Retirement? Im 16 been working at Kmart for 2 months and dont know how to set up a savings plan.?

Question

My mom usually cashes my checks(lame) but i wanna start doing it myself. I also want to start saving up for retirement but dont know how to go about doing it. Like should i open up 2 savings accounts? one for me too use and another not to be touched for retirement. i was thinking of saving 20% of each check

Answer 1

Good for you that you are thinking about your future now.  The younger you start to save the more your money will grow through compounded interest.

Go to your local bank and talk to one of the people there.  Tell them what your goals are and they will tell you the different plans they have.  You probably want a regular savings and then a long term savings with a higher interest rate.  To get that higher interest rate, you will need a minimum balance, like $500 or $1000.  Each bank is different.  You can always accumulate money in your regular savings account and then transfer to a higher interest account when you get that minimum amount.

Make sure you feel comfortable with the people you'll be dealing with and the people who will handle your money.

Answer 2

Great Time to start!  it's recommended that you put away at least 10 % of your take home pay but seeing as your likely still at home 20 % is reasonable.  how about 10% in rrsp and 10% in savings? you can always talk to your bank about setting up an

an RRSP is a Registered Retirement Savings Plan

an Individual Retirement Account (IRA) is the american equivalent

Answer 3

Lol Idk how to do that but I found it funny you work at K-Mart to and are around my age (I'm 17) lol. I've been at mine for like a month. I'm kinda in the same boat with checks lol. I have my mom put it in my account that I'm using to save for a car.  

Answer 4

At 16 there is nothing you can do about your mom cashing your checks but to ask her to save some back for you. However, you should look into the availability of a 401k plan, how long you have to work to get one, or what position you might have to hold. That way, the money will be taken straight from the check and matched for you by the company. However, that might not work because you may be too young for them to make an investment like that. If that is the case, then just find a high yield savings account, ing has a really good one, and save as much back as you can until a retirement plan is available to you. After that, you can put the amount currently saved into a high yield CD, saving even more. I hope this helped

Answer 5

Savings accounts are lame.  Only problem is, they are probably going to be the only real thing open to you with your limited income and your age.

Answer 6

At your age I would keep it simple, first if your employer offers a savings plan and they will match what you put in each week do it now. some only match a percentage but is still good. along with that start a savings account and start putting in a little every week and don't touch it. most important is to contribute something every week, (pay yourself first) at your age and you start like this, you will learn as you go but will also have something to work with. I am 50 now and have been retired for 8 yrs. just recently started a real estate corp. in Costa Rica. hope this helps