I wanna buy a Switch 2 and a couple of games with my first paycheck or if I have enough I mean but like if I can that will be the entire paycheck and like I’m 15 I don’t have bills or anything but should I like start saving or investing it idk I’m just worried I’ll mess it up cause I’ve never had so much money(like 600 dollars) at one time
Would it be a dumb idea to spend my first paycheck on something I just want
byu/Free-Elk5888 inpersonalfinance
Posted by Free-Elk5888
10 Comments
If you’re 15 then hell yeah, buy something for yourself. Start saving with the next one.
Congratulations on your first paycheck! I think you should definitely spend it on whatever you want and then get serious going forward
The responsible thing is to save some of that money. At 15, responsibility is best exercised in moderation. I’d buy that switch 2.
I say go for it! Enjoy your first paycheck
Hey kiddo, if you have a dream for your first paycheck – and don’t need to pay bills yet or save up for a car – knock yourself out! You can think about more “mature” things like saving for your next check. But this is a big enough deal to celebrate a little bit.
When you’re 50, you’ll look back and have a fond memory of what you bought with the first money you earned. Just make sure it’s something you want.
(also consider whether the Switch 2 has enough games you actually want to play to make it worth the time you put in to earning that money!)
Not all paychecks will be so fun to spend, so as long as you get ready to save some from every check going forward, you don’t need to feel guilty about buying some toys. I hope you have some adults in your life helping you understand how to manage money responsibly.
Practice makes perfect.
Practice good financial habits now and your life will be 100x better as an adult.
Practice saving a large percentage of your check and set aside a budget for the switch 2.
Dont buy it immediately, buy it after you have created a nest egg and could comfortably pay your bills (remember you are Practicing and every penny you save now may be FOOD or shelter when you NEED it later)
You are smart to be thinking about how to save your money at 15 – I wish I had been that wise! Treat yourself with your first paycheck and then build in a savings routine for your next checks so it is already habit as you start to make more and more money in your career. Take a percentage of your paycheck that is automatically added to your savings account, and then another percentage that is automatically invested in at something like the S&P 500 ETF. The more you can save this way, the better. This will make sure you have emergency funds in your bank for quick access or for occasional needs/splurges, and you are building compounding interest early. This of course is traditional advice, and I am certainly not a financial expert, but I think the economy will be going through some tough times, so I would definitely recommend following some financial experts online who may be able to provide better guidance, especially in the case of a recession or long economic reset.
Reward yourself for working the job and enjoy it. But don’t make a habit of it, so after this you should listen to that voice in your head and set yourself a budget. I’d encourage you to find a balance between enjoying your income (to the extent that you can if/when you do have bills) and saving wisely. Splurge this check, then sit down and decide what percentage you want to save and what percentage you’d like to spend per paycheck and then do your best to stick to that. Best of both worlds.
Half for you, half for the bank account.
3 things to think about:
1. Having a lot of money for the first time is a great feeling but if you work regularly, you will get that around the same amount, or more every few weeks. The money only stops coming in when you stop working so there is no rush.
2. Buying yourself something nice because you can, feels good. Knowing you can buy yourself something nice whenever you want feels better. Saving up can be really good for your mental health.
3. Investing for your future feels great, but it is not just about putting money away in a bank. Investing means doing something now for a benefit later. You can start investing for transportation (car), location (home), health (gym/sports), and knowledge (school) as well as wealth/ retirement.
Also, even if you dont have bills yet, paying something now will help you understand them later and possibly take a burden off your parents so consider helping out with something like a cellphone bill or internet.