Is Putting money in a Savings account going to add up to be more then i really put in??(details inside)?

Question

Okay so im young (13) and started a savings account and going to put 100 dollars in it every month, I want to be RICH* when older and i have read donald trumps "how to get rich" and "rich dad poor dad" , "growing money" and have heard putting money in bank, saving money makes u rich over time. So lets say in about 10 years i have a total of 30,000 dollars in my savings account, will i have more then what i put in(like in other words will the bank add more money). I have heard about"credit score" or soemthing and i used this calcuator online sayingt hat if i put 50 dollars a month(im not i wil put more) and 15% of something(forgot) and in so ands so years i will have >>>>blank>>(example 3,000) amount of money.. and it was more then i would put in if i put 50 dollars a month. Please help me??

Answer 1

Generally speaking, if you put any amount of money into a savings account that bears interest, and leave it there, you will have more money coming out than if you had stuffed it under your mattress. That is the simplest explanation of investing.

The real question comes when you want your money to work harder for you. But all the other options bear risks because, as they say, there ain't no free lunch. So with every investment you have to assume risk. The greater the return you're seeking, the greater the risk. Since you're so young to can overcome a substantial loss, but there could be substantial gains to be had at enormous risk! Doesn't make you feel any better, though.

There are tons of different kinds of accounts that give you more than simple interest as a return. For example, I have my money in an Internet-only money market account with an independent out-of-state bank. I don't have very good access to my money, but the interest rate is so high (5.7%), why mess with it? And I only needed $100 to open the account (but it needs to be more to get interest). I *do* have access to my money, plus a good but safe rate of return.

At your age, I wouldn't start worrying about money. Wait until you have to pay rent, a car loan, a credit card, school loans, and on, and on... Save a little, but blow the rest on X-Box. Just be sure you engage in some physical exercise at least 30 minutes a day. You'll be way ahead of people around the world if you do that.

Answer 2

The 15% part is what makes all the difference.
Assuming a bank gives you a return of 15% every year, and assuming you let that ride on the account, than yes, you will be very very rich within the next 20 years from your 100 bucks.
In reality banks only give 2-3% return every year. and after 20 years your money is worth less than what it is today due to inflation.
Stock are what give you a high return rate and they are risky because the it may decrease in value.

Answer 3

you need to put your money in a good money market savings account. It has higher interest for your money. Stay away from credit cards and fica's (credit scores). It measures how much debt you have, not how wealthy you are. If you have the cash, then pay in cash. If you don't have the money then save up for it. Then you don't get any bills. You can pay for cars in cash and you can still get a house mortage if you show a good work history and a savings account and 10 percent down for a home. You are young and that is good. You have a long time to plan for your future.

look into daveramsey.com and he has great financial advice and a section for children too.

Answer 4

Start with 100 / month and as soon as you have 500 or so saved up, you can put it in a CD which will pay you more interest. The downside is that you'd have to pay a penalty go get your money before the CD matures (you get to pick how long the maturity period is). Once you save 2000 or so in your CDs, you may decide to invenst in stocks or bonds which can pay more interest.

Answer 5

Good for you. Ask your parents to help you set up a high yeild on line savings accound with INGdirect or HSBC direct. Keep saving. 100 a month may not make you "rich" but it WILL put you ahead of your peers when its time to go to college or whatever it is you want to do when you reach 18. And don't do what I did and spend it all, I used to be just like you, but I thought fancy clothes and electronics were more important than saving. They werent.

Answer 6

You generally earn interest in a savings account, but be careful that you get one that doesn't cost you a lot in fees. With interest, the bank pays you (usually, a small amount of) money because they are able to use your money to lend it out to other people for (usually, a large amount of) money.

Read 'personaly finance for dummies', and 'investing for dummies' - these books are great because they break down everything for you in detail.

Good luck, and keep up the great work...

Answer 7

if you r sure that you can deposit 100$ each month then a better option would be to go for a recurring account as they pay higher rate of interest than savings account. I dont know whether banks in your country has recurring account or not but just enquire