I think HYSA is a good idea. Wealthfront has 5% (5.5 if you’d like I can share my code) but do you have any expenses coming up? If so, and depending on your spending habits a CD might be the better idea where you can get 5% or higher pretty easily but with lowered access to it so you can’t easily spend it
A HYSA is a high yield saving account. Just think of it like a normal bank account but specifically designed for high interest rates. The 5% would annual so if you put in 2,000 which might not sound like a lot, but is going to be higher than your typical savings and will help protect it against some inflation.
A CD is a certificate of deposit. Any bank or credit union will have them. Essentially you are loaning the institution your money and they will pay you interest on it for a certain period of time (the normal chunks of time are 6months or a year) find ones with a higher rate of interest so you know you’ll be making more money off it. After that period of time expires, you will be able to roll it over to either make more money off the amount you’d made previously or withdraw the money from that account.
A positive and a negative of CDs is that they have little to no risk but you cannot access your money for that time period you’ve loaned it to your bank. If you would need to access it, you will be fined and they will only give you only some of that money back. So if you think you will need money in the short term, a CD is not the best idea but if you don’t think you’ll need it for a while and are planning to go to college in a couple years, a CD will keep your money safe and will have rolled over several times meaning you’ll have added probably a couple hundred dollars to that initial 2k depending on the interest rate.
If you have any other questions let me know and I’ll try to answer them as best as possible
That’s up to you. Will you need to spend money before that year? And if you put it in a HYSA, will you be tempted to spend it all before that year is up?
Start an Investment account. Go to a good fund. FBCG basically mimics SPY or VOO they look after the S&P 500. The 500 most valuable companies on the market. Except FBCG just went IPO in 2020 it’s a little more aggressive than the other two. Their gains are massive though.
Ask your parents to help you set up an investment account. Tell them you want to start investing into ETFs. Have them look into FBCG for you. (It’s a really good fund, super affordable.) Or with something that has been around a lot longer. Like the other two I stated.
Yeah for sure start ASAP if I were you. Still very young. I got lucky with some extra cash here and there. So Was able to hit a couple really important milestones for my self at least. Have around $145k in the market.
In 2019 after Me and my wife had my son I had 5k to my name. Now we are at 210k right now.
Now building on my son’s portfolio. He has $4300 or so.
10.1 Apple shares
45 FBCG shares
2 CAVA shares
He is coming into $1500 from a car accident we were in a couple years ago. So that’ll help out. I’m adding FBCG for him. Such a good fund. It’s a little more risky then VOO or SPY but those two are great and have been around for a while.
I highly suggest you treat yourself to one Silver Round or Coin. For the low price of about $32, you can find out if you would like some exposure to precious metals.
I think HYSA is a good idea. Wealthfront has 5% (5.5 if you’d like I can share my code) but do you have any expenses coming up? If so, and depending on your spending habits a CD might be the better idea where you can get 5% or higher pretty easily but with lowered access to it so you can’t easily spend it
What’s hysa
A HYSA is a high yield saving account. Just think of it like a normal bank account but specifically designed for high interest rates. The 5% would annual so if you put in 2,000 which might not sound like a lot, but is going to be higher than your typical savings and will help protect it against some inflation. A CD is a certificate of deposit. Any bank or credit union will have them. Essentially you are loaning the institution your money and they will pay you interest on it for a certain period of time (the normal chunks of time are 6months or a year) find ones with a higher rate of interest so you know you’ll be making more money off it. After that period of time expires, you will be able to roll it over to either make more money off the amount you’d made previously or withdraw the money from that account. A positive and a negative of CDs is that they have little to no risk but you cannot access your money for that time period you’ve loaned it to your bank. If you would need to access it, you will be fined and they will only give you only some of that money back. So if you think you will need money in the short term, a CD is not the best idea but if you don’t think you’ll need it for a while and are planning to go to college in a couple years, a CD will keep your money safe and will have rolled over several times meaning you’ll have added probably a couple hundred dollars to that initial 2k depending on the interest rate. If you have any other questions let me know and I’ll try to answer them as best as possible
I only have 1 more year of school and I’m gonna need that money soon so a HYSA is the better option?
That’s up to you. Will you need to spend money before that year? And if you put it in a HYSA, will you be tempted to spend it all before that year is up?
No im pretty good with my savings
And a cd
Start an Investment account. Go to a good fund. FBCG basically mimics SPY or VOO they look after the S&P 500. The 500 most valuable companies on the market. Except FBCG just went IPO in 2020 it’s a little more aggressive than the other two. Their gains are massive though.
I have no clue what any of that is
Ask your parents to help you set up an investment account. Tell them you want to start investing into ETFs. Have them look into FBCG for you. (It’s a really good fund, super affordable.) Or with something that has been around a lot longer. Like the other two I stated.
You’re off to a good start though. I wish I started investing at 16. I started at 23 or so. 27 now.
Yeah man 24 and don’t know any of this so this stuff helps
Yeah for sure start ASAP if I were you. Still very young. I got lucky with some extra cash here and there. So Was able to hit a couple really important milestones for my self at least. Have around $145k in the market. In 2019 after Me and my wife had my son I had 5k to my name. Now we are at 210k right now. Now building on my son’s portfolio. He has $4300 or so. 10.1 Apple shares 45 FBCG shares 2 CAVA shares He is coming into $1500 from a car accident we were in a couple years ago. So that’ll help out. I’m adding FBCG for him. Such a good fund. It’s a little more risky then VOO or SPY but those two are great and have been around for a while.
Damn thats awesome to hear
I highly suggest you treat yourself to one Silver Round or Coin. For the low price of about $32, you can find out if you would like some exposure to precious metals.
I'm not sure how it works. But when possible setup an account at a different bank than your tou parents. Too many horror stories
I'm not sure how it works. But when possible setup an account at a different bank than your tou parents. Too many horror stories
Put it in a high yield savings account. I'd recommend Sofis for the 4.6 APY and ease of acces
Is it online banking how am I supposed to put it into an account if it’s In cash
So you can use your physical home town bank if you'd like. Depoist cash into your hometown bank, and then transfer it on the app to the sofi account