What are some things I should save up for as 16 year old?
I'm going to start working and need to know what to save up on.
#WORK
#TEEN
#SAVINGS
4 answers
Dave’s Answer
That's good that you're thinking ahead and looking to save for something. I would definitely put money away for college. The more money you have, the less student loans you have to rely on. I would also put away money for a car and maybe $10 a paycheck towards petty cash...something to have in case of emergency or maybe a fun little trip somewhere.
Kim’s Answer
Steven,
Congrats! and welcome to the working world! It is good that you want to save! I recommend having multiple savings accounts. Each should be for something special. So, you might have one to save for a car (at least the down payment), you might have one to save for school, etc. It's actually not too early to be saving towards other adult expenses, including wedding, honeymoon, buying a home, etc! This includes retirement!
I suggest you start researching on-line, to get the hang of savings. The banks and credit unions have various fees, and you don't want to see them taking your money because, for example, your balance is below $1500. Ask about the fees. Compare. Credit unions tend to be better.
There is a term called "pay yourself first." That is, if you automatically take 15% or so off the top of your check and set it aside, it gets easier and easier to do. You could have your entire paycheck sent to the bank (direct deposit) and then have the bank automatically transfer $xx.oo to savings. I also recommend that you track your every expenditure. I have started doing this since retiring, as money is tight and seems to just disappear! I do it on a spreadsheet, and break it down into many different categories.
Another thing to save for is what is called an "emergency fund." The financial experts recommend that you have an account that will allow you to be able to pay 3-6 months of your living expenses. So, if you save up say, $5000 (over time!) and your car needs $2500 worth of repairs, the idea is that you would pay it out of that emergency fund, and then work on paying it back. This way, you are not putting it on a credit card and paying interest to somebody else!
I know I went off subject - I hope you find the additional info helpful. Money management is crucial to know, and it is not taught sufficiently in most schools!
Best of luck!
Kim
Sara’s Answer
Allie’s Answer
Hi Steven! Starting saving habits early is very important! As a 16 year old you don't need to have a big savings plan, but it's great to have a goal you can work towards. Maybe start small, and save for a piece of clothing or new game you really want. You might be driving soon, so you could also start saving towards a car. Hope this helped!