Also, to the person who said that it'd be a waste of time AND money... why would it be a waste of money to put my check in the bank?
Good Idea To Open A Bank Account? Or Not?
- Thread starter Juxtaroberto
- Start date
Juxtaroberto;3001421; said:
Because the absolute lowest return for your money is sitting in a bank.
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LOL gee, thanks. I feel a lot better now. =)
Juxtaroberto;3001497; said:
Return for your money = the money that you get by using your money.
Ok, look at it this way: I just gave you $1,000 cash. You run off to the bank, and put it in the bank. I gave Johnny $1,000 cash. He runs off, buys a lawn mower, and cuts lawns for a year.
I come back a year later. You have $1,020 and Johnny has $10k+, with assets.
Johnny had a better return for his money.
Juxtaroberto;3001256; said:
If it's only a summer job, I'd check to see what the banks requirements are. If you are under 18, they might not give you a checking account and they may have an amount required to be in a savings account.
It also depends on what kind of discipline you have with money. If you just cash the check every time, you'll most likely have it all spent before you get the next paycheck. Then when you get your last pay check of the summer, you'll look at how much you've made since starting work, and wonder what in the world you did with it all.
My advice would be to open a savings account, but only if you have the discipline to leave it there. Otherwise, just cash the check and maybe get a parent to hold some of it so you can't spend it all.
Hi.
Disclaimer: I'm old. Not as old as your mom, but... (ok got the mom joke in..)
To your questions.
1. Is it safe to put your money in a bank? Yes. The FDIC insures bank depositors up to a very large amount. It used to be $100,000 and is now higher. If you get that much money saved up you should talk to a financial planner, not fishkeepers. $100 is the minimum deposit at a lot of banks. You probably won't be able to get a checking account if you are under 18, but a savings account should be doable. Some banks give higher interest rates on their "juvenile" accounts.
2. How did people "lose all their money"? These people didn't have money in banks. They bought "stock", which are tiny little slices of ownership of a company. I for example own some Krispy Kreme stock. That means I can go into my local krispy kreme and think... I own 0.00000002% of this store. That is my molecule of Krispy Kreme right there. Unfortunately, a lot of stocks isn't as desirable as they used to be so the prices have gone down. For people that had all of their savings in stocks, the value of those stocks has gone down. In a few cases the stock has become worthless. Many people had borrowed money to buy stocks. This is called "buying on Margin" or "leverage". These people lost money and had to pay back the loans too. All investments, even putting cash under your mattress, have some risk. Borrowing money just to risk it doesn't seem that smart in hindsight.
3. Should you put your money in a bank?
This one is more subjective and there are no "right" answers. If I could go back in time and talk to myself, I would say..
Self, split it into 3rd's. Take 1/3 and stick it in your wallet. Spend some of that on yourself. Also spend some of it on others. Helping someone else really does feel good.
The next 1/3 should go to the bank. That is the start of your savings. I'm guessing you probably want a car soon? Savings.
The final 1/3 should go to work. How does money go to work? Good question. It can work a little bit gaining interest in a savings account. It might go to work for you by buying some stock. (Yes, you too can buy 0.00000002% of a Krispy Kreme.) (or 50% of GM.
) It could also go to work by making you an entrepreneur. That is someone who tries ideas to make money. A few people on here have suggested doing the buy/sell thing on craigslist and eBay. A few others have suggested breeding fish. I might consider raising aquatic plants, but plants and fish are my thing.
4. Summer Job. If you want the summer job, more power to you. If you are ambivalent about it and just want the money, then that's okay too. As a teenager you have a remarkable amount of freedom*. Enjoy it while you can.
* - Even though it doesn't feel that way.
If I could talk to myself I would say to me. "Bagging Groceries is a dead end. Quit. Go work at that trout farm in bucksnort or work at a farm. Work for free if you have to. Take Ag and shop classes. Working in computers looks fun now, but in 15 years you are going to be bored to tears every single day. While you are at it, kiss that Sara girl."
HTH,
Ellie
Disclaimer: I'm old. Not as old as your mom, but... (ok got the mom joke in..)
To your questions.
1. Is it safe to put your money in a bank? Yes. The FDIC insures bank depositors up to a very large amount. It used to be $100,000 and is now higher. If you get that much money saved up you should talk to a financial planner, not fishkeepers. $100 is the minimum deposit at a lot of banks. You probably won't be able to get a checking account if you are under 18, but a savings account should be doable. Some banks give higher interest rates on their "juvenile" accounts.
2. How did people "lose all their money"? These people didn't have money in banks. They bought "stock", which are tiny little slices of ownership of a company. I for example own some Krispy Kreme stock. That means I can go into my local krispy kreme and think... I own 0.00000002% of this store. That is my molecule of Krispy Kreme right there. Unfortunately, a lot of stocks isn't as desirable as they used to be so the prices have gone down. For people that had all of their savings in stocks, the value of those stocks has gone down. In a few cases the stock has become worthless. Many people had borrowed money to buy stocks. This is called "buying on Margin" or "leverage". These people lost money and had to pay back the loans too. All investments, even putting cash under your mattress, have some risk. Borrowing money just to risk it doesn't seem that smart in hindsight.
3. Should you put your money in a bank?
This one is more subjective and there are no "right" answers. If I could go back in time and talk to myself, I would say..
Self, split it into 3rd's. Take 1/3 and stick it in your wallet. Spend some of that on yourself. Also spend some of it on others. Helping someone else really does feel good.
The next 1/3 should go to the bank. That is the start of your savings. I'm guessing you probably want a car soon? Savings.
The final 1/3 should go to work. How does money go to work? Good question. It can work a little bit gaining interest in a savings account. It might go to work for you by buying some stock. (Yes, you too can buy 0.00000002% of a Krispy Kreme.) (or 50% of GM.
) It could also go to work by making you an entrepreneur. That is someone who tries ideas to make money. A few people on here have suggested doing the buy/sell thing on craigslist and eBay. A few others have suggested breeding fish. I might consider raising aquatic plants, but plants and fish are my thing.4. Summer Job. If you want the summer job, more power to you. If you are ambivalent about it and just want the money, then that's okay too. As a teenager you have a remarkable amount of freedom*. Enjoy it while you can.
* - Even though it doesn't feel that way.
If I could talk to myself I would say to me. "Bagging Groceries is a dead end. Quit. Go work at that trout farm in bucksnort or work at a farm. Work for free if you have to. Take Ag and shop classes. Working in computers looks fun now, but in 15 years you are going to be bored to tears every single day. While you are at it, kiss that Sara girl."
HTH,
Ellie
RyanS;3001554; said:
My friend Lesly is with a bank... "American something", or "Something American" and she's under 18, and she has a checking account. The only thing was that a parent had to be present when the account was opened.
EllieGreene;3001584; said:Hi.
Disclaimer: I'm old. Not as old as your mom, but... (ok got the mom joke in..)
To your questions.
1. Is it safe to put your money in a bank? Yes. The FDIC insures bank depositors up to a very large amount. It used to be $100,000 and is now higher. If you get that much money saved up you should talk to a financial planner, not fishkeepers. $100 is the minimum deposit at a lot of banks. You probably won't be able to get a checking account if you are under 18, but a savings account should be doable. Some banks give higher interest rates on their "juvenile" accounts.
2. How did people "lose all their money"? These people didn't have money in banks. They bought "stock", which are tiny little slices of ownership of a company. I for example own some Krispy Kreme stock. That means I can go into my local krispy kreme and think... I own 0.00000002% of this store. That is my molecule of Krispy Kreme right there. Unfortunately, a lot of stocks isn't as desirable as they used to be so the prices have gone down. For people that had all of their savings in stocks, the value of those stocks has gone down. In a few cases the stock has become worthless. Many people had borrowed money to buy stocks. This is called "buying on Margin" or "leverage". These people lost money and had to pay back the loans too. All investments, even putting cash under your mattress, have some risk. Borrowing money just to risk it doesn't seem that smart in hindsight.
3. Should you put your money in a bank?
This one is more subjective and there are no "right" answers. If I could go back in time and talk to myself, I would say..
Self, split it into 3rd's. Take 1/3 and stick it in your wallet. Spend some of that on yourself. Also spend some of it on others. Helping someone else really does feel good.
The next 1/3 should go to the bank. That is the start of your savings. I'm guessing you probably want a car soon? Savings.
The final 1/3 should go to work. How does money go to work? Good question. It can work a little bit gaining interest in a savings account. It might go to work for you by buying some stock. (Yes, you too can buy 0.00000002% of a Krispy Kreme.) (or 50% of GM.
4. Summer Job. If you want the summer job, more power to you. If you are ambivalent about it and just want the money, then that's okay too. As a teenager you have a remarkable amount of freedom*. Enjoy it while you can.
* - Even though it doesn't feel that way.
If I could talk to myself I would say to me. "Bagging Groceries is a dead end. Quit. Go work at that trout farm in bucksnort or work at a farm. Work for free if you have to. Take Ag and shop classes. Working in computers looks fun now, but in 15 years you are going to be bored to tears every single day. While you are at it, kiss that Sara girl."
HTH,
Ellie
AWESOME ADVICE! THANK YOU so much for taking the time to type all of that down!
Yeah, I made the calculations, and after summer is over my job should provide me with a little over $3,000.
And yeah, I want NOTHING to do with computers, not as a living. I think I want to be a high school teacher. Maybe I could take over my school's AP Environmental Science class. AWESOME class.
