As you saw in Principle 9: Mind Games, Your Financial Personality, and Your Money, much of your approach to money is determined by your Financial Personality. When some of us get money, it’s gone in no time – others have the ability to look into the future and save.
It’s hard to say in advance who might handle their money well and who might not. For child actors, it is even more of a problem. Their future financial security is dictated by what their parents or financial planners do with their earnings – and it doesn’t always end pretty as the article “Financial Mismanagement: Child Stars Who Lost it All” shows.
One of today’s child stars is Honey Boo Boo from the hit TLS reality show “Here Comes Honey Boo Boo.” If you’ve seen the show, you might not have that much confidence in Mama June’s ability to handle Honey Boo Boo’s money – but you’re wrong. Apparently Mama June is one of those people born with a great financial personality.
According to the article “Mama June Sets Up Trust Fund For Honey Boo Boo & Daughters,” Mama June recently told TMZ that the family receives between $15,000 – $20,000 per episode, and this is divided equally into accounts for the children: Alana “Honey Boo Boo” Thompson, 7; Lauryn, 12; Jessica, 15; Anna, 18, and baby Kaitlyn, and that “TLC puts the money into the girls’ trust accounts for me and then I get an e-mail telling me how much everyone gets. I want my kids to look back and say, ‘Mama played it smart. Not like those other reality TV people.’” Mama June when on to say, “You’re never gonna see me drive a Range Rover or a Mercedes. I’ll drive one if someone else pays for it. Never gonna live above my means.” You’ve gotta like Mama June!
- After reading Principal 9 Mind Games, Your Financial Personality and Your Money in Chapter 1 of Turning Money Into Wealth, can you think of some things from your childhood that might have had an effect on how you handle your money?
- If Mama June puts $4,000 into a trust fund at the end of each year for the next 5 years for Honey Boo Boo, then nothing after that, how much will it be for Honey Boo Boo have in 15 years if it grows at 9% per year? (hint: let a $4,000 annuity (PMT) grow at 9% per year for 5 years, then determine how much it’s grown to – next, take that amount (now it’s just a lump sum amount, no longer an annuity) and let it grow for 10 years at 9%.)