He’s had a few people ask his price for a half or full cord and his answer has been “I can’t make enough firewood to sell that much to one person.” Through conversations I’ve had with him, he knows he makes a lot more selling it in small quantities vs how I sell my cords. Even though he’s motivated (for a 9yo) it took some pushing from both myself and my wife this past winter to make sure he stock piled enough to keep his stand stocked and his customers happy. There were days he just didn’t want to split or stack and that’s when we would go out and help him for a little bit. He says he wants to sell cords when he gets older but knows he can’t handle that volume yet.
My final comments on this for the night: I’ve enjoyed hearing others perspective even though I may not agree with them fully. It still rubbed me the wrong way but I certainly won’t lose sleep over it. It brought up a memory of a guy a year or two ago asking over the phone if I could do any better on my price for 2 cords delivered. There was silence on the other end when I asked him “better for who?” Haha. I did have a conversation with my son about it this afternoon. I asked if he would have given a discount if I wasn’t there to do the talking for him. His response was a quick no. When asked why, he said I sell it too fast to give discounts. (Yes, smart kid I said in my mind!) I then took it further and asked what if the guy said he didn’t have much money and his house was cold. He then replied “ I don’t know.” I explained to him some people may just say that to get a deal but others may truly mean and it’s hard to know what’s right in that moment. I followed it up with “you come find me or mom and we will make that decision.”
Got it. In my original thoughts, I was giving him the benefit of the doubt...as in trying to buy in bulk from a commercial dealer for a better deal.
Sorry to not get involved in the fray here but on another note....(I used to be a financial advisor) if your son is selling firewood and making money he legitimately has what the IRS calls “earned income” ...which qualifies him to contribute to an IRA (Individual Retirement Account). Open a Roth IRA for him now and have him even put a few hundred dollars in every year and start teaching him now. Invested in a good mutual fund and with the power of compounding starting at this early age it won’t take much money to grow to over a million by the time he is 60. He will be a rich old man with minimal investment. Look into it and find out about IRAs for minors.
Great advice. My wife and I just went through Financial Peace University. I wish I knew at 18, what I know now. We already have both kids getting their emergency fund together and are looking into accounts for them to start building wealth and get compound interest. Those early years extra interest adds up to huge numbers as Timberdog pointed out. I bet JRider has already looked into this though. He seems like not only a good dad, but also an on-top-of things kinda guy.
We tried to get our boys off on the right foot with planning for the future using investments. When they got married, they found other uses for the money and sold it. They were still at the age where dear old dad didn't know anything and I couldn't tell them anything.
That’s why you do it in an IRA. Not entirely protected from that but early withdrawals are penalized and taxed. An added obstacle making you think twice before using it too early. But regardless, all you can do as a parent is lead the horse to the water.
Great program! My wife and I went through the class in 2008 if I remember right. Good principals to follow. Now working on baby step 4,5, and 7 twelve plus years later! It’s been a blessing. Kinda hard to get a kid to appreciate an ira instead of a new truck, but you’re right on with the advice! Always nice running into fellow financial peacers
No need to apologize. I have a good friend who works for an investment company. We opened his accounts through her back in April. We fully trust her and have 100% input/access to his money. Her goal is a 10% gain but so far he has seen an almost 30% return. I will show him at least every few weeks how his money has done. I make sure to show him the good days and the bad days. This kid will be in a great spot financially when he graduates high school. I just hope he's not young and dumb with it at that age!
My dad in his 70's would still freak out on me to this day if I bought anything from a roadside stand without trying to barter for a better price no matter if it's a kid or adult selling.
Some folks have a culture of bartering and are almost offended if that little dance is not joined. A lot of Americans, in certain areas, find it impolite to barter. My father (a native Vermonter) never bartered at all.......ever. If he didn't like the price, he just moved on. Different horses for different courses.
Very nice setup your boy has rider. i'll keep my comments about about the guy in the yuppy mobile to myself.
