Trump Hired and Paid His Kids — Should You?
Written by
Laura Beck
Edited by
Rebekah Evans
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When President Donald Trump brought his children into both his business empire and later his administration, it sparked plenty of debate. But putting politics aside, what can regular families learn about mixing business, money and family? GOBankingRates talked to an expert about when hiring and paying your kids makes sense — and when it doesn’t.
Ask the Right Questions First
“Making the decision to hire your children should be based on answers to a series of precursor individual binary questions,” explained Anthony Termini, RetireGuide expert and former family office manager. “Any ‘no’ answers, would in my opinion make it a bad idea to hire your kids.”
What are these make-or-break questions? Termini laid them out clearly:
- “Do you own or control the company?”
- “Does your child want to be involved in the company?”
- “Can your child perform competently in the role?”
- “Can your child demonstrate an ability to excel well beyond that of other candidates seeking the position?”
- “Will hiring your child boost morale?”
It’s Your Business, But Is It Good Business?
While the Trump children took on major roles in both private business and public service, most families are thinking on a much smaller scale. “The reality is that a family business is a family business,” Termini said. “So there’s nothing wrong with having family members involved, from entry level to supervisory roles, management positions and then as executives.”
But here’s the catch: “If it’s your business, then it hardly matters if the decision to hire your kids is economically sound,” Termini said. “But if you aren’t the owner, then there are plenty of landmines making it a bad business decision.”
Not Every Family Success Story Is Like the Trumps
Interestingly, Termini shared his own contrasting experience: “I ran a family office, where, thankfully, none of the kids wanted to be involved in any of the businesses,” he said. Sometimes, the best family business decision is to keep family and business separate.
Weigh the Pros and Cons Wisely
Whether you’re running a multi-billion dollar empire like Trump or a small local business, hiring your kids is a decision that needs careful thought. Make sure your answers to those key questions are all “yes” before bringing your children on board — no matter how tempting those family tax benefits might be.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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