5 Things To Know When Your Child Turns 18
There are several things to know once your child turns 18, and I address the most important things in another post. However, it’s been a while since I wrote that post -it is all still applicable and important -but here are 5 more things to know when your child turns 18 that you need to know!
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5 Things To Know When Your Child Turns 18
There are so many things that our young adults need to know. Turning 18 is a big deal. And, here are several things that can arm them toward success in later years.
#1 More Things To Know When Your Child Turns 18: Soft skills
There are so many soft skills that our teens need to know. The best way for them to learn these skills is for us as parents to have expectations at home for chores and the way that they are accomplished. Also, the teenage years are great for part-time jobs.
Our boys each had summer jobs once they turned 15. All three worked through the school year in high school, depending on their sport schedules. Two of the three worked throughout their college school years in various part-time and full-time jobs.
Our third son is a student athlete, and he does not have time during the school year to work. However, he does receive scholarship money for playing, so we consider that a “job” since it helps to pay for his schooling.
Here are several soft skills that a job teaches: teamwork, problem-solving, adaptability, and emotional intelligence. Even things like being able to speak to other adults, look them in the eye, have a strong handshake, and understand that most problems can be solved with perseverance and thinking outside the box.
#2 More Things To Know When Your Child Turns 18: Custodial accounts now become theirs
Any UGMA or UTMA account now becomes theirs depending on a few things. These are accounts that are set up for minors that can hold cash, investments, and, in some cases, collectables. Depending on state law, when the child attains age 18 or 21, he or she assumes control of the account.
I just went through this with my almost 22-year-old son. We had saved money for his college education and had emptied all other college savings for him.
He had to set up his own account with the investment company so he could request that the correct amount be sent directly to his college. This would have been something I took care of before now, but now that he is legally an adult, it is now his responsibility.
#3 More Things To Know When Your Child Turns 18: You can still be a joint signer on their bank accounts
When kids are young, you will be on their accounts as the responsible adult. Once they reach adulthood, you can remain on their accounts. They may not want you to, but sometimes it comes in handy.
Each of our boys has had to save a minimum of three thousand dollars for spending money before each school year.
Our youngest son tries to save at least four thousand because the cost of living has gone up so dramatically. This money is for their own use during the school year. We pay for tuition, books, and housing. They pay for their fun money with this account, which is in a HYSA (high-yield savings account).
By staying on their accounts, I can easily transfer their money from account to account as it is needed. Yes, they could do this themselves, but until they are out of college, having us still on their accounts has been really helpful, and we have had several conversations about budgeting, overspending, and making good choices.
Final note: if your child decides that they no longer want you on their account, they just need to go by the bank and ask that you be removed, or just open a new account without you on it. Your specific financial institution may have a certain set of steps, so be sure to ask about this.
#4 More Things To Know When Your Child Turns 18: Set up a Roth
As soon as your child has any sort of earned income, they should set up a Roth IRA. This is a great savings tool. My husband had his own business when the kids were young (when they were about10), and they cleaned his office weekly and regularly filed papers for him.
Roth accounts are funded with after-tax dollars; they provide tax-free growth and withdrawals in retirement. Starting early maximizes decades of compound interest. Students should open one now. Paying taxes on their current, lower salary allows their money to grow and be withdrawn tax-free when they are in a higher tax bracket later in life. *Here is a quick visual article showing the power of compound interest over time.
They were paid a reasonable wage by the business. We allowed them to keep some of their earnings for fun things, but the bulk of their earnings went into their Roth.
We talked with them regularly and often about the power of savings and compound interest. Each of them had the goal of reaching ten thousand in their Roth by the time they were 21. They each made it, and then some. They continue to be good savers as adults.
#5 More Things To Know When Your Child Turns 18: Register to vote
I address the fact that an 18-year-old can vote, but I didn’t go into much detail in my original post about when your teen turns 18.
So, here is more information that you need to share with your now adult.
A person has to register to vote. They cannot just walk into any polling place and vote. They can go to Vote.gov to find out more. They need to know that there are various requirements for voting in different cities and states. If they go away to school, they will need to request an absentee ballot if they are serious about participating in elections.
I remember taking each of my boys when they first voted, and it was a really special event. Remind your teen to research both sides of each issue, and to listen to multiple points of view on different candidates.
Related posts for 5 More Things To Know When Your Child Turns 18:
What to Do if Your College Student Has a Medical Emergency
NPP Review of Mama Bear Legal Forms -if you have kids over the age of 18, please read!
When You Have an 18 Year-Old: Important Information to Have
5 Conversations To Have Before College
College Dorm Room Essentials – What Your Freshman Needs
Bible Verses to Encourage Your High School Senior
Surviving Senior Year Conversations as a Mom
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