How should I manage my money?

Question

I'm 17 and right now I owe money to my parents but I already worked enough hours to pay them I'm just waiting for my check. Lately I've been thinking about the future I will be graduating within the next year and next fall I am going to hairdressing school. I already have enough money to pay for that though. During the school year I can only work one day a week at my current job but I am planning on getting a second job. I should be getting my licence soon but I already have a car so in my budget I will only need to pay for gas and car insurance. So should I get a checking account or stick to my savings account and have my parents sign for me to get me a Debit Card. I am very responsible with my money, the only reason I owe my parents money is because I bought a projector at the beginning of the summer so my whole family could spend more time together, so my parents know I will be able to manage a Debit card.

Answer 1

Once you reach the age of 18, you can have your own account.  If you are as responsible as you claimed, I would suggest that you start creating your own financial and credit history.

If you are thinking about investing, I would suggest opening an Roth IRA.  With your current income level, you'll pay very little if any income tax.  The money in Roth IRA can double several times before you retire.  You will pay no more taxes on that growth in your Roth IRA.  There is limit on how much money you can put into Roth IRA each year.

Best wishes.

Answer 2

INVEST....INVEST!! lol..I recommend an online brokerage firm that has good beginner qualitys {like tutorials or an easy to understand set up}, i use zecco, better then schwab, etrade, etc. they are the only ones with free stock trades, no minumums..all the others will charge you fees for trading, but compare and see for yourself. Its how i got started, and am still doing quite well.Good luck and happy investing!

http://friends.zecco.com/r/a7a2877caab81...

Answer 3

hello - GREAT that you are thinking of this, and GREAT that you are already so financially savvy. You are way ahead of the game and clearly on the path to staying there -

here are some more tips and ideas -

List out how much money you have coming in each month (paycheck, side jobs, etc.).

List out what your fixed costs are (car payment, car insurance, cell phone, gas, commute costs etc.)

Track it by category -

retirement (ROTH IRA, 401K, etc.) - min 10% from each paycheck, preferably 20% (you are young, not rent costs, should be able to do this)

car (payment, insurance, etc.)

gas

eating out

clothing

movies/plays (include the popcorn)

books

hanging out with friends (bar, pool etc)

non meal related drinks/snacks (Starbucks, diet coke, snacks)

other

other

and you will see quickly where your money is going to go. Then you can see if it is all the right places, or if you want to make a change and not buy so many clothes, see so many movies (or pass on the popcorn) etc. Do you need to have the car you have or is there a way to get a vehicle without a car payment?

Consider what is really important to you and what is not and spend accordingly.

Be sure to put all left over money into retirement savings somewhere and not just spend it on something else.  And keep tracking what you spend for at least 6 months. that will help you get into habits and patterns that are good ones.

Retirement savings are very important, so start now.  I see so many questions here about stopping contributing or waiting to start or taking the money already saved out, dont do that. The value of the compound interest is huge.

feel free to email me for more info if you like

good luck