Question

He got a job!  Whoop!He got a job! Whoop! Whoop! Backstory: We welcomed a 17. 5yo student into our home last November. (Hubs is a principal and one of his students needed a new foster placement. ) Anyway, we’re working all the angles on getting him prepared for “the real world”. He turns 18 in July, but will not age-out of foster care until 19 in our state(Nebraska). That being said, he’s motivated to begin budgeting. At the moment, he has zero actual expenses, as the stipend covers all basics and lots left for extras. So, for a kid who has no expenses and now a full-time job, what are some good things for him to begin planning for? He plans to work full-time while he finishes high school in the fall. (He’ll go to school in the am). He is also kicking around the idea of joining the military. It will seem like a lot of money. but we need to get into sinking funds buckets and to help him realize how expensive life really is. So far: Vehicle: $4-5K Rent: First month, last month, deposit Vehicle maintenance- Insurance, oil, gas What else? Start saving a furniture fund? Invest some of it?  

Answer 1

I just like to take the time to THANK YOU & your husband for taking this young teen in. I myself just existed out of foster care , and boy is it hard . It’s nothing like having a support system coming from that background. I would honestly look into more programs available to him. A non profit furnished my whole home. When he goes to college, there are countless programs that will help him financially along with being his support system. I would just have him save his money in a high interest savings account. Unfortunately I didn’t have foster parents. After leaving a group home , I went into a non profit organization who helped me get my own place . They paved the way for me & I lived by specific guidelines. My rent was only $150 for a 1bd apt. The money they took for “rent” was put into a savings account. I would always give more since I had a decent job. After 2 1/2 yrs of living there I walked away with 14k . I was able to fall back on that money when I found myself in hard times . It was a blessing .  

Comments

@chu20 Wow. Thank you so much for this info. All the best to you on your journey.  

Answer 2

Furniture fund for sure. It adds up quickly even if you shop second hand  

Answer 3

Never too early to start an IRA or 401k if his employer offers one! Good luck to him! ❤️

Answer 4

Yes save for furniture! and all other things for a place. That was my biggest expense moving out.  

Answer 5

Things to think about if he goes into the military: he will need funds to be able to come home and visit/travel for fun. I would also start saving for household goods, especially if he doesn’t go into the military. Or, start investing in some pieces now that can be stored/saved.  

Answer 6

Funny enough, start saving for retirement!  

Answer 7

Vehicle maintenance and insurance, renter’s insurance, and a furniture fund for sure.  

Answer 8

Start a furniture/house stuff fund. And offer to take him shopping one weekend and see if you can find kitchen ware on clearance. Then he can spend $10-$20 on stuff now and store it in his closet until it’s needed. Also a ‘baby’ emergency fund of $500ish (or more depending on what you all decide is best) would be good to start now.  

Comments

Adding on: my sister started buying kitchen stuff when she was 16 and she didn’t move out until she was 20  stuff like a coffee pot, pots and pans, cooking utensils, silverware and plates.  

Answer 9

He should start an IRA right away. Show him this chart. Saving the same amount of money each month, starting at 25 vs 35

Answer 10

Might seem obvious, but an emergency fund!  

Answer 11

Military is a great option. I joined at 18 and never looked back.  

Comments

@anallese9 same! It was, hands down, the best decision I ever made. 20 years later and I still apply the skills and values learned in the military in my corporate job and everyday life.  

Answer 12

If he decides to enter the military all of this will be good prep. (My son went into the Marines straight from H. S. ) Much of what they earn is spending money in the beginning as they are required to live on base. They will help him set up retirement-bank accounts, etc. He will watch others overspend and be confronted with loneliness and choices. They all want to get married because they can get extra $ and live off base. ‍♀️ (he’ll call you and text after basic for all the decisions) It was a great 5 years for my son. He went to college on the GI bill and has zero debt.  

Answer 13

Have him start saving a grocery fund, emergency fund, if he plans to attend college/books, furniture, vacation, etc. he might as well start saving for as much as he can so he can enjoy life at the same time. Never hurts to start learning early! The military is a great idea. It really is a family away from home. He can get schooling paid for, room and board, travel the world, etc. We were a military family. Kudos to you and your husband fostering isn’t always easy. Good luck to your “son”.  

Answer 14

My rule for my daughter when she started working was 50% into savings. She has car insurance to pay for and allots herself money for gas and maintenance every month. She also uses Apple Pay for fuel to pay at the pump and puts $75 a month to it. She saved and paid full tuition for her first semester at college out of pocket. She doesn’t pay us rent cause she assists us in ways that saves her money. If she wants to make dinner she buys the food for it and makes it. She saved money for a trip she wanted to take last year. Just depends what you feel are important values to teach him to save for.  

Answer 15

Household needs/goods Utilities Insurance - renters/vehicle Cell Saving

Answer 16

I would almost have him go the DR route of kids saving (give, save, spend). If you’re budgeting, have him help with the monthly budgets so he knows how it works. Or let him do mock budgets based on he income. Since his future is still kind of up in the air post high school, i would let him pile up the savings while he can and then decide how to dole it out once he knows the direction he’s headed.  

Answer 17

Roth401k. even $20/paycheck or a month will make a difference! And. the kid needs some adventure. vacations! And, some good bedsheets and towels! He deserves all the good! Love to you and prayers for his success!  

Answer 18

Medical fund, furniture, things for apartment, clothing fund, basic toiletries, etc

Answer 19

I work one of my states programs for youth aging out of care, and should he chose not to go into the military, he will qualify for a housing choice voucher known as the Family Unification Voucher offered to previous youth who were in care, and I would be worth looking into as the program is through HUD but administered through the different states! Other than that, he should also qualify for some independent living services who can also help him with preparing for goals and other options. I would focus on money for utilities. In working with the youth I do, I’ve learned it’s so much more expensive to turn on utilities when you have 0 credit and no one to co-sign for you.  

Comments

There’s another program called the Family Self Sufficiency program offered by HUD that helps prior youth in care save, and qualify for homeownership by matching savings and providing other case management services! They have an extremely high success rate, but is unfortunately very underutilized because youth just want to be done and away from these systems which is completely understandable

Answer 20

Furniture and decor will be a good idea. Emergency fund Will he have health insurance? I just paid $550 for medicine (3 month supply)  

Answer 21

Well if he goes into the military rent is completely paid so  and if he’s not on base/post he won’t need a car really

Answer 22

I joined the military at 17 best decision ever. It taught me and molded me into the responsible adult I am now. If he is planning to join I would consider saving for a reliable car. If he joins the military and is single the barracks are paid for and so in his insurance! Plus it'll help with school if he decides to want to go later. I would highly suggest starting sinking funds for stuff he can pay off in a lump sum

Answer 23

If he goes into military he won’t need to budget for health insurance, housing, or furniture  (choose marines hehe)

Answer 24

If he has the personality for it I say go for the military! I'm an Army brat myself and my dad says the military was the best choice for him. He retired after 20 years and used his GI Bill to pay for his Bachelor's and Master's degrees. He currently teaches JROTC at a high school. When he's at retirement age he'll have 2 retirement check and social security coming in. Plus he'll get the benefit of traveling all over the world.  

Answer 25

Furniture/decor would be a good one Electronics Health care/expenses Having enough for setting himself up for a solid pantry of food and cleaning items when he moves out I second trying to have him pick up things now/after back to school sales as you can find a TON of clearanced items to use for an apartment or dorm! Also thank you for opening your home to him  

Answer 26

Military he will live in barracks most likely so no need for rent unless he moves out to rent. he wont have insurance costs. just other basics, food, bills (car, internet, phone, fun, misc).  

Answer 27

Congratulations to him for getting the job! I would add saving for -an emergency fund -household goods (furniture, pots & pans, etc) -groceries/ personal hygiene products -insurance: medical, dental, vision If he joins the military, he will not need the medical, dental, and vision insurances

Answer 28

Savings, investing, clothing, home and tithing (or charities) he should absolutely plan to fully fund his Roth. He should go with vanguard low fees) and pick a mutual index fund that covers the entire stock market. If he starts saving the max now when he retires he would have millions. Saving for a home would be a long term goal so he can put something now. General savings could be for his future goals he hasn't articulated yet ie travel, grad school. Tithing is self explanatory and if it's not a part of his faith then a charitable contribution

Answer 29

He should also qualify for in state tuition for free! If he wants the military, he should take advantage of the tuition first and then go military as an officer. In Texas, the kids have to take at least 3 or 6 hours before their 25th bday (I think that's the right numbers) ir they will never be eligible for the tuition reimbursements for former foster youth. I'm a CPS investigator so I learned briefly about the benefits, but it's not what I do daily so I dont remember specifics :)

Comments

@ethnic depends on the state. In Ohio there is little college help for kids who were in foster care or adopted. I got a few grants, but they barely covered anything.  

Answer 30

Have him invest a certain amount of his paycheck into a Roth IRA! It’s so important and a lot of younger people forget about it!  

Answer 31

Budget for food and spending money maybe even one for dating.  

Answer 32

Investments, college or trade school, a nest egg for the future in general. I mean I think it would depend on his goals.  

Answer 33

Don’t forget vacation and fun things. The joys of living life. Can’t forget those along with the real life downers like adulting.  

Answer 34

Emergency fund of 3 months of expenses for his first apartment. Can you imagine moving into your first place with an emergency fund like that?  

Answer 35

What state are you in? He should hopefully be able to access some funds and assistance from the state being in foster care. They may be able to help him with some of those things related to getting his own place, or refer him to an agency that can!  

Answer 36

Maybe get him used to paying rent & utilities now, but you could put that back into an account for him to have when he moves out. also saving for a decent phone if he doesn’t have one and a phone bill! maybe even a laptop depending on if he needs it if he decides to continue with school or not

Answer 37

Utilities including a cell phone

Answer 38

Utilities deposits in some places for new people or those with no or poor credit.  

Answer 39

Can you start saving the extra stipend for first/last rent, car down payment, EF etc?  

Answer 40

I’d start putting some into an investment account (401k or Roth). He literally can’t do anything better for his future self than starting to invest now.  

Answer 41

Savings for medical bills

Answer 42

Budget for the expenses he would have if he didnt join the military. If he decides to join, put all those (rent/deposit, furniture, etc. ) Into an investment account such as a Roth ira, and stress the importance of adding to it even if the military gets him retirement benefits.  

Answer 43

At least three month of rent an utilities

Answer 44

My husband started investing early and that has really served him well. He also went to college while being in the Marines and has had a great life. He doesn’t budget like this group does now but he definitely set aside a savings account and an investment account and would have rather not eaten fancy or gone out then not have met his contribution goals of maxing out his Roth IRA and his personal savings. If he wants to talk through how to start investing- get him set up with a financial advisor or for some general advice from someone who has been successful at it and just to have another person’s perspective, he can FaceTime my husband ‍♀️

Answer 45

Cell phone, food and clothing.  

Answer 46

College or trade school tuition

Answer 47

My single greatest piece of advice for young kids is to save enough money to buy a 2-3 family home. (You only need 3% of the purchase price if you have good credit. ) Then, he would live in the smallest apartment in the home and rent out the other sides. His renters will pay the majority of his mortgage/utilities so he 1) is living almost for free because the renters are paying his mortgage and 2) is building equity in a home that is appreciating. Later, this snowballs because he can leverage this property to buy others! It’s an excellent way to start building wealth at a young age!  

Answer 48

Definitely include an emergency fund, and for sure furniture! It’s expensive to get a place set up. unless he joins the military then he can just save that money till he needs it.  

Answer 49

My husband joined the Marines! Best decision he had made for our family! If he needs someone to talk to about any military questions before talking to a specific branch feel free to reach out! We have almost every branch in our family!  

Answer 50

6 mos expenses

Answer 51

Have him get a phone and start paying it. Pay rent and such to you guys but you can save it to give back to him once he moves out. This way its a savings as well for him. Have him pay for groceries. reimburse him if youd like.  

Answer 52

Emergency fund

Answer 53

I will be gifting my son a financial advisor consultation for his birthday so he can know what to do with his money. Retirement, home, future new car, basically investing on his future bigger purchases/goals.  

Answer 54

Along the lines of rent, don’t forget about utility deposits, and it wouldn’t be a bad idea to have a month worth of payments saved away. Also money for movers, furniture and all the “stuff” he might need. For a vehicle, I’d also start a maintenance sinking fund for oil changes, tire rotations and registration fees.  

Answer 55

Emergency Medical Pet Child House deposit Phone Electricity

Answer 56

I did this kind of thing when I was in high school! The best thing I did before I graduated was buying a reliable car. I was driving a 2002 bug that only started about half the time, but a few months before graduation I had enough saved to buy a 2013 that is with me today. I had a couple times where I thought homelessness would be a possibility, but my saving grace was always thinking “at least I have a car”. For rent, I suggest having more than first, last, and deposit. That’s usually required up front, which will leave no wiggle room. I would add in another month or two. Have him get his own phone plan when he turns 18 so he can start building credit. Then see if (when he has enough money to pay it back) he can get a small personal loan to continue building credit. I don’t know if it goes against the rules of fostering, but my parents made me start paying them “rent” when I turned 18. It was $200 a month, and when I moved out they have it back to me and I had $2400 that I didn’t know about and wasn’t expecting. With him being fostered, I don’t know if you would be able to do that or not. Maybe go about it a different way and make that the emergency fund and let him watch it grow. Side note- whether he joins the military or not (but especially if he does) PLEASE make sure he understands how the real world works before turning him loose. Let him sit with you while you pay bills, take him with you to the bank when you fill out deposit slips, make sure he knows how to write a check and file his taxes. If he does join the military, he’ll be living in the barracks getting a paycheck with almost no expenses so it’s very easy to go astray and start spending money on stupid stuff and lose your savings

Answer 57

Furniture fund I would encourage him to have a down payment on house sinking fund. That way its already in his mind and at this age 20. 00 a month would be okay. Id go over all your utilities with him. And recommend saving for a year. How much do yours add up to monthly. Basically automatically put him into baby step 3 before he moves out.  

Answer 58

I'd say that's a good start, plus with military he will get housing covered and as a single Male he can do the meal plan! What a great thing you are doing for him ! Molitary will also pay for school too.  

Answer 59

Utilities he may need a deposit but also having a month or two saved up will help. That way if something unexpected happens he won't have to stress. Water, electric, gas, TV or internet, cell, Laundry. Also start up supplies: Cleaners Broom Vaccum Trash bags Dish soap Hand soap Sponges Dishes Silverware Bedding Towels Tin foil Plastic wrap Table and chairs Couch Bed Tv TV stand Dresser Food staples Food Shower curtain Hangers Laundry soap Dryer sheets Starter tool set Curtains Rugs Shoe racks Coffee table Shower rod Plunger Toilet bowl brush Band-Aids Storage containers I went through and set budgets on each item so I knew how much I needed to save. I made a excel page and it helped list amounts and check off as I bought. I also opened a storage unit and started to get things before I even moved. Garage sales helped get some stuff cheaper. Also check out estate sales and church sales.  

Answer 60

An overall goal is to always save 10% of gross before expenses. The group SAVE10 is an excellent resource. Teach him to always live below his means and to always save first.  

Answer 61

Forget the furniture fund.  

Answer 62

Emergency Fund 1st!  

Answer 63

Food, emergency fund/6 months living expenses, utilities, cellphone/internet/tv/streaming [pros and cons], retirement, vehicle maintenance, fun money. cleaning supplies. For furniture fund I would keep that for when he has a house (so if he wants a house/property, he will need a deposit saved as well as home maintenance and several months estimated mortgage payments), and set a limit to no more than $40 per piece of furniture and go with second hand. (Except for mattresses. I would save for a new mattress)

Answer 64

I think put 15% into a retirement fund. The earlier he gets in the habit of automatically saving 15% of his income for that, the more secure he’ll be long-term.  

Answer 65

Emergency fund

Answer 66

Fun fund or something similar. He will naturally want to travel and just enjoy life and some of that money should be specifically allocated to that. Especially if he goes into the military. When he goes on leave he will want to learn to save to do that. And even now that can go towards prom expenses or something