Money Tips and Savings Accounts for Teenagers

The teenage years are the ideal time to learn money tips, such as the different types of savings accounts! Here, Jill Russo Foster describes emergency funds, compound interest, and the importance of paying yourself first.

Before her tips, a quip:

“If you want to recapture your youth, just cut off his allowance.”  ~ Al Bernstein

If you have a job, my teenage friends, you won’t have to worry about your allowance! For info about finances, click on The Teen’s Girl’s Gotta-Have-It Guide to Money: Getting Smart About Making It, Saving It, and Spending It! by Jessica Blatt et al. And, read on for Foster’s money tips and types of savings accounts for teenagers…

It’s never too early for to start investing!  Teens should start to invest as early as they get their first real paying job.  The power of time is on their side, so investing small amounts for long periods of time will mean that you investment will grow over many years.

2 Different Types of Savings or Investment Accounts

Foster recommends starting two different types of investment accounts:

Long Term Savings – there are two types of long term savings. The first is for college tuition and expenses; you should be investing in a 529 plan from the time you are born. If a family member didn’t do this for you, then start as soon as possible. The second type of long term savings is for what you want in life (ie. new car, your first apartment etc). 

Short Term Savings – or an emergency savings fund, so that whenever happens in life you’ll be prepared with cash in the bank! This emergency money will be available when you need it (eg, a security deposit for you first apartment, unexpected car repairs etc). Emergency funds are kept in a bank account that has no penalties to withdraw the funds when needed. As you get older, you should build this account to have a minimum of one year of your income. This will give you the security if you lose a job and can’t find another one quickly.

If you’re worried about handling your money, read 4 Tips for Facing Financial Fears.

Learn about compound interest. If you were to invest $300 per year ($25 per month each and every month), at a 5% interest rate, you will have earned $3,923.23 at ten years and $10.343.66 at twenty years.  If you can invest more, that would be great. Read

Need encouragement? Get a beautiful FREE "She Blossoms" 2019 calendar when you sign up for my free weekly Blossom Tips!

One Blossom Tip a week. Short and sweet. You'll love it.

* indicates required

Pay yourself first! Make a habit of paying yourself into your savings account first.  So whenever you get money or a paycheck, deduct a certain amount and deposit it to your account.  Ask the company that you work for to automatically withdrawn the amount for your savings before you get your paycheck.

To learn about investing in mutual funds or the stock market, read Best Strategies for Investing Money for Long-Term Growth.

Jill Russo Foster is the author of Cash, Credit and Your Finances: The Teen Years.  She educates teens to the importance of money and credit so that they won’t make the mistakes that she did!

Share your thoughts below - you won't be judged or criticized! I read every comment, but can't always respond personally.

If you need relationship help, get Mort Fertel's 7 Steps to Fixing Your Marriage - and FREE advice, no strings attached.

My Books - She Blossoms

Growing Forward When You Can't Go Back She Blossoms Laurie Pawlik
Growing Forward When You Can't Go Back - to help you walk through loss into a new season of life. I share glimpses into my life with a schizophrenic mother, living in foster homes, teaching in Africa, and coping with infertility. Woven through the book are practical, encouraging Blossom Tips to help you grow and flourish!

How to Let Go of Someone You Love She Blossoms Laurie Pawlik

How to Let Go of Someone You Love - Powerful Secrets (and Practical Tips!) for Healing Your Heart After a Breakup. Do you feel like you'll never get over your broken heart? This ebook - available immediately - will help you heal. It's time to let go of what was, and embrace what will be.

When You Miss Him Like Crazy She Blossoms Laurie Pawlik

When You Miss Him Like Crazy - 25 Lessons to Move You From Broken to Blossoming After a Breakup! You miss him desperately right now, but you won't always feel this way. This warm, comforting ebook will give you the tools, encouragement and strength you need to move through the pain and start blossoming - today!

Leave a comment

Your email address will not be published. Required fields are marked *