time job.)

Using this approach, the vehicle is yours, and you’re simply allowing the teen to borrow it. However, you clearly state that the teen can lose the right to use the vehicle if he doesn’t maintain his good grades or if he has an attitude or does not keep up on his chores.

Pay for Gas

Some parents have their teens pay for gas only. If your child only works during the summer or does not have a job and does chores at home for money, paying for gas is a good option since she doesn’t earn a lot of money. If she’s financially savvy, she’ll soon learn to drive only when necessary and to combine errands so she doesn’t spend too much on gas.

Pay a Percentage of Their Income

Another option is to have your teen pay a percentage of their income to help pay for the car’s expense. If your child makes $100 a week at his job, maybe he pays 15% of his income, $15 in this case, per week, for the privilege of using the vehicle.

The Child Pays for Unusual Expenses

Regardless if you have the teen pay for gas or a percentage of their income or nothing at all, many parents have their children pay for unusual expenses.

For instance, if your child gets a speeding ticket, he is responsible for both the ticket and the amount that the insurance increases because of the ticket.

Or, if he has a car accident that is clearly his fault, he pays for the car repairs or at least a portion of the repairs. You may also require him to pay the deductible for the car repairs.

Why They Shouldn’t Be Responsible for Maintenance

Some parents want their children to be responsible for the car’s maintenance and upkeep, but I would argue against that. Car repairs nowadays can be expensive. Some teens will avoid routine maintenance like oil changes and regular tune-ups because they’re too costly. That’s unfortunate because routine maintenance lowers the cost of the car’s upkeep. Plus, many repairs are cheaper if they’re made as soon as the driver recognizes a problem.

That second car my mom bought for me? The Ford Escort? We bought it from a college student who we didn’t realize had not maintained it because he couldn’t afford to. Even though my mom bought the car with only 40,000 miles on it, it lasted me less than a year because the former owner never added oil to the vehicle or maintained it.

When your teen is driving, you want them to be safe, and you also want to maintain the quality of the vehicle. That’s why my husband and I plan to pay for the maintenance and repairs while our kids are in high school.

Save the Money for Them

If you can afford the vehicle and you’re having your child contribute only to learn financial responsibility, you have another option to consider. Some parents in this situation take the money that they require the teen to contribute for use of the car and save that money. They may put it in a Roth IRA for the child, which is only possible if your teen has a job. Or, they secretly put the money in an account that the child can use to buy a car when they move out or to use to fund the expenses they have when they move out.

Saving the money for the child (without telling her) is a good option because you’re teaching financial responsibility, but you’re also helping her in the future with her own money.

Final Thoughts

Having a car or access to a car as a teen is a privilege, not a right. Determining what should teen drivers contribute to the expense of a vehicle is a personal choice. We will most likely have our teen contribute the price of gas, and we’ll cover the rest until he’s older and has a part-time job.

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Why You Shouldn’t Pay for Braces in Full to Save

January 20, 2022 | Leave a Comment

From about the time my oldest was six, I knew that he would need braces. His teeth were cramped and crooked. We were on a tight budget, and I was concerned about the cost. When our oldest was 11, our dentist suggested he get a consult with the orthodontist. The orthodontist told us what we already knew—he would need braces, and it was going to be expensive. When the orthodontist gave us the various payment options, I saw that there was a discount if you paid for the treatment upfront. After much investigation, we learned there are several reasons why you shouldn’t pay for braces in full to save.

How Much Do You Save by Paying in Full?

In our case, we would have saved $150 off the total $5,000 cost of braces by paying in full.

Why You Shouldn’t Pay for Braces in Full to Save

We decided not to pay in full for several reasons.

Impacts Your Finances

Because we were on a tight budget, paying $5,000 out of pocket at once would hinder our finances. We couldn’t justify upsetting our finances and struggling for a few months financially to save $150.

Payment Plan Is Available

Many orthodontists have payment plans available. These payment plans often are offered at zero percent interest. We paid our orthodontist a $500 down payment and then paid $125 monthly for 36 months. The monthly payment was small enough that it didn’t affect our budget.

We also had a flexible spending account, and each month, we submitted the $125 payment for reimbursement.

Had we paid for the braces in full, we wouldn’t have been able to get all of the money reimbursed from our flexible spending account because those have a yearly limit (currently $2,850).

The Orthodontist May Close His Practice

When we researched whether we should pay for his braces in full, someone warned me that the orthodontist might close his practice while our son was getting treatment. If that happened, all the money we paid upfront would be gone.

I listened to the advice but didn’t think this was a serious concern. How many orthodontists suddenly close their practice? My son completed his orthodontic treatment successfully.

Then our oldest daughter got her braces with the same orthodontist. One year into the pandemic, he pulled me aside to tell me that his business had taken a hit and he was closing down his practice. Thankfully, we hadn’t paid upfront with our daughter, either. I can’t imagine being out all that money, but now I know that unforeseen circumstances can arise, and orthodontists can and do close their practices.

Final Thoughts

If you’re a bargain shopper, you may like the idea of saving some money by paying in full for braces. However, we learned you shouldn’t pay in full for braces to save because you can’t fully utilize your flexible spending account. More importantly, your orthodontist may go out of business as ours did during the pandemic. Then you would have lost all of the money you paid upfront, which is no savings at all.

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Should Your Teen File a Tax Return for a Summer Job?

October 7, 2021 | Leave a Comment

Getting a summer job may be the first taste of freedom for your teen. She likely now has more money coming in than she did when she was only receiving an allowance. However, with increased freedom comes increased responsibility. Your teen may now also need to file a tax return. Whether she needs to file a tax return for a summer job will depend on several factors.

Should Your Teen File a Tax Return for a Summer Job?

The quick answer is, it depends. Here are a few factors to consider:

How Much Did He Make?

First, consider how much your teenager earned in a year. According to the IRS, if a single filer earned less than $12,550 in 2021, he does not need to file a tax return. (This new amount represents an increase to account for inflation, up $150 from last year.)

However, you must answer another question to know whether or not he needs to file taxes—did he have taxes taken from every paycheck?

Did She Have Taxes Withheld?

When your child starts a new job, she has to fill out a W-4 form. On that form, she has to determine whether or not she will have taxes deducted. If she thinks she will earn less than $12,550 in a year, she can claim “exempt,” and no taxes will be taken out of her paycheck. If no taxes were pulled from her paycheck and she earned less than $12,550 a year, she likely won’t have to file a tax return. To be certain, you can utilize the IRS’ free tool, Do I Need to File a Tax Return?

You may consider having your child go ahead and have taxes withdrawn from her paycheck for two reasons.

First, having taxes withdrawn from her paycheck is a good life experience. When she’s older and working full-time, taxes will be withdrawn. Learning that her entire salary is not her own because her employer will withdraw things like taxes and insurance is a good experience.

Second, some states have different standard deductions. If you live in Arizona and are a single filer, you have a standard $12,550 state deduction just like the federal deduction. However, if you live in Iowa, the single standard state deduction is only $2,130. If your child works in Iowa and earns more than $2,130 in a calendar year, she will owe state taxes if she claims “exempt” on her W-4. If you don’t know what your state’s deduction is, having taxes withheld is easier.

One Exception

An important exception is if your child is an independent contractor, a.k.a a freelancer, and earns a 1099-MISC for his work. If he is a freelancer, he will need to pay self-employment taxes regardless of how much he makes in a year. In this case, he will need to file an income tax return every year.

Final Thoughts

Whether or not your child needs to file a tax return for a summer job depends on several factors. If you’re still not sure, the IRS tool should help you determine the answer.

Getting your child into the habit of having taxes withheld and filing a tax return is excellent practice for adulthood and the responsibilities that come with it.

Non-Traditional and Easy Jobs for College Students

Cleaning Poop and Other Jobs Your Kids Can Do This Summer to Earn Money

Melissa Batai