What can a parent legally do with the money earned by their child?
A. That depends on where you live. In the State of California, they enacted the Coogan Law over 60 years ago which sets guidelines on money earned. New York and New Jersey also have a law similar to California’s Coogan Law but to a lesser degree. We cover laws and regulations in the Resource Center, but basically the Coogan Law requires that 15% of gross earnings must go into a blocked trust account in your child’s name. To check your state, please login to the Resource Center.
