What should a 15 year old do to be on track with finances?

Question

Should a teen have a certain amount saved up? What should be some short and long term goals?

Answer 1

Depends on what your ability to gain income is. If you have an allowance - use whatever you need to have a good life, save the rest. If you can get a job (which I'm not sure you can at 15), then pick a percentage of your pay - maybe 40%, and put it in a savings account. If your goal is a car, maybe you should save a lot more, but it all depends on what you want - at 15, your goals should really be what do you want, not what do you need - parents should take care of that.

Answer 2

Any teenager (and I assume you are asking for yourself?) is already WAY ahead of the game to be asking such a question. Congratulations!

Your long-term goal should be to buy somewhere to live. If you can invest as little as $20 a week into a 'broad market' fund, you can expect a long-term return of 10-15%, giving you close to $50,000 by the time you are thirty even if you continue to invest only $20 a week even after you get a "real" job!

Your short-term goals should all be to do things you want to do for you and for those you care about.

Best wishes...

Answer 3

Don't build debt. Don't buy anything you can't pay off quickly. Even if you have a job, don't bet on the fact you'll still have it in a couple of weeks.
A prepaid credit card is a fantastic way to start understanding all the financial tricks. Or opening a free checking acct. You can do it with one dollar, but make sure there is no acct access fees or a $25 monthly service charge.
I started thinking about all this pretty late in the game, but I'm now established and investing. The number one thing to do, even though it is sooooo boring, always read the fine print. That way you can't be caught off guard and you'll be prepared to shoot the fine print back at them if they try to jerk you around.

Answer 4

It totally depends on the teen. If you have a job, you definitely need a bank account (sticking it in a jar under your bed does jack squat for you and it can be stolen). Most 15 year olds don't have a whole lot of expenses, so most of their money is expendable. Try opening a high yield savings account, such as ING's Orange account. They've got interest rates in the ball park of 4.5%, which is compounded monthly. It'll add up VERY quickly.

Answer 5

YES! - A teen should have SOME funds saved from the previous years' allowance from working around the house and doing odds-and-ends around the neighborhood.
NOW should be the ideal time in the teen's life to begin an actual BUDGET. Set out both a long term and short term budget schedule to analyse actual expenses.
[Parents] it is YOUR obligation to help them with this analysis and implementation. - You (hopefully) have REAL LIFE experiences to advise your teen(s) about budgeting.
(In this analysis) list the FIXED EXPENSES (expenses that HAVE TO BE PAID) : Housing, utilities, taxes, etc. and the VARIABLE expenses (bills that can be paid or avoided) : Video rentals, either buying a 4 course dinner or eating left overs for supper, or Buying a pair of GUCCI jeans or simple Days end styles.
The ultimate idea is to MAKE IT SIMPLE so the teen(s) will WANT to learn and apply it.

On the LONG TERM budget, help the teen understand the value in their Education! - Help them plan for college and life afterwards.
Again, parents, you have the experience with budget planning and follow-through.
It is everyone's task to apply these lessons.

Answer 6

The short and long term goals are actually up to the teen. It's better to start saving as much as you can now. That money just may come in handy........for college.

Answer 7

The median internet worth for a 20-19 year previous is $7,900. the right 25% of 20-29 year olds have a internet worth of $36,000. the certainty you're even questioning approximately money places you way interior the right percentile of youngsters, financially talking. appropriate innovations to place you on objective: a million. initiate development a credit history. 2. Make good grades so which you qualify for scholarships and provides you for college--additionally so which you will get in a physically powerful college. 3. build your resume early. What you do earlier college would not certainly rely and should no longer be on your resume once you're activity looking after college. yet as quickly as you get to college, get entangled deeply in a pair of agencies (activities, volunteering, Greek existence, student government, in spite of) as an instance your dedication, interest, and potential. 4. save money in a Roth IRA as quickly as you have earned earnings. i began doing this as quickly as I had my first activity, and now i'm 23 with in simple terms approximately $20,000 in my IRA!! i'd desire to offer up contributing now and nonetheless finally end up with greater retirement money than maximum individuals. 5. save something you could in a money marketplace account earning 4-5%. This money could be used for any short term objective--a motor vehicle, a holiday, learn overseas, an engagement ring/wedding ceremony, a condominium/abode...i be conscious of it seems some distance away, even though it takes an prolonged time to save sufficient to do those issues without taking on debt. So initiate now!

Answer 8

Save about twenty bucks a month.

Put it all in a safe.

By the time your 50 or 60 , you'll be rich.

Answer 9

At 15 you only need enough for an ice cream cone when you want one.

Answer 10

Let's ask Bill Gates