In a video posted on her streaming channel, Christy Romano explained to her followers how she emerged from a financial rut that almost bankrupted her.
Romano’s explanation was no-holds-barred. She shared how most of the money from her childhood Disney stardom went down the drain. The TV star also walked whoever cares to know through how she escaped financial uncertainties.
The Tales of a Grown Child Actor
The 40-year-old Romano is no stranger to fame, as she has been a Hollywood star since childhood. So, assuming the role of a financial mentor for kids suits the Kim-Possible star just fine.
Romano also featured as a child actor on national tours of Disney Broadway shows like Sound of Music. She is now a mother of two and is still active in the entertainment industry.
Growing Up In the Spotlight
However, this piece is about a self-made video by Romano detailing her financial journey and how she acclimatized to the dazzling fame of Hollywood and escaped a life of unaccountable spending.
In the 10-minute video, Romano explained how she started making money as an actress at 15 and what transpired afterward.
Enriched by the Coogan Law
Luckily for Romano, there is a law, the Coogan law, that puts a cap on what parents can do with the wealth of child actors. This law first went into law in the state of California.
With the financial autonomy the Coogan law afforded young Romano, she spent money on many youthful profligacies, some of which were mentioned in the video.
How Child Actors Are Paid
Romano explained that Hollywood child actors are paid weekly and can negotiate their earnings for shooting each episode of the shows they appear on.
According to Romano, the negotiations make it essential for each child actor to have an agent that fronts for them. Such representation eliminates the possibility of exploitation.
Riches Does Not Last Forever, Takes Active Effort to Maintain
Also, Romano mentioned that her young self thought the money would unceasingly keep flowing. Interestingly, her parents and agent even reinforced this supposition. However, Romano later found this assumption to be untrue.
Agents can renegotiate royalty payments for the young actors they represent after filming ends. However, that stops after a certain period.
How It Could Have Gone Better
Romano explained that though the royalty payment is often fixed, the value tends to taper off by about 10% of the previous value until the child actor finally stops receiving payments.
Romano regrets not using her money better by investing it in real estate or putting it away in a high-yield savings account. She often reminisces about the impulsive purchases she made in her youthful days.
Investing In a Formal Education
One good decision Romano remembered making as a youth was attending college. At 18, she was left with only the savings in her Coogan account and opted to channel it into financing her college education.
At the very least, using her money to facilitate the award of a degree eliminates the expense of servicing a student loan debt.
Spinning Outta Control!
Unfortunately, Romano dropped out of college in her second year and only returned after clocking 30. The Emmy Awards nominee is now 40, with two kids who she’s very proud of.
However, she explained in her video that she would have done things differently if she knew things she knows now. She also listed some of the expensive purchases she splurged on.
How Not to Paint the Town Red
After dropping out of college and having all the money from her Coogan account sitting on her lap, Romano opted to go on a spending spree. In the video, she acknowledged her lack of financial education during her youthful years.
Once the young Romano fancied an item, she went for it and made it hers in exchange for money. It didn’t matter to her if it was downright expensive or the purchase in itself unnecessary.
Money Is a Two-edged Sword, Can Either Emancipate Or Destroy
To the naive version of Romano, money became a key to accessing whatever came under the radar of her craving. At this point in the video, the adult movie star advised parents to help their kids correlate money to the value it creates and the potential it possesses.
In adulthood, Romano would harp on parents’ need to help their wards develop a healthy relationship with money.
How Money Strained Romano’s Filial Relationship
Romano further explained that she parted ways with her family at 21 for about a year. According to her, she did not like how her money was being managed.
After taking charge of her finances at 21, Romano then started making responsible connections with her wealth. It was at this point that she started making a string of heavy purchases.
Money Should Be a Tool, Not the Core of Life
In her young life, Romano saw money as a great validator. That age was a time of personality moulding for most young people, and the talented actress saw it as a time to affirm what people thought of her.
Miss Romano started by patronizing luxury brands. She even bought a Mercedes-Benz G-Wagon, which was very expensive to maintain.
How to Make a Million Dollars and Lose It All
Miss Romano explained that she earned over a million dollars from deals and endorsements at 21. However, thanks to her extravagant and propped-up life, it soon fizzled away without having anything tangible to show.
At this point, young Miss Romano got a wake-up call as her funds began to tank.
Getting Vulnerable to Help Others Learn
Towards the end of the video, Romano advised child actors to learn as much as they could about money and how to develop a healthy relationship with it. She also quickly referenced the “$3 million net worth” report she read online.
In closing, Romano said she is by no means a millionaire. The video was an expose, to help young actors live in better ‘fluency’ with their money.