# What should I do with my money

cristo
Staff Emeritus

S_Happens
Gold Member
the value of the liquidity and having an emergency fund is worth more than the pittance in interest he'd make at this point. you shouldn't be investing at all until you have a minimum amount of cash saved.

As I said, an online savings account will net both CD competetive interest rates and keep the money liquid enough to be accessible within a day or so.

I totally agree. Intrest rates on $2500 are insignificant (correct me if I'm wrong) Thanks for the responses (keep 'em coming). I think I'm leaning towards just simple saving...For 3rd year university (when my parents stop paying) & needs (not wants) in the meantime. I'm naturally very frugal so this won't really be a problem. Although...the telescope is still very compelling :p I totally agree. Intrest rates on$2500 are insignificant (correct me if I'm wrong)
If you look for a good interest rate, the money stays in there for years, and you keep adding when you can it WILL add up. If you're only planning on saving for a couple years it certainly wont make much.

lisab
Staff Emeritus
Gold Member
Nicknaq, I say save it for school, but not in a place where the principle is at risk (i.e., don't put it in stocks). Even though interest rates are low now, an insured account is your best bet.

When I was your age, I also struggled with these kinds of decisions. The trick is determining a want from a need...needs must take precedence. You need to get through your last year of college; you merely want a telescope. But I think the mere fact that you're asking the question means you already know correct move.

And btw, good luck with your schooling .

Ok, I am going against the grain here and will probably get ousted for it, but in my opinion you need to realize that you are young. Your parents are still supporting you financially, and as such you are free to make risky decisions with potentially big rewards without serious risk to your own financially well being. You do not have to provide food/car/housing for you or your family, and as such you have no need for "emergency funds" or liquidity.

With current interest rates saving is just silly. You will get very little interest and inflation is sure to take its toll over the coming years.... (Warren Buffet just has an op-ed in the WSJ on this issue).... now is the time to take risks (smart risks... research, do homework, get involved) and learn from your mistakes....

It's silly to park your money in a low yield savings or CD that could be sitting in the market and gaining money in several other ways (you could trade... there are many ways to make money in the market)... and you can do it all without the fear of financial difficulties....

If you truly want to be successful (well... define successful) "monetarily" you MUST take risks...

S_Happens
Gold Member
I think you exaggerate a bit, but typical investing strategy would agree with you. That's not to say that he should have zero savings either, or that there's not more value in a savings account than simple interest (learning to save itself is extremely profitable). As long as the research goes along with the investment at an early age, I think the payoff for a teenager should be becoming financially responsible, whatever the route taken. It makes life a lot easier when you learn early and don't have many of the monetary worries that the majority of society does these days.

Don't take that to mean I'm hardcore conservative with my money either. I started playing in the stock market when I was an early teenager, but I was willing to put in the effort. I also take plenty of risk in my investments now, but I had already built myself quite a bit of security before I started doing that.

In the end, I'd consider that learning (or simply getting used to it) to save at this point is more valuable than trying to make a minimal amount of extra return by investing.

Nicknaq, I say save it for school, but not in a place where the principle is at risk (i.e., don't put it in stocks). Even though interest rates are low now, an insured account is your best bet.

When I was your age, I also struggled with these kinds of decisions. The trick is determining a want from a need...needs must take precedence. You need to get through your last year of college; you merely want a telescope. But I think the mere fact that you're asking the question means you already know correct move.

And btw, good luck with your schooling .

Ok, I am going against the grain here and will probably get ousted for it, but in my opinion you need to realize that you are young. Your parents are still supporting you financially, and as such you are free to make risky decisions with potentially big rewards without serious risk to your own financially well being. You do not have to provide food/car/housing for you or your family, and as such you have no need for "emergency funds" or liquidity.

With current interest rates saving is just silly. You will get very little interest and inflation is sure to take its toll over the coming years.... (Warren Buffet just has an op-ed in the WSJ on this issue).... now is the time to take risks (smart risks... research, do homework, get involved) and learn from your mistakes....

It's silly to park your money in a low yield savings or CD that could be sitting in the market and gaining money in several other ways (you could trade... there are many ways to make money in the market)... and you can do it all without the fear of financial difficulties....

If you truly want to be successful (well... define successful) "monetarily" you MUST take risks...

Wow, two very good posts arguing opposite points.

Thanks for the advice to you both!

DaveC426913
Gold Member