As the title reads I am 17 (18 in 6 months) and have 15k saved up, I work a job in which I make 300 a week and currently want to draw a plan out on how I can use these savings to prosper in my later years and avoid stressing about money. I currently own a 2007 Honda which will work as my car until my 20s which than I want to buy my own car. I am also in trade school learning welding/metal fabrication. Does anyone have any real advice for me on what I should do, and prepare for the years ahead. This is my first and probably only time using reddit haha I don’t know where else to reach out.
I am 17 and have a little over 15k saved up what should I do?
byu/Ok_Coyote4364 inpersonalfinance
Posted by Ok_Coyote4364
9 Comments
Open a 401k and touch that money as little as you possibly can. You are VERY lucky to have this much at your age saved up
You’ve got a good start, honestly. Got a job, learning a trade and, crucially, you already own your vehicle. Don’t rush to get a new one unless you absolutely need it. Cars are money sinks
If I were in your situation, I’d put about $5000 in a high yield savings account to start your emergency fund, and put the rest in an ETF or other investment and don’t touch it ever.
Other than that, it’s important to learn how to budget and not to take life too seriously. You gotta lot of years ahead of you and a lot of time to think about what you want out of life
Open a brokerage account with Vanguard where you can buy stock indexes like VTI or SNP500
Not sure which state you’re in but DO NOT gamble it . At 21 yr old I had 10K in my account and was introduced to sports betting and I lost all of it gradually within a year and a half and eventually put myself in 5K worth of debt. Also if you don’t mind driving , you could find a company who will pay for your CDL school and get a job driving commercial vehicles. My company paid for mine and was done with training in 2 months . I average $1,300 a week .
I’m 40. I was in the same place as you when I was your age. A few years later, I graduated college right into a recession and I couldn’t find a job for a very long time. Having that savings on hand saved my life.
Keep making good choices, keep your spending low, and you’ll be setting yourself up well to handle whatever comes next.
Use it as a down payment on a house. Have your friends live with you and charge them rent. You’ll build equity, live essentially rent free, and have some fun.
Was in similar spot at your age. Just throw it in a savings account and keep it until you need it for a house/car/etc. Getting the extra 2-3% interest over the next few years isn’t going to move the needle. Just keep saving, and re-evaluate every 10k you save.
I would seriously consider putting as much as you legally can (you can only put in earned income in the same year you contribute) into a Roth IRA. Assuming you allocate the money to something like the S&P 500 like VOO it’ll double every 7 to 10 years. Starting at 17 and doing this reliably every year for the first 5-8 years you’ll be set for retirement. I know that’s hard AF to think about tying up “forever” like that, but it’ll pay handsomely.
$15k sounds like a lot as a teenager, but that’s basically a light emergency fund as an adult.
Stick it in a high yield savings account while you train for a career or start a sustainable business. Consider investing half or so in a low-cost broad-based index fund.