I’m a 20 year old college student with about $20k in checking, 2k in savings, and 3k in a CD that expires in june. I’m trying to save the most I can as i am going to be an elementary teacher. Should i open roth ira now? Put more into my CD when i renew it? All advice is appreciated!! I do have some student loans to pay back but i think it’s less than 9k at the moment.
what’s my best option for saving/making money as a future teacher?
byu/imnotwhouthinkiam2 inpersonalfinance
Posted by imnotwhouthinkiam2
3 Comments
If you have earned income you can contribute to an IRA
Some cash on hand is going to be a good thing. You’ll need to look at wardrobe; planners; all the apartment furnishings; fun little classroom decor
Don’t be afraid of summer jobs; especially your first 3-4 years. Then as wanted or needed
Understand how your state pension plan works
Oh- keep up with your continuing credits and all that jazz. No one likes the “surprise you need 18 credits by the end of next school year”
Keep around 6months expenses in a HYSA.
Checking is about 1-2months, bills go out, paychecks come in, but thats all checking is for.
Ignore CDs, you don’t need that.
Then open a Roth IRA as long as you have earned income., up to $7500/year.
Anything else can be kept in the HYSA for short term goals.
If you still have more for longer term, that goes to a regular brokerage.
Once you start working, you’ll probably get access to a 403b. So you’ll want to contribute to that as soon as you have access.
Sounds like you are asking about a framework for what to do with money.
Start with reviewing the Prime Directive in the PF Wiki. It will answer your question and many other questions you didn’t realize you should be asking.
* https://www.reddit.com//r/personalfinance/wiki/commontopics