How much money should a 14 year old have in their bank account?
I am a 14 year old boy who loves money, and wants to succeed. I mow lawns, do garage sales, and a bunch of other stuff. I have nearly 2,000 dollars in my account. This is money that I have earned. After my birthday(6 months) I plan to have around 3500 dollars in it. This doesn’t include my other account with a bunch of savings bonds for college. Is this a lot, or not enough? Also if you have any tips about life in terms of money it would be greatly appreciated.
July 23rd, 2010 at 1:02 am
Hey i’m right there with yea, cept i had maybe 30g in the bank at 14, just work your ass off and save everything you can, when you get older you wont regret it.
July 23rd, 2010 at 1:21 am
You are doing very well at saving. Keep it up.
Money in itself is not special but having some gives you independence to live your life the way you want to.
When you feel you are ready, open a mutual fund account. Vanguard has a reliable fund called STAR that you can open for just $1000. Set it up to reinvest the earnings and each year you will get more shares. You can add to it from time to time, too. This will help your funds grow faster than just in a bank account. Don’t worry when the stock market is down. It will go up a lot over the long pull and now is a good time to invest.
Keep up the good work and good attitude!
July 23rd, 2010 at 2:19 am
You need at least $200,000 for 4 yrs of college at a decent school plus your living expenses (dorm, etc. or more if you get an apt). If you are aiming for a top-notch academic institution or Ivy League, double that. How much are your parents putting into your 529 college savings plan? And how much are they going to contribute out of their income during your college years?
You’ll need the $3500, plus more, for campus visits, application fees, testing fees, etc.
And if you are really ambitious and financially savvy, you will start putting some of your income into an IRA right away to give your money more time to work and to cut your taxes now.
Tips: look up “Rule of 72” and learn it. Most important money lesson you will ever learn! (Divide interest rate into 72 to find out how long it takes money to double. If you pay 24% on a credit card, 72/24 =3 — every 3 years the bill doubles! If a CD pays 6%, then 72/6 = 12 years to double your savings. Also, study personal financial management — plenty of books at the public library. Read several for different viewpoints and ideas.
July 23rd, 2010 at 2:48 am
Excellent attitude.
However, taking advantage of a free education will make you vastly wealthier than if you have a small amount of money now. Getting extremely high grades (and investing the time and disciple they take) will be worth much, much more than a few odd jobs right now.
I would also highly recommend taking classes at a local community college, rather than immediately going to a much more expensive 4-year college or university. The credits are almost always transferable, especially if the community college is reputable. Community college courses can cost hundreds of dollars per credit hour less, and you get the same education out of them….sometimes you get an even better education, since community colleges often hire members from the local area who have a high level of life experience in the field, rather than educational (ie PhD) experience.
Another note to mention; low-level classes at 4-year universities are often taught by TA’s (Teaching Assistants) rather than the PhD’s. So you’ll be paying more for the same (or even less of an) education.
July 23rd, 2010 at 3:10 am
I think it’s great that you have that kind of money in your bank account! Just make sure you’re earning the best “bang for your buck” interest wise. You may want to look into a CD which earns you a higher interest rate at a no-risk level. You can’t touch your money for the term of the CD (which most people like because it’s easier to save this way). You should be able to sit down with your banker and discuss what term CD’s they are offering. Check other banks too, they may offer a higher rate! Just be sure you are with an “FDIC” bank and that your money is insured. You should be insured up to $100000 individually. Another piece of advice: be SUPER careful with your credit when you start to get credit card offers. Nothing will make you more miserable than bad credit. Just remember: It’s best to acquire credit when you’re young (but old enough to not over spend!): you have to show some kind of history when buying a new car/house etc. You can do this by applying for credit cards or clothing store cards etc. Just make sure you pay these back in a timely manner and don’t put more than you can afford to pay off monthly on there. If you can succeed in keeping a good credit score then you’ll have smooth sailing through life with the best interest rates being offered to you and a much easier time borrowing money! I’ve been able to accoplish this and I can borrow money for 0% interest the majority of the time! That means more saving $ for retirement! Kudos for being so good with your money!
July 23rd, 2010 at 3:16 am
You sound like myself. I am 16 now. What has helped me is reading books written by good business owners and investors. Try “Rich Dad, Poor Dad” by Robert Kawasaki. Also, try out this website: money.startandearn.com. This site make me an easy $200 a month. I make at least $100 a month without even going on. If you need help with it, just ask.
July 23rd, 2010 at 3:48 am
Make sure that you keep your money in a savings account until you are old enough to be responsible with manageing your money in a checking account. I had the unfortunate experience of overdrawing my checking account and had to pay $35. Sounds like you have a lot of money in savings which is good, dont blow it on stupid stuff and put some in a college fund.