Should a teen have a certain amount saved up? What should be some short and long term goals?
2007-02-13 08:40:41 · 9 answers · asked by zander1331 3 in Business & Finance ➔ Personal Finance
Start with a Roth IRA. You can then contribute each year and by the time you are retirement age you will be fixed
2007-02-13 08:49:56 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The median net worth for a 20-19 year old is $7,900. The top 25% of 20-29 year olds have a net worth of $36,000.
The fact you are even thinking about money puts you way in the top percentile of teens, financially speaking.
Best ideas to put you on track:
1. Start building a credit history.
2. Make good grades so you qualify for scholarships and grants for college--also so you can get in a good college.
3. Build your resume early. What you do before college doesn't really matter and shouldn't be on your resume when you're job hunting after college. But as soon as you get to college, get involved deeply in a couple of organizations (sports, volunteering, Greek life, student government, whatever) to demonstrate your dedication, passion, and ability.
4. Save money in a Roth IRA as soon as you have earned income. I started doing this when I had my first job, and now I'm 23 with almost $20,000 in my IRA!! I could stop contributing now and still end up with more retirement funds than most Americans.
5. Save anything else you can in a money market account earning 4-5%. This money can be used for any short term goal--a car, a vacation, study abroad, an engagement ring/wedding, a condo/house...I know it seems far away, but it takes a long time to save enough to do those things without taking on debt. So start now!
2007-02-13 17:42:27 · answer #2 · answered by lizzgeorge 4 · 0⤊ 0⤋
A teenager that age should have a savings account, especially if they have a job. They can start saving for a goal, whether it's a car or ipod or college.
If they have a job, they could also start a Roth IRA, but that's probably a bit of a reach for most kids. That's too bad, because a Roth could possibly make them a millionaire by the time they are 50. It's not guaranteed, but the best thing they can do is to contribute regularly for a long time. Compound interest is an amazing thing.
2007-02-13 16:59:34 · answer #3 · answered by Ralfcoder 7 · 1⤊ 0⤋
Reading "Rich Dad, Poor Dad" was great advice. Also, something fun to do for the next few years would be "paper trading". Pretend that have $10,000, do research to find the best stocks or mutual funds, and write down your "investments". Don't forget trading fees (at least $6.95 to buy and sell each stock, mutual funds may be free if in an IRA) Then, a year later, check back to see if you made or lost money. If you made money, did you beat the Dow Jones or Nasdaq?
By the time you actually have $10,000, you'll have an excellent idea of what to do with it.
Good luck!
2007-02-13 20:20:07 · answer #4 · answered by Anne 2 · 0⤊ 0⤋
I agree, DO NOT FALL FOR THE CREDIT CARD SCAM!!!!!!!! Go to the library or wherever, and read all you can about personal finance. They're not going to teach you in school, and considering personal debt is at an all-time high, your parents may not even be able to give you good advice. If you're thinking about this right now, you're probably way ahead of most in your generation, but keep working at it and you'll do fine.
2007-02-13 20:17:05 · answer #5 · answered by dan h 2 · 0⤊ 0⤋
Read the book "Rich Dad, Poor Dad". It's written so that a 15 year old can understand it, and it will teach you the things they'll never teach you in school about money. Learning this stuff now could save you from a lifetime of bad money habits. I wish I'd had this book (and the sense to read it!) at your age. Good luck!
2007-02-13 17:16:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
A 15 year old should understand how money fits into the overall life experience and how easy it is to spend but how hard it is to be earned. I would recommend an extra emphasis on math subjects and get to understand and appreciate it in the life around us.
Eboudames
2007-02-13 16:49:54 · answer #7 · answered by boudames 1 · 0⤊ 0⤋
The most important thing you can do is don't fall for the credit card scam. They really won't help your credit. Always pay for what you want with cold,hard cash and you will do fine
2007-02-13 16:48:38 · answer #8 · answered by Anonymous · 0⤊ 0⤋
no... unless you are a clerk or something.. u don't really haveto keep track of anything, ur only 15, or whoever ur talkin bout is only 15,
2007-02-13 16:49:39 · answer #9 · answered by i just wanna rock 1 · 0⤊ 0⤋