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23 Jun 2023 · 1 min

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0:56

Steve D Valentine (speaker) explains a family financial strategy: he and his spouse paid their children a $15,000-per-year salary into personal checking accounts which they controlled, used those funds to pay private school tuition, funded the children's 401(k)s starting at ages 10 and 12, and taught budgeting (allocating weekly $100 for expenses). He frames this as a legal way to convert family expenses into tax-deductible/company-paid items and to give the children an early retirement head start.

Questions this video answers

$15,000 per year

Ages 10 and 12

$100 a week

Chapters

We decided that we were paying for our kids to go to private school and that's a personal expense with no write off, right? So our kids had a $15,000 a year salary and it went into their personal checking account, which obviously Wendy and I control. But then we paid their tuition out of their checking account and then we also started funding their 401ks at the ages of 10 and 12. So the generational piece here is that my kids have a very, very great retirement that most adults don't have by the time they graduated high school because we started that very early and we started showing them how to do it. What we also did with them was giving them, we taught them budget wise, you have a hundred dollars a week that you get and you have to budget for. If you want to eat out at school, you can take your lunch, this is your clothes, this is your shoes, these are all the things you're going to need. So you have to learn to budget. So the money that came out of the company went into their personal checking accounts. It paid for their tuition, it covered their 401k and it gave them the budget for their clothing and other things. So we did is we made all their, all our kids expensive write offs by doing that completely legal.