Kids ask the darnedest questions about money. And now they can ask them virtually in person. If you'd like us to answer your child's question, send it to us at moneysmartkids@kiplinger.com. Or make your kid a Web star: Upload your own video to YouTube and send us the link.
Here's a sampling of what's on kids minds. See Part I of this series, What Kids Want to Know About Money, for more of their questions and my answers.
EARNING MONEY
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
I'm trying to make money, but it is real hard for me to decide what I can do. What is the best option to make $600 in four weeks? -- Carmin
Where can I find a job that lets me make heaps of money and have fun at the same time? -- Jane
I am 11 and want to earn some money. People tell me I can wash this car or mop this floor, but I don't like jobs like that. -- Courtney
Last summer I had a job de-tasseling corn. But this summer I don't want to do a painful job. Plus, it took away my time to hang out with friends. I am 14, and dog-walking, gardening and babysitting are not my thing. I need a fun, easy job. -- Sami
Don't we all, Sami. Parents, there's a theme here: Kids want to earn a lot of money with a minimum of effort. You need to set them straight about how the job market works and suggest realistic ways they can pocket some dough.
SAVING AND INVESTING
My name is Rachel and I am 13 years old. I walk dogs and babysit, and my Mom makes me divide my money into thirds -- one-third for short-term wants, one-third in savings and one-third for long-term needs. I have $600 in regular savings now. Should I try investing in stocks or put my money into a certificate of deposit? I'd like to use some of it for a car when I am about 17.
Rachel, I'd stick with bank CDs. The stock market is too risky for money you're going to need in less than five years to buy that car. Use this tool to find the best CD rates.
I know a lot about stocks and mutual funds, but I am only 12 and I'm not made of money. What are some cheap ways to buy mutual funds or stocks? -- Danielle
Try a mutual fund with a low minimum deposit. Charles Schwab's index funds require an initial minimum of just $100, and they charge superlow annual fees. Schwab S&P 500 Index and Schwab Total Stock Market Index let you invest in the entire stock market. Another alternative: Monetta's Young Investor Fund, which you can also open with a minimum of $100. It comes with games and educational resources, plus a rewards plan for college tuition.
If you want to buy individual stocks, an ING ShareBuilder account charges a fee of just $4 per investment with no minimums.
I am 19 years old. How much money should I be saving per month to become a millionaire by 35? -- Anthony
Hmmm. I admire your ambition, Anthony, but you'd better rethink your time frame. Depending on your rate of return, you'd have to invest roughly $2,000 to $4,000 per month to reach your goal that quickly (see What Will It Take to Become a Millionaire?).
RETIREMENT
I am 18 years old and I have a good job making a good amount of money. I want to prepare for the future and was thinking about opening a Roth IRA. -- Pedro
Great idea, Pedro. As long as you have earned income from a job, in 2009 you can contribute up to $5,000 to a Roth IRA or the amount of your earnings, whichever is less (see Why You Need a Roth IRA).
-
The Stoic Retirement: Ancient Wisdom for Today's RealityA "Stoic retirement" doesn't mean depriving yourself. It's a character-based approach to life and aging that can bring calm and clarity.
-
My Teen Crashed His Car and Now Our Insurance Has Tripled. What Now?Dealing with the costly aftermath of a teen car accident is stressful. Here are your options for navigating it.
-
11 Outrageous Ways To Spend Money in RetirementWhether you have excess cash to spend or want to pretend, here’s a look at 11 ridiculous ways retirees can splurge.
-
Smart Strategies for Paying Your Child an AllowanceBy giving your kids money to spend and save, you’ll help them sharpen their financial skills at an early age.
-
How to Motivate Kids to Savepersonal finance It's not easy teaching your child to save. Here are some ways readers have incentivized their kids to keep track of their finances.
-
Lessons for Kids From the Crisissavings One of the greatest opportunities presented by the pandemic is to give children an appreciation for the workings of the economy.
-
Why Financial Education Workscollege Money skills learned young will pay off in the long run.
-
The Tooth Fairy Is Leaving Less Under Pillows These Dayssavings The average amount that the Tooth Fairy gives kids is down 10% from last year.
-
The Value Test: 300 Colleges That Pass
College Rankings All the schools on our list, from 1 to 300, are best values.
-
6 Ways to Get Your Kids to Do Chores Without Paying Themspending Kids shouldn't be paid for doing routine tasks, but for doing extra jobs that parents define as above and beyond.
-
Save $1 for College, Cut $2 in Debt
college Paying for college doesn't mean you have to take out thousands in student loans.
