How did it go from Wow Carlos Yulo to Poor Carlos Yulo?

The remarkable feat of our Filipino athlete winning a historic two gold medals at the Paris Olympics was sadly marred by news of family squabbles.  And while both sides offer different perspectives, many outsiders view it as rooted in one thing: money.

Unfortunately, this is not the first such story, and likely won’t be the last.  When it comes to money, not all family members respect boundaries, especially when the money is earned by their children or younger relatives.  Some parents and older family members assume that they have a share in the earnings, or worse, even to all of it.

When children are given the opportunity to make money, it is natural for parents to help handle their finances until they come of age.  But who checks on the parents?  And when the child becomes an adult, how do the money and control over it change hands?

The online community is full of opinions on what Yulo should do with his money, especially because the newly won gold medals will earn him quite a windfall including millions of pesos in cash, a multi-million residential condominium in a premium address, free domestic and international flights, even a lifetime supply of ramen.

Here are 5 things I would recommend, for our most gold bemedaled athlete in Olympic history, and for any income-earning child.

#1 All your earnings should go to your account

Let me debunk the myth that children cannot keep their money.  For one, if you walk into almost any bank today, they would offer accounts for children to teenagers to young adults.  So while children cannot make most of their money decisions, ideally, what money they earn should go into an account in their name.

Now, for practical reasons, parents can also set up accounts in trust of their children, or it could be a joint account.  But if the child is earning the money, putting it in the parent’s account is not the best move, unless there is another legal document that would cover ownership and accountability of said account.

#2 Any unauthorized withdrawals is theft

In the case of our bemedaled athlete, when he shared that some of his winnings were withdrawn from his account, without his knowledge, that was alarming. And when his mother later admitted having done so and that she moved it to her personal account for safekeeping, now that’s suspect.  Because when you take from someone’s bank account, and place it in your own account, without their consent, that actually meets the definition of theft.  

Now family relations can make such situations not so black and not so white.  It’s also possible that like our gold-winning athlete, some children would let it go, allowing their parents or relatives to keep the money and not involve the authorities.  Whatever you decide as a child or young adult, you should at least document the unauthorized withdrawal (or withdrawals), notify the bank/s concerned, and have the party who took it without the consent sign a document admitting to the action.  You may let this one go, but take steps for it not to happen again.

#3 On adulthood, open your own account and keep it private

When you turn 18, you should immediately open your own account and no one else needs to know about it except you.  To help keep the new account private, you can arrange for electronic statements so if you are still living with your parents, they won’t see your statements from your new bank.  You may also want to consider a totally new bank, not one known to your parents or relatives.  

If you’re like our Olympic-winning athlete, banks will welcome you with open arms.  Do your homework and get professional advice if possible where to open your account.  With your newfound fame, you may even be able to negotiate an endorsement deal with a bank, giving you more funds to park in your savings and to invest.

#4 Start cutting the financial apron strings

When you have set up your own account (or more than one), start looking at your older accounts, or the accounts of your parents that are receiving your earnings.  You need to inform the sources of your earnings that you have come of age, and all your earnings should now be paid to your newly-opened and fully-owned accounts. Or they should be issued in a check to your name, and your name only.

For this, you can write your own letters (and make sure they are received officially) or if substantial sums are involved or things are a bit more complicated, get a lawyer to draft the letters for you.  It’s very important for the letters to reflect date of effectivity, so if the companies continue to pay your parents’ or relatives’, depositing your income to their accounts, or your old joint-accounts, even after you have informed them, you can seek damages.

#5 Share your blessings on your own terms

Family will always be family, and it will be tough to just cut them off, especially when you have been the breadwinner for some time now, and continue to be blessed with income.  So think hard how you can help family without hurting your own financial future.

Remember that advice when you ride airplanes that in the event of an emergency, wear the oxygen mask first before you help others?  It’s the same thing with money.  Help yourself first so you will be in a position to help others.  And “help” others is the right verb here.  You are supposed to extend help, maybe make them a bit more comfortable, or treat them to occasional wants and luxuries.  But you are not supposed to provide for their living.  That will be quite a burden to carry, on young shoulders, no matter how many gold medals you’ve won.

Disclaimer: The views in this blog are those of the blogger and do not necessarily reflect the views of ABS-CBN Corp.