I'm 14 and I have $10,200 in the bank what should I buy or should I save the money or should I invest the money
2007-01-12 07:43:15 · 8 answers · asked by Your Mom Loves Me 2 in Business & Finance ➔ Personal Finance
depends on when you will need the cash. If you aren't going to have to save for college or anything near term (which is a real possibility), you are pretty young so I'd put it all in an index fund and allow the stock market to work for you for a while. Over the long term, an index fund will go up (10 - 12% a year) much higher and faster than a CD and as long as you don't sell, you don't have to pay taxes on that gain and when you do your tax rate will be lower. The interest rate on a CD or whatever will be 5% at best and then you have to pay income tax (it won't be a big deal right now since you are a minor and aren't making much) and is a bad deal over time.
Vanguard.com, motleyfool.com and finance.yahoo.com
Good luck.
2007-01-12 09:52:37 · answer #1 · answered by techibd 2 · 0⤊ 0⤋
put a chunk of it in a CD. They have higher interest rates than a regular savings account. Only downside is that they keep your money for a pre-agreed time period like 6 or 9 months. When I was your age, I wasn't using my money for anything so I put most of it in a CD and kept renewing it. Keep some emergency money in a savings account though.
2007-01-12 07:51:46 · answer #2 · answered by plant a tree 4 · 0⤊ 0⤋
Avoid the temptation to blow the money buying something, having that chunk of cash will give you a real leg up in life. If you think you'll need it for college you should probably put it in the highest yielding CD you can find that matures when you start college. If you won't need it for college, put it in something like the S&P 500 ETF, ticker symbol SPY.
2007-01-13 14:50:52 · answer #3 · answered by geronrocks1 2 · 0⤊ 0⤋
I hope it's not just in your savings or checking account. At least put it in a type of account that will give you higher interest rates until you decide what you want to do with it.
2007-01-12 07:47:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
well I would advise you to invest wisely having it in the bank is a wise idea it collects interest until you find something worth investing it in.Good Luck.
2007-01-12 07:52:45 · answer #5 · answered by Dew 7 · 0⤊ 0⤋
Invest in ETFs.
2007-01-12 20:23:52 · answer #6 · answered by Anonymous · 0⤊ 1⤋
You could give it to me.
2007-01-12 07:52:48 · answer #7 · answered by infectious 2 · 0⤊ 0⤋
spend it unwisely.
2007-01-12 07:56:37 · answer #8 · answered by bigplops 2 · 0⤊ 0⤋