If you want to teach your kids a good life lesson about money, here you go! The next time your kid loses a tooth and places it under his or her pillow to get the riches they deserve for selling a body part on the black market to a mythical creature, be sure to take out taxes, college savings, tithing (if religious), and retirement.
I "kid" (pun intended) you not, when they tell you about how they got money under their pillow that night be sure to inform them that they owe you money for that income. Take out payroll taxes, withholding taxes, unemployment taxes, and any state or local taxes that you may have. You're probably looking at around 35%. They should be saving for retirement at 10-15%, along with the same amount for college, so make sure that's put into a savings account for them (your pocket). Tithing is generally around 10%, but maybe you can tell them that this is tax deductible. Or maybe they'll feel better if they drop $1 of their fairy money in the dish on Sunday?
The best part about this is that you can now keep this money, because like the federal government, the tooth fairy is a mythical creature, except it takes rather than gives. Now here is the really fun part! The next time you do this, look to see if they tell you about the money or if they just keep it. This might be an insight into their future character (keep your fingers crossed). If they don't, ask them where the money is. If they lie to you, just show them the W2 that the tooth fairy left with him.
My kids are going to be soooo screwed up! "Like" if you think I'm a jerk...
This website was created due to the atrociously misguided financial advice that I've heard over the decades. Financial freedom is not intellectually strenuous, but it takes discipline.