8d (edited) • General Discussion
Your Child Booked… Now Don’t Blow It
Here’s the truth nobody says out loud: The moment your child starts making money, you’re not just a parent anymore—you’re managing a business.
And most families lose money not because their child isn’t talented…but because there was no financial structure when the money showed up.
We’re not doing that. When your child starts to book, lock in these 3 power moves early so the money actually builds something.
💰 1. Run It Like a Business—Not a Piggy Bank
The biggest mistake? Treating checks like random income.
No. This is earned income in the entertainment industry.
Set up 3 simple lanes immediately:
- Taxes (25–30%) → Put it aside every time. No exceptions. This is providing you set up an LLC. If you allow the production company to use your child's name only as a work for hire/contractor on all paperwork, the IRS will take 40% of income and your child gets 60%. Yes, you can get some money back when you files taxes, but why do that and have to wait.
- Savings (Future Wealth) → This is your child’s long-term win
- Operating (Spending) → Classes, travel, reinvestment
If all the money goes into one account, it will get spent like one account.
Structure creates discipline. Discipline protects the money.
📊 2. Know Your Numbers or You’re Guessing
If you don’t track it, you don’t control it.
Keep it simple:
- Log every job and payment
- Track every expense tied to your child’s career
Why this matters:
- You’ll know if your child is actually profitable
- You can legally write off expenses (less taxes, more kept)
- You’re prepared if the IRS asks questions
Most families “feel” like they’re doing well… until they look at the numbers.
🛡️ 3. Protect the Money (This Is Where Most People Mess Up)
When income starts getting serious, this is your next level move:
Set up a Coogan Account (also called a blocked trust account)
Here’s what that means in plain English:
- A portion of your child’s earnings is legally protected
- The money is locked away for them until adulthood
- In some states, it’s required by law for child performers
Even if it’s not required where you are, smart families still do it.
Why this is a power move:
- It guarantees your child doesn’t grow up broke after working young
- It builds real wealth early
- It shows agents, managers, and industry pros that you run things the right way
Pair this with:
- A CPA who understands entertainment income
- A clear system of oversight (not emotional spending decisions)
🎯 Bottom Line:
Money coming in is not the win.
Keeping it, growing it, and protecting it—that’s the win.
Your child has the talent.Your job is to build the structure so that talent actually turns into something lasting.
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Your Child Booked… Now Don’t Blow It
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