Ok this is a question more towards people who are 25 to like I don't no 60s I guess?

ok so i am 16 and I'm getting a job soon. Im going to open a bank account and savings account then link the 2 . I'm going to transfer 10o/o of each paycheck to my savings account. and im thinking that wall im 16 and don't have bills to pay. that I should get the stuff i may want or need after i move out gathered and paid for so its ready to go. you no like kitchen and stuff like that. my question is what do you think is this a good idea?


0|0
4|17

Most Helpful Guy

  • This is what you should do:

    10% - into savings for absolute emergencies only. This means - car stuck on the side of the road, or an emergency root canal, or some other REAL emergency.
    40% - into savings (can be a separate savings account if that's easier) for things you'll need when you move out. Don't buy that stuff now - you'll just have to store it, it will lose value in the meantime, and it might not be what you actually need. Instead, save the MONEY, but don't DEPLOY that money until the actual need arises.
    50% - spending money.

    If you think you can save more than 40% for moving out, then do so. The more you save, the better things will be for you. But NEVER, EVER skip the 10% to your emergency savings - that should be the very first thing you do with every paycheck you get: "pay" your savings. You'll get used to doing that and you'll never miss the money - but when an unexpected bad day comes - AND THEY WILL - you'll have a financial buffer to help weather the storm.

    0|0
    0|0
    • ya i know the 10o/o thing always pay yourself before anything else . i went to a online learning course for financing called www.foolproofme.com

    • That's a good start. I recommend you read Rich Dad, Poor Dad (buy it for less than $10 - it's worth a hundred times the price easily) - while it's not the best-written book ever, the lessons are very real and very relevant. It's one of the very best "introduction to the management of money" books I've ever read.

    • i may read it lol but right now im happy with finding a way to keep my cussins out of my room and out of my stuff lol but ya i think i may read it lol

Most Helpful Girl

  • Excellent idea. I did the same, I still do it now.
    It is my house fund to buy a place. It's always good to have extra money whether it's an unexpected bill or something you really want.

    Be realistic. Give yourself enough money to enjoy yourself but if that money is automatically transferred on pay day you don't even factor that money into your month.

    0|0
    0|0

What Guys Said 16

  • Excellent idea. You probably have a few years before you will be leaving home. If you envision moving in to an apartment, having your own place. . . you could watch the sales announcements and buy things gradually when you can get them at a drastically reduced price (like stores going out of business.) That assumes that you would have a place to store those things in the meanwhile. It also shows your parents your intentions and they may take you more seriously because they know tiy are looking ahead and planning for the future.

    0|0
    0|0
    • i tend to look at things a long time befor i buy them lol and see if i can find the cheeper and my mom sees me as indapendent. thanks for your opinon

  • Don't buy anything yet, you don't know what you need until you actually need it. Put in more money then 10%, try 25% It sounds like a lot but its a good amount of money saved up that will still leave you plenty to spend plus its good to get in the habit of being frugal now, last thing you want is to get use to spending a lot of money and then suddenly having to change that habit when you finally get bills. So just save pile it away in your savings acount and forget it exists until its time for you to move out and actually need it.

    0|0
    0|0
    • the 10 was a typo. and believe it or not i do no what i need i watch my mom each time we move lol

    • yeah but you have to keep in mind apartments are small if you end up going out a lot or working you use different things then if you don't plus if your buying it now thats more stuff to deal with later for moving etc. So I would say keep a mental checklist going on what you probably will need but don't actually buy anything that way you can always amend it or change it later.

    • lol ok one i was not getting beds and couches yet that would be stupid and ya but i have packed a whole house in under 23 hours and had everything unpacked in 15 and i more meant im saving the cash for it but i have the stuff in a save for later cart to get when im older lol

  • I think it's a great idea. Saving is one of the best habits you can get into. In my experience people who start saving when they are young do very well in life. Partly because savings itself is a good habit. But also because the types of people who work and save at a young age are starting life with the right kind of attitude to get them ahead.

    The only suggestion I would have is that, until you live on your own, you might not know exactly what kind of things you'll need and actually use. I think you should save, and look for deals on things you have high confidence that you'll really use, but avoid buying things you aren't sure about.

    Keep up with your bank accounts, and balance them every single month when the statements arrive. That's another good habit to get into that will make things easier for you in the future.

    0|0
    0|0
    • i really only planned on getting things i would use. it makes no sense to get a couch when you don't know how much room you will have lol. and i plan to keep up on my bank statements and keeping track of how much i spend. never letting my bank account have less than a 100 in it so i never get close to bouncing a payment. and thanks for you opinion

  • You'll be much happier if you squander your money as soon as you cash the check! Get yourself all the junk food, beer and cigarettes you can lug home and watch TV while you enjoy the fruits of your labor!

    1|0
    0|0
    • um yaaaa nooo i dont and can't drink i will not smoke and i dont plan to work at this place my whole life

    • Show All
    • I grew up in NH. One winter ther should satiate your desire for a winter wonderland.

    • lol thanks

  • I know I'm not in the age group, but I'm moving out in January and I planned on saving money and buying what I'll really need and use day to day right before I move in and buying the rest of the stuff as I get situated. If you get it all now it will more than likely lead to a cluttered bedroom until then.

    I said planned because a friend and I are going to be moving in with another friend who has a large house (5 bedroom) and only him and his mother live there so they already have everything I was planning on buying. So now instead of focusing on kitchen appliances and living room furniture I really only need to just get bedroom furniture. Which he has most of.

    Also in my opinion waiting is better because you avoid clutter and you never know how things work out and you may end up not needing what you originally thought you did.

    0|0
    0|0
    • ok one its fine ya don't match the age.2 i'm more just making a list I'm not getting it yet.3 ya im not getting couches and shit till i know how big my living space is. 4 i highly doubt i will live with other people like you are going to.

    • Show All
    • um i live in NM and the most i got is a boyfriend and we a long distance thing but its still going to be a long time before i live by myself I'm going to a college right after high school.

    • I finished early so I'm taking a gap year to work full-time

  • How long are we talking like 2 years right? You want to really be smart with your money? Save but throw your money into an investment account (I use OptionsXpress. com, no minimum even needed to open account I believe), and put your money into a Vanguard S&P ETF, and just let it sit there. Over 2 years it's going to grow some good money. It's $9 to make a trade, so work with batches of money.

    0|0
    0|0
  • good savings idea.
    kitchen stuff... you don't need brand new, take some time to shop around, see if can find used stuff?
    you are 10steps ahead of most people!

    0|0
    0|0
    • um i planned to find better prices for that kinda thing i member mom got her cast iron pans from the flea market i was a fan of cast iron lol

    • Show All
    • I meant you are smart for your age to have such a plan.
      I like cast iron as it is non stick naturally.. can't stand the stuff that scratches and pollutes the food. Only downside is the weight. It has iron in it which can be good... I guess... unless you have iron issues.

    • lol i like the weight it gives me a way to kept my cussin out of the kitchen lol​

  • Saving money is always a good idea. And you're just saving 10%, I saved everything xD (but I know that I'm an exception, it's easy for me not to spend money).

    0|0
    0|0
  • If you Dante have bills to pay I'd say put more into your savings. It sucks in the moment but you'll be thankful latter on. You also have a good idea with buying your ecesintials now. Shop around and find a good deal. Garage sales and auctions are a good place to find a lot of those at a good price.

    0|0
    0|0
  • Good idea however i would choose to do more than put away that money, i would consider getting a broker and simply building up more money on top of what you already are making

    0|0
    0|0
  • This is a wonderful idea. The more you save now. The less stress you'll have later/

    0|0
    0|0
  • allocating a designated amount to save each paycheck is probably the best financial advice anyone can follow. you're way ahead of the game. =)

    0|0
    0|0
  • A good idea is to stay in school your hard to understand lol. Savings accounts are good but you have to pay tax on whatever accumulates anyway. TFSA is best if you want to lock in that money for say 4 years

    0|0
    0|0
    • I'm not a drop out you know. I used the fucking speech on my cell to post this.

    • cells are the worst for that every second word is auto corrected makes me want to break shit

    • it don't bug me much.

  • It actually sounds like a good plan. When i was 16 i didn't have that option, i was living on my own at that time..

    0|0
    0|0
  • A savings account is always a good idea!
    And knowing the difference between no and know is kinda important too :P

    0|0
    0|0
  • I hope your job doesn't involve spelling and grammar skills. You won't last very long.

    0|0
    0|0
    • grrr why does there always have to be a grammar freak? I'm smarter than i seam online damn it.

    • i was asking if it was a ok idea not for someone to bitch abut my grammar

What Girls Said 3

  • I think you're better off saving for something like a car or computer to go to school with than buying a set of spoons you may not need.

    0|0
    0|0
    • i am going to school and i do have a pc.

    • You're going to university right now? Really?

    • what no i don't go to vet college till I'm 18 . and I'm saving for that as well

  • Terrible idea, focus on your education so you know the basics... like spelling and grammar.

    0|0
    0|0
    • grrr why does there always have to be a grammar freak ? why is it a bad idea? and i do go to school ya know I'm not a dropout.

  • I know you said 25-60, but my mom always says to split your money 3 ways. You save one part, you spend the other part on whatever you want, and the last part is invested in your business/company, but since you don't own a business you could split the last part (the business/company money) into two and spend half of it the save the rest.

    0|0
    0|0
Loading...