When we talk about building generational wealth, most people think of passing down assets later in life.
But there’s a powerful strategy that lets you start shifting wealth today: hiring your kids in your business.
Here’s why it’s a game-changer:
1. Immediate Tax Benefits
When you legally hire your child to do age-appropriate work, you can deduct their wages as a business expense.
This reduces your taxable income — meaning you owe less to the IRS — and puts more money directly into your family’s hands.
In 2025, your child can earn up to $15,000 tax-free.
2. Early Financial Education
By earning their own money, your kids learn:
- How money is made (not just spent)
- How to manage income responsibly
- How to save and invest wisely
Financial literacy becomes part of their normal life — not something they have to figure out at 30.
3. Long-Term Wealth Growth
Imagine your child investing part of their paycheck each year starting at age 10:
- A Roth IRA funded with earned income could grow tax-free for decades.
- Early investing means massive compounding growth over their lifetime.
What you’re giving them isn’t just money — it’s a mindset of wealth.
4. Keeping Wealth Inside the Family
Instead of paying an outside employee for simple tasks (social media help, administrative support, organizing), you pay your kids — legally shifting income into your family’s circle.
Every dollar you keep inside the family strengthens your legacy. 🏡
How to Do It Right
- The work must be real and age-appropriate
- The pay must be reasonable for the tasks performed
- Keep proper records (timesheets, paystubs, W-2 if needed)
- Pay them from the right type of business structure (sole proprietor or LLC = even simpler)
Final Thought
Building generational wealth isn’t about waiting until you’re “rich enough.”
It’s about making smart moves now — teaching, empowering, and investing in the next generation early.
Your kids — and your future grandkids — will thank you. 🚀
