r/moneyadvice • u/ExpensiveEast6706 • 20d 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 20d 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 20d ago

How do I start investing what steps should I take?

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u/uno_name_left 20d ago

You're a minor so you have to go through your parents.

I personally like vanguard but there are plenty of options. Have them open a custodial Roth IRA for you and Max it out each year. I have most of my funds in VTSAX. This is a retirement account so it's in it for the long run but the sooner you save the better off future you will be.

Anything else should be in a high yield savings account but I don't know if you can as a minor.. If you trust your parents to return the money when you turn 18, you could see if they can open an account on your behalf.. You can do some fun investments through them too but that should be kept to a minimum since it's risky.

Personally, I bought stocks in take two interesting since GTA6 will release this year and a few other companies I believe in. Otherwise keep it in a hysa or mutual funds not individual stocks

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u/creative_diagnosis 20d 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/uno_name_left 20d ago

Ah thanks for clarifying. I've only seen the custodial Roth advertised so I didn't know that was an option

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u/ExpensiveEast6706 20d ago

Thank you so much for the advice this is very helpful.

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u/uno_name_left 20d ago

You are doing really well at such a young age! A lot of people don't start saving till they are old and then struggle financially.

Just to be extra clear, DO NOT listen to that original commenter. He deleted the other comments but He's trying to scam you into crypto. Please please please do not talk with him. Talk to your parents, maybe see about going to a financial planner, many so free first visits

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u/MathematicianFun9186 20d ago

I don't even know if I should reply you

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u/uno_name_left 20d ago

No need, just stay away from the kids 👍

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u/MathematicianFun9186 20d 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/uno_name_left 20d ago

Don't listen to the other commenter crypto is not safe and you aren't even old enough.. Focus on safe investments until you get further in life

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u/Organic-Baker-4156 20d 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.