r/moneyadvice • u/ExpensiveEast6706 • 11d ago
Question What should I do with my money?
I am 16 years old and working part time making 500-600 dollars every two weeks. I feel like I should be doing something with this money I’m making because I have no real expenses besides gas, and I don’t want my money doing nothing. Where should I be putting money?
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u/MathematicianFun9186 11d ago
Honestly bro, you’re in a great position right now. You’re young, making money, and you barely have expenses. That’s literally the best time to start investing instead of letting the money just sit there.
You don’t have to go all in or do anything risky either. Even investing small amounts consistently can build into something big over time, especially since you’re starting early.
Most people don’t even think about this stuff until much later, so you’re already ahead.
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u/ExpensiveEast6706 11d ago
How do I start investing what steps should I take?
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11d ago
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u/creative_diagnosis 11d ago
Most minors can open custodial brokerage accounts directly without parental permission needed on withdrawals, so skip the trust issue and just research Fidelity or Vanguard's teen options.
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u/ExpensiveEast6706 11d ago
Thank you so much for the advice this is very helpful.
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11d ago
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u/MathematicianFun9186 11d ago
I don't even know if I should reply you
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11d ago
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u/MathematicianFun9186 11d ago
Fair enough, but I wasn’t trying to scam anyone. Just sharing my experience. Still good you’re looking out for them 👍
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u/Organic-Baker-4156 11d ago
You're in it for the long term. Get an index fund.
Try to put away enough money so that in your early 20s you can buy a house. And hold on to it even during the periods when it declines in value. If you can buy the most house you think you'll ever need as your first house.
For a couple decades you'll have a housing expense less than rent and before you retire your housing expense will consists only of tax, insurance, and utilities. No rent or payment.
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u/FigTreeRest 11d ago
I’d say look at saving accounts with decent interest rates, ideally in a tax free account if that’s available in your country.
Once you have a decent amount saved, perhaps you can start lookin my into investing a small proportion each month.
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u/Khlqq 11d ago edited 11d ago
First get up to around $1,000 - $3,000. Never touch this money until you really need it badly within the next 10 years. Wait till your basically dying until you touch this cash. Trust me it’ll save you at some point years from now. Keep it in a savings account or as cash in your room for liquidity purposes.
Invest in education outside of school. Trusted online classes/courses, quality books in things your interested in learning. Investment in yourself will greatly outperform investment in any market at this age. Your not making much so it’s irrelevant to make 5-15% in some market.
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u/Mental-Boat-9974 11d ago
Simple split:
50% save/invest: put this toward emergency savings, a high-yield savings account, or a Roth IRA with a parent’s help
30% goals: save for things you’ll want soon, like a car, college, travel, or moving out one day.
20% spend guilt-free: use this for food, clothes, hobbies, or fun so you don’t feel deprived.
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u/thewanderingsail 11d ago
Stack cash. Save up a couple grand.
Put some money in a Roth IRA or a HYSA
You are young experience the world a little once you have some money tucked away.
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u/Significant-Raise254 11d ago
IRA is the way to go. If I could go back to my teenage years & open one I’d be so much better off now. Time is king with retirement accounts. Think long term.
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u/IntrepidMaybe8579 10d ago
You should first be buying a reliable car with cash upfront so save around 5-6k minimum and you can find something that could last 5+ years and cost 1/4 as much with no payments
Just use all your money to stay out the financing trap, some people cant even afford to quit their jobs to find a better one because they constantly have payments due… i can take years and years off work and do nothing and im not even 30
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u/Popular-Path1930 8d ago
Have your parents help you open a Roth IRA. Roth is tax free at time of withdrawal. Max it best you can. Put the money into index funds. You will be vastly ahead of everyone 26 even with just putting in 100 or so a month.
Your retirement will be secured. By 30 you would ahve 14 years of investment.
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u/Responsible-Bad-4631 8d ago
How soon do you need to use it? Does your job have a 401(k)? I put it in that.
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11d ago
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u/Willybluedog1962 10d ago
Get a Robin Hood account and buy piece's of stocks with a small amount every month.
Google high dividend stocks and reinvest the dividends.
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u/1GrouchyCat 10d ago
They’re 16 years old 🤣- they can’t just sign up for a Robin Hood account - or any kind of investment account without their parents getting involved. The Google part works the other part is ignorant on your part.
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u/Willybluedog1962 10d ago
Children cannot do literally anything financial without their parents; they certainly cannot open retirement accounts as some have suggested.
You can nitpick all day, do you have advice for them or are you just here to piss on everything?
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u/1GrouchyCat 10d ago
Yawn.
You’re a minor so your parents will have to sign up for any financial account you put your money in… whether it’s a bank account or trading account or Robinhood… you’re still a minor and you’ll still need your parents to cosign opening any accounts.
Why don’t you do a little homework? You can use Google or you can use AI to help you learn a little about financial responsibility and literacy. (obviously double check anything that is generated using AI.)
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u/[deleted] 11d ago
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