Money Smarts?

Question

I am a 16 year old highschool student with no credit card, bank account or anything of that manner. I will entering the "adult" world in a few years and I'd really like some tips on having great credit from more experienced individuals. What should my goals be? How can I keep and maintain good credit? What are some of the best choices in investing? Please tell me anything you can because a lot of this money saving information is very confusing when read on the internet, I'd like a more personal response from someone with experience. Thanx!

Answer 1

Smart Kid! You are 10 steps ahead of your peers.
1. Learn the rule of 72. (look it up on the internet)
2. Understand compound interest how you pay it, and how you RECEIVE IT.
3. Join any 401K or retirement in every job you ever take, and put in the max amount.
4. Begin a self directed IRA as soon as you can afford it. (you are eligible once you have income). You can put I think up to 3K into it per year.
5. Go learn about tax certificate sales. You may pay 1200 to pay someones property tax, and then make 5% interest on it. YOU always get paid back. Always.
6. Get a credit card when you are 18. Pay off the blanace every month to begin with. Later let it grow and then pay it off over a few months.
7. Put 1000 in the bank. Borrow 1000 from the bank. (secured loan). Make the payments. It will build the credit report.
Shoot for 3 accounts on the credit report.
never ever ever be late on your payments. EVER.
SAve more than you spend.
Again, save more than you spend.
If you do this now, by the time you are 18 you will have a considerable amount of money.
Think of how this will compound every year and grow.
Take this very very seriously.
REad all of the Rich Dad Poor Dad books.
Read Suze Orman.
Read
Read
Read
Congratulations. I wish I was as smart as you are when I was 16.

Answer 2

From my personal experience, I learned and currently is learning from mentors- Donald Trump and Robert Kiyosaki.
Things to avoid to keep great credit.

1.Credit Cards -Do not apply for credit cards until you are at least 25. Credit cards are good to for making large purchases such as Refrigerators, Stoves, Down Payment on a Car, or Home.
Most of us tend to use them for making small purchases and paying the minimum at a higher interest rate
2. Stay away from pay day loans/title stores. DO it make sense when you have no money, but go and borrow money until you get some money that you would have to pay back. You would be back at square one, except now you have to budget what's left until your next pay period.
3. Cell phones are another necessity that can place a damper on your credit. If you stick with your plan and do not go over the limits, you should be fine.
4. Never ever ever, co-sign for anyone. If you do, and the person stop paying, guess who they will come after?
5. Do not let anyone have access to your personal information.
Social Security and one day, Checking/Savings Account.

Some banks offer an account for people like yourself, it is something an adult in your family can start for you with anywher from .25-$25.00 and each month you make a small contribution and by your 18th birthday you will have full access.
Check with CharterOne, I know they once had something called the Small Fortune accounts.

All in all, to maintain your credit and keep your score in high standings
Do not apply for a lot of stuff, the more you apply the less your ratings become. Pay any existing bills on time.
Keep a good credit rating and the world can be yours.
I listed some sites you can go on that caters to information for Tweens
Good Luck

Answer 3

Start saving as soon as you can.

Spend less than you make.

Shop around at different banks and credit union for savings and checking accounts that offer better deals and interest.

Perhaps use an e-bank, such as ING, for savings becase they usually have better interest rates.

If you do get a credit card, use it to your advantage. Pay your entire balance each month so you don't have any interest payments and get one that offers cash back. Don't get a card that you have to pay a yearly fee for.

Start a ROTH IRA

When you invest, pay attention to fees as they will eat into your investments.

If your parents have good credit and are willing, ask them to put you as a user on one of their credit cards and that will start your credit history without you having to do anything.

Answer 4

try with(marathon, bp etc) gas cards that you pay off monthly, even if you have no balance it still shows good on your credit report.
or start with like a store credit(jcpenney, sears), buy one thing pay it off, then get something else real small and affordable, these add up on your credit report. dont go all out, you have to be reasonable.
rent a centers are good also. if you get a tv, pay it off over a few months, get something else that you canpay off in the allotted time.

if you have a vehicle in your name, put it as collateral for a small loan that you can pay off without touching the money you got as a loan, put in bank draw interest. like 1,000 dollars, have it paid off in 2 years. you have money in the bank, credit established at a bank, two birds with one stone. only do things as you can afford.

Answer 5

Thinking about it is really smart. you need to understand "there is nothing free". Everything has a price. At 16, there will be lot of peer pressure to buy stuff just because someone got it or it is cool.. if you can control that temtation you will go a long way through your life. You need know the difference between NEED (food, clothing, house) and WANT (ipods, etc). If you keep this in mind you can go a long way and learn about others over time.

Answer 6

nicely, I grew up in a society the position anybody is judged with the help of their prestige. the position human beings marry human beings of an identical prestige as well, and that is what's envisioned of me. i imagine funds does play a function in marriage. It has to. i does no longer marry a guy who became very reliable and did not understand a thanks to handle funds. i have were given expectancies, yet do not all of us? I really were in love with a guy who became negative even with the truth that, and that became by no skill the placement. what's the placement is that if that individual is really attempting to paintings for the money. i visit work out issues from both perspective. i imagine, interior the longer time period it really is smart to marry for funds see you later as there is a few type of chemistry. doesn't should be love even with the truth that. yet may I do it? no longer confident.

Answer 7

Hi i'm 16 too. I haven't even thought about any of that stuff. You'rre really mature :-P

I don't know what i'm going to do yet. If you need money, you could try buying wholesale & then resell on ebay? You can also save money from online shopping and more from these links



Free Sweets http://sweets.url40.net
Free £3 http://cashbin.url40.net

USA Wholesalers/Dropshippers: http://usatrade.url40.net
Canada Wholesalers/Dropshippers: http://cndatrade.url40.net
UK Wholesalers/Dropshippers: http://uktrade.url40.net
For all other countries: http://worldwide.url40.net