I'm 16 years old and have about 4k in a savings account. Any advice on how to grow my money?

Question

I would to do something with my money instead of letting it sit in a savings account and collect change over the course of a year. I'm willing to take some risks but not anything major. Should I put it into a CD? the stock market? Any advice would be greatly appreciated.

Answer 1

Hi

You could invest your money in a small business and earn 20-24% per year.

Go to http://get24percent.blogspot.com/2008/06...

Good luck!

Answer 2

First of all, congrats! You seem like a very smart person to be growing your money at 16.  I see people in their 50's that cant hold on to 4$ much less 4k.  At this point, with the way that everything is going in the market, I would say your best bet is to put it into a cd.  You can get great rates by doing a little shopping around.  If you live in an area where you have smaller credit unions, It would not hurt to check them out.  Most of the time it is very easy to join, and if you are a student most banks will give you extras.  The average rate of a cd right now is about   4% which is much better than the .20% average on a savings account.  If you need something where you can have more access to your money, you can always get a new product called a risk free cd.  Where you can withdraw money from it for no penalties.

The stock market would just (in my opinion) be a terrible risk right now.

Good luck! let me know if you need anymore help!!

Answer 3

put about 500 of it into the stock market and dream for the best thats what i did when i was 16 and i made 1500 off my 500 in 6 months so try it out but get some help cuz ur young

Answer 4

Stay out of the stock market.  A CD is an excellent idea.

Answer 5

That's very impressive to have saved up that much at your age.  Your good money habits will seve you well later in life.

If this is money you will not need for years, then I would recommend you put it in an index fund.  Yes, the market is down but that is exactly why you should invest your money now.  T he economy will rebound eventually so as long as you have a long-term focus, you will do fine.

However, if you expect using the money in the near future (i.e. in the next two years for college or a car etc.) then you should leave it in a money market account or in CD's.

Answer 6

A good growth and income fund should work for you. Some risk but not too much. T. Rowe Price is my favorite family of funds. Here is their growth and income fund:

http://www.troweprice.com/common/indexFu...

Good luck.