Financial Planning for Your Child’s Earnings: What Every Parent Should Know
Jenn Boyce takes on a topic that might not feel so glamorous, but it’s one of the most important parts of having a working child actor: How do I handle the money stuff?
When your child starts working, even small jobs can add up, and it’s your job to make sure that money is protected, managed wisely, and used in a way that supports your child’s future. Here are some quick, clear tips to get you on the right track:
Set up a Coogan Account right away.
In California and a few other states, 15% of your child’s earnings must legally go into a blocked trust account called a Coogan Account. This money is protected until they’re 18. You can open one at most major banks or credit unions. No Coogan? No paycheck. So get this done early and keep it active.
Keep clean records.
Every job your child books is income. Keep a file (digital or paper) with pay stubs, W-9s, and contracts. Track all income and expenses—yes, even mileage to auditions and coaching receipts. It will help come tax time and keep you organized if you’re ever audited.
Hire a tax pro who understands the biz.
A regular accountant might not know how child actor taxes work. Look for someone who specializes in entertainment industry clients. It’s worth every penny to avoid mistakes and make the most of legal deductions.
Make a plan for the other 85%.
Only 15% is legally required to go into the Coogan Account—and you should not put all of your child’s money into that one account. The rest is up to you to manage wisely. Some families reinvest a portion into training, headshots, or travel for auditions. Others save for college or future needs. Consider putting part of it into a mutual fund or another investment account that can grow over time. The key is to be intentional with where it goes—don’t let it sit idle or disappear into everyday expenses.
Teach your child along the way.
Even young kids can start learning basic money lessons. “This job earned you $500. A portion goes into savings, a portion goes to taxes, and a portion helps pay for class.” When they understand where the money goes, they learn value, gratitude, and responsibility.
The money your child earns is theirs—your job is to protect it, manage it wisely, and help them grow into someone who knows how to handle it.
Your Hollywood Guide,
Jenn Boyce
Creator of The Hollywood Prep
