How Bringing Your Kids To Work Builds Confidence, Skills, And Long-Term Wealth

 What Are The Advantages Of Having Your Kids Work At Your Business?

Ever wondered how to turn family time into a masterclass in money, confidence, and character? We’re pulling back the curtain on what happens when your kids step into your business—not as spectators, but as contributors with real responsibilities and real payoff. From greeting clients and stamping envelopes to basic bookkeeping in QuickBooks, we show how age-appropriate tasks can spark public speaking skills, sharpen focus, and build a habit that changes futures: finish what you start.

We also get into the strategy that gets everyone’s attention: paying your kids a reasonable wage for legitimate work and channeling that earned income into a Roth IRA. With careful documentation and market-aligned pay, small contributions can compound for decades in broad-market index funds. We break down what “reasonable” looks like, how to track time or projects, and why records matter. You’ll hear how shifting income into a child’s lower tax bracket can create immediate savings, why the standard deduction is a big lever, and how to avoid the common traps—like inflated modeling rates without real deliverables.

Beyond the dollars, we talk values and community. Volunteer work, charity events, and hands-on service give kids a wider lens on what meaningful work looks like. Exposure to many careers—accounting, therapy, retail, product, and more—teaches that income follows skill, not a single path. That perspective fuels ambition with purpose, whether it’s saving for a first hotel or building a side hustle that sticks. We also touch on state-specific opportunities such as employer-linked 529 advantages and why a quick chat with a tax professional can unlock benefits you might miss.

If you’re ready to raise confident, capable kids who understand money and respect the process, this conversation is your playbook. Subscribe, share this with a parent or business owner who needs it, and leave a review with the first job you’d give your kid—we’ll feature our favorites in a future show.

To learn more about MyPocketFP visit:
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Transcript

Welcome And Show Setup

SPEAKER_00 0:03

Welcome to My Pocket FP, the podcast where your wallet finally meets its financial planner and they actually get along. Join your host Jason Taylor, certified financial planner, money sensei, and your guide to financial freedom. Whether you're planning for retirement or just trying to figure out where all your money went last weekend, we've got you covered. Get ready to take control of your financial life with smart tips, surprising insights, and yes, an app that fits right in your pocket. This is My Pocket FP because your future deserves more than guesswork.

SPEAKER_01 0:47

Hiring your kids is not just a family moment. It can be a smart financial and developmental move when done correctly. Welcome back, everyone. I'm Julie Schwenzer, co-host and producer in the studio with Jason Taylor, certified financial planner and the creator of My Pocket FP. Jason, thanks for being back with us.

SPEAKER_02 1:06

Thank you, Julie.

SPEAKER_01 1:07

So we're glad to have you back, especially for this topic. And you demonstrated it yourself. You had your daughter Violet on a couple episodes ago, and she was wonderful. And it seems like you do integrate your kids into your workplace. What do you think the advantages of having kids at your business are?

Confidence And Real-World Learning

SPEAKER_02 1:29

Yes, one thing, it's educational for the kids. That's one of the reasons I started doing it. It wasn't, you know, out of convenience because I, you know, they were on summer break and I wanted to take them uh you know to work instead of you know taking them to daycare, which I did save money doing that as well. But um one of the big things was you know kind of building confidence. Um I find that the more experience you have, the more confident you can be with things. Um my younger daughter, I actually took her to networking events, um, and I took her to business meetings with me, and I she got all dressed up in uh a little suit, and uh she'd go in and shake hands, and she had a little book she'd try to sell to people. And uh it was a good experience for her in in public speaking, uh in you know, uh interrelating with adults, and you know, being at a you know, sit at those networking meetings for an hour uh and listen to other people give their uh presentations on the businesses, you know, can be hard. I believe my older daughter was six or seven when I started doing that with her.

SPEAKER_01 2:29

Oh, that's amazing. And how was their patience levels too? And you know, they're hearing probably a lot of terms. I mean, they hear you at work, right? So they're familiar with some terms, but then they're hearing all these new, you know, professional and industry terms. Um, how did they absorb all that?

SPEAKER_02 2:46

I was very proud of them in uh in 2020, um, we created a uh a lemnate book together. Uh, and I had them define different uh terms, you know, like profit and things, you know, uh use uh debt and different terms that you have in business. Um and they put it into kids' terms on what they meant, and they they did really well with that. I was surprised. Um, the only one they had trouble with actually was budget, um, because fidget spinners were big back then. And they would get fidget and budget kind of mixed up, which was kind of cute.

SPEAKER_01 3:23

Oh, that's adorable, yeah. Yeah, they do, and then and then they're like, what kind of budget can I spend on the fidgets? Um and what about uh, you know, you just touched on this, but like the financial literacy part. Um, how does that help them with like understanding how money works?

SPEAKER_02 3:44

It does help as far as they know that if you have a skill, you can make money. Um, so it can be a hindrance as well because anything they do, they want to try to find a way to monetize it. Um we we also in 2020, we got one of our, you know, the the uh oh what they call them, the uh pandemic puppy. So we we got a dog back in 2020, and the first thing my older daughter said was said was maybe we should sit on the corner and uh have people pay 50 cents to pet our dog.

Side Hustles And Business Exposure

SPEAKER_01 4:17

Yes. And the dog's like, well, I'm in a I'm in an entrepreneurial family now.

SPEAKER_02 4:24

So yeah, it's it's also good because they can see, you know, if they need money, how they can get it.

SPEAKER_01 4:31

Yeah, absolutely. And do you think that they have a better understanding?

SPEAKER_02 4:35

Yeah, yeah. Um and that's when the networking event helped out because she saw all the different types of businesses, you know, from accounting to book selling to therapists, um, people selling lotions, you know, lots of different ways to make money. And it you weren't just pigeonholed in a certain place. Oh, yeah, a side hustle.

Age-Appropriate Tasks At Work

SPEAKER_01 5:01

Yeah, and boy, are we in that world now too where you see that more than ever side hustles, side gigs, um, you know, people exploring other career options. And then when you have your daughters at work too, what were some of you mentioned some of the things that you guys worked on. You worked on a book together, and I love that. I love that the you had the kids define what these terms meant to them in their own words. I think that's wonderful, and that's such a quick way for kids to learn. Um, what are some other in the networking and what are some other age appropriate tasks that you found to be helpful for them?

SPEAKER_02 5:36

I had them help host a Christmas event for me uh with the clients. Uh or my daughter actually played the music for the clients when they were there. Um, I've had them, you know, help, you know, shred documents. Um I've had them help stamp envelopes. Uh more recently, now that my my older daughter's you know in high school, uh, she even started working on QuickBooks for me and doing some data entry.

SPEAKER_01 6:04

Oh, that's crucial. So are they is she good at Excel then as well?

SPEAKER_02 6:08

Uh she's better at QuickBooks than Excel, I believe.

SPEAKER_01 6:11

QuickBooks, that that's that's a skill, you see that a lot too out there.

SPEAKER_02 6:15

Exactly. Yeah.

Volunteering And Community Service

SPEAKER_01 6:17

And then um what about uh any philanthropic uh areas of the business too? Do they help with that? Or I'm sure they, you know, as a family too, do you guys work on any charities together?

SPEAKER_02 6:29

Uh so my wife is on the board of the local food bank, and uh both my daughters like to go help with that. Um they're also a part of uh uh Women's Charity League, uh, where the mother-daughters do charity work together. Uh so they do a lot of charity work with that. Um, you know, we do the 5Ks and races like that, but um they actually actively stock shelves and work with uh different uh nonprofits as well.

Building Work Ethic And Grit

SPEAKER_01 6:59

Oh, that's wonderful. Yeah, very well-rounded children. Yeah, and and prop your wife too for her work in that area. That's really nice. Um, and then what about like their work ethic? Do you see a huge change? I mean, it you know, the you started them earlier, so that that's amazing too. But like, how do you feel about their work ethic? It must be pretty strong.

SPEAKER_02 7:20

Yeah, you know, work ethic is important. Um, and it's the key thing I like to put in them is once you start a project, you need to finish it. You know, whether it's for yourself, for a client, uh, for a friend. Um, really the completion is the biggest part. You know, just you know, anytime you have contract work, if you don't complete the project, um, you're not gonna get paid. Um, you're gonna have you know unhappy clients, unhappy friends, unhappily family. Uh it's good to finish things you start.

Tax Strategy: Pay Kids And Fund Roths

SPEAKER_01 7:51

You know, I I've heard that too about high school and college too. It's like, you know, obviously having top grades and performing well and all these extracurricular activities are amazing, but just showing that you completed it, you passed, you know, that that's a big deal. Like college, because I mean, even on the resumes, we don't really see GPAs as often as we used to. That used to be something to show off, and now it's more like you have your degree, you did it, you finished it. Um, and then you know, what about tax advantages? Is there is there anything that can be done with that too? Okay, you know, that that that or you know, look for that good stuff too. That something that can help us out here in the pocket.

SPEAKER_02 8:29

Exactly. So I'm sure you've seen those, you know, different uh videos and podcasts about how to make your child a millionaire.

SPEAKER_01 8:37

Yes.

SPEAKER_02 8:38

Well, this is one of the ways you can do that. Um and it also helps your personal taxes. Uh, you can hire your child, pay them, and then have them open up a Roth IRA to where you know they you know put a thousand to you know ten thousand dollars into um or not into the Roth, but into you know, you can pay them. Yeah, and they put the maximum IRA amount into a Roth IRA um each year. And you know, if you you know start that age five, when they can do you know the stamps and the envelopes and all that, um, and do it over the years, you can pay them through like age 18 to 20 and then let sit till they're 65 and they'll have a million dollars in their account invest if they invest in the SP 500. Now that's not financial advice, it's just how the numbers have run.

Reasonable Wages And Documentation

SPEAKER_01 9:30

Oh, that's an amazing idea. And and so there's no age minimum. I mean, it's it is a is there any like legal requirement like to this where you can issue them a payment? Or how does that all work if they're a child?

SPEAKER_02 9:47

So the way the IRS looks at it is it is it have to has to be a reasonable wage for the job they're doing. Um, and that's where it becomes a tough area because a lot of people you know pay their kids as models and actors, you know, on their um podcasts, on their uh commercials, you know, in their flyers, those type of things, and then you know the the wage range for that field is very high. Um on the you know, hourly basis for a kid, you know, um minimum wage is always safe. You know, if they work for an hour stamping envelopes, they can get you know$15 to$18 for minimum wage is. Um, or you can pay them what you know an admin would cost.

SPEAKER_01 10:34

Oh, that's yeah, these are great tips.

SPEAKER_02 10:36

And you can't just give them a you know exorbitant amount. Um, it has to be reasonable.

SPEAKER_01 10:42

So do you document it the normal way you would do it for any employee or independent contractor, or you would would you have to consider them an independent contractor?

SPEAKER_02 10:53

Or an employee. You can do it either way.

SPEAKER_01 10:55

Yeah.

SPEAKER_02 10:56

Um, but it is important that you have the documentation, same documentation you would have for an employee.

SPEAKER_01 11:01

So yeah. So then, you know, we hope that relationship says, well, our kids don't come back at us and say, hey, you know, I should have had a workers comp or something like that.

Filing, Dependents, And Recordkeeping

SPEAKER_02 11:12

Yeah. The other tax benefit of hiring your child is you know, one, you know, anything they make up to center deduction is not taxed. So it's basically a 0% tax rate. Um, whereas, you know, most parents have term 10% plus on their you know for a tax rate. So anything you pay your child, you save 10% automatically.

SPEAKER_01 11:36

Oh wow, I wonder too. And then how does that work too in your filing of taxes because they are uh uh dependent making money?

SPEAKER_02 11:45

Right. So um, but it's earned income. So you don't have to put on your tax return.

SPEAKER_01 11:51

Okay, oh this is yeah, this is these are great tips. And um, and then documenting it all, so you just do everything like I I know you touched on this already, but just keep the documentation like you would for any any employee.

SPEAKER_02 12:05

Yep. If they if they fill out an hourly sheet, you do that. Um I do a lot of you know pay by project.

SPEAKER_00 12:12

Okay.

SPEAKER_02 12:12

Like I pay, you know, a certain amount for shredding, um, pay a certain amount for stamping envelopes. Um, it's a little easier to keep track of than hour by hour throughout the year.

SPEAKER_01 12:22

So in the bookkeeping, you could just put it straight up like that, like that this was the project, and you know, that was the payout. And then and then they better not come back at us when they're ready to go to college for unemployment benefits.

SPEAKER_02 12:36

Right, yeah.

Entrepreneurial Mindset And Goals

SPEAKER_01 12:39

And then um, I mean, I know this is another this is the last question for you, and it it is more general, but yeah, I mean you can see this. I know your kids are still on the you know fairly younger side, but the benefits that you're seeing in like their own long-term goals and their plans for savings, are you seeing them like develop these more you know, elaborate plans for adulthood because of all this experience?

SPEAKER_02 13:05

You know, you know, as you saw in the podcast with Violet, um, she wants to be a hotel owner and she's already trying to save money to buy her first hotel. So it does give her that motivation and different mindset of entrepreneurship and not being afraid to go out and try something on their own. Because, you know, they've seen me start a couple different businesses and they've you know talked to other business owners and they see it's not something scary.

SPEAKER_01 13:33

Yeah, absolutely. And I I would think, you know, I think it's safe to assume too, they have a new respect for what dad and mom do because they can, you know, they see how everything is paid for, their home, their utilities, and all the fun stuff too, the extra fun stuff.

State-Specific Benefits And 529s

SPEAKER_02 13:50

Yeah. Um now, if anyone does go to hire their child for their their business, I would strongly suggest they talk to a uh tax planner or a tax professional because every state has different things as well that could benefit you. Um, like you know, here in the state of Colorado, there's a special 529 plan thing you can do for employees. Um, and other states have things as well. Um, there's also you know some uh things you can do, you know, paying towards college if they are in college, um, that's beneficial as well.

SPEAKER_01 14:26

Well, yeah, those are great tips. So they I mean they could truly invest in their own education.

SPEAKER_02 14:31

Yeah.

SPEAKER_01 14:33

Yeah, that's that's amazing. These are these are really wonderful tips. And is any of this available to you on your app? Any on the My Pocket Um FP app?

Resumes, Skills, And Readiness

SPEAKER_02 14:44

Yeah, no, we don't have anything specifically for this. Um you know, like I mentioned, it's kind of case by case um on how you would hire a child based on the business, based on you know where you're located, um, on how you could maximize it.

SPEAKER_01 15:00

Oh, and I want to throw this into Jason. So for your older daughter, too, had she already put together a resume and now she has experience, you know, great experience to add to that in addition to other things that she may have done.

SPEAKER_02 15:15

Right. Right now, um she is going to be taking a high school course that they do the resume and they do all that stuff, so she's waiting to take that course.

SPEAKER_01 15:24

But she's gonna have really good bullet points.

SPEAKER_02 15:26

Yes, and she, you know, she's doing volunteer work, she's playing sports, focusing on school. So right now she doesn't really have time for an outside job to need a resume.

SPEAKER_01 15:36

Yeah, but I imagine when that time comes, she's gonna be more than prepared.

SPEAKER_02 15:40

Exactly, yes.

SPEAKER_01 15:42

Well, Jason, thanks so much for explaining all this and setting a great example for other parents too. I think I I think we really appreciate hearing your perspective on all of this.

Closing And App CTA

SPEAKER_00 15:54

Thank you, Julie. Thanks for tuning in to My Pocket FP, where we believe small monthly changes can make big positive changes in your financial end game. If you're ready to level up your money game, head over to mypocketfp.com and download the app today. Your financial planner is now officially pocket sized and doesn't charge by the hour. Until next time, keep your goals high, your debt low, and your pockets smart.