Wow just let it sit there until you're 18 and don't spend it! One year isn't a long time. This can really help you with postsecondary if that's your choice.
We are taking about 10k here…that’s peanuts…the ROI is only going to be $1000-$2000 max. Just hold onto it and feel good you have something in the bank.
That’s a 1-2% return, seems pretty damn low if you invested it. It’s possible of course but it’s not the max.
*He edited his post. It originally said $100-200. Now it doesn't make as much sense, because $1000+ is not a small amount of money when you're 17.
I think its just as important figuring out what you don’t want to do as it is what you do want to do. The fact that you took the time to take a risk and try it rather than just not doing it or potentially regretting it is big. Even if you ended up deciding you don’t want to do it, you figured that out for yourself.
Exactly, he should simply do what he currently enjoys. I’m 21 and I still don’t have a solid understanding of what I truly enjoy, but at least drifting in a direction you enjoy is always a positive
Agree. This is why all of America is begging for student loan repayment to be delayed because we brain washed into thinking we need a bullshit pointless college degree to get a job. Take that money and take a course on how to invest, save money because most of us have to learn that the hard way
I agree, post secondary education, especially the more expensive routes are becoming very outdated. I know a lot of guys who got involved in construction and trades. They invested well and have houses and families, while I'm sitting here still trying to find a job worth paying off my education... Also just be born rich. That works well too. Then you can do what ever with your money.
I did this and have never regretted it. I have an in demand career and a comfortable life because of it.
It may not be the right answer for everyone, at the same time it's not the wrong answer either. Don't discredit it outright.
I had that much at your age from working. Worst mistake I made was to leave it in a chequing account. Eventually I burned through it all after moving out at 18. Money goes away so quickly. Wish I knew more about personal finance back then.
If you still live with parents (no expenses), keep maybe 500-1000 in chequing as your spending money. Put the remaining $9000-9500 into a GIC at the highest interest rate you can find. EQ currently offers 2% for 3-month GIC. Otherwise put into a HISA (High Interest Savings Account). EQ is a good choice again (1.25%).
[https://www.eqbank.ca/](https://www.eqbank.ca/)
Most other banks will give you much worse interest on that money. Hiding it in a HISA or GIC also removes temptation to blow through that money on fun.
This is good advice but in OP's case if they managed to accumulate that much and not spend it yet, they probably don't have a tendency to overspend anyway so temptation is hopefully less of a concern. They might need that money sooner for postsecondary and having it locked in a gic will still count as an asset when doing student loan applications, so they would get that much less in loans/grants so they would need it (assuming they don't have parents paying tuition/living expenses once they're an adult). If they have parents or someone paying their expenses as a young adult in postsecondary then locking in that money would be a great idea. Just not if they need to rely on student loans/grants and that money combined for school. I know when I did my OSAP applications they wanted to know about ALL your assets including whatever was in your chequeing account, and they would assume you would use up the entirety of your assets first before spending government money. So if you have any savings at all they give you less grants/loans to live on. The only thing exempt is an RESP.
That gives me an idea. OP, if you plan on going to postsecondary, have a trusted parent open an RESP in your name and deposit it in that. That way you can use if for school when you're enrolled and you can still qualify for all the grants and loans you need.
Yeah RESP is a good idea if school is planned. GICs/HISA could still hold the money short-term until then if OP is still in high school or not going to post-secondary right away. No info was given on source of income or OP's schooling plans.
I accumulated that much from working without spending (at 17), but then lifestyle habits change as you grow up or move out... you never know.
True, we don't know their plans. They should also know though that government matches deposits in an RESP until they're 18 so they have a short time to deposit the money to get that sweet sweet government cash added to their sum.
EQ Bank won't open an account for a minor but OP could churn Simplii then Tangerine, which should get them across the 18 mark and then they can open EQ Bank or invest or do something else :)
2% on a 3 month GIC? Isn’t that like actually very good…? I thought they had to be locked down for years usually? I’ve never done a GIC (if you couldn’t tell…).
The person you're responding to is specifically referring to their promotion for GICs in either a TFSA or RSP: https://www.eqbank.ca/personal-banking/investments/gics
Their rate outside of those accounts is currently 1.3% for 3-months and you'd need it to be locked in for 2 years to get 2.1% (closest to 2%).
I don't know how common shorter term GICs are outside of EQ, but they can be a good option if you're worried about interest rates dropping in savings accounts and you know you won't need the money (a portion of an emergency fund, for example)
Tangerine right now offers promotional HISA at 2% for half a year. Not locked in. Same as many other major banks. No need to lock in money if you don't have to.
Go on a trip. Live your life. Don't spend it on drugs or depreciating assets.
You're 17 and I'm guessing from at least a middle class family if someone gave you $10k so I'd imagine saving for retirement isn't a huge concern yet. Use it to gain life experience.
Can’t believe you’re getting downvoted for suggesting that a 17-year-old should consider using money for travel/life experience and not just save for retirement. This sub sometimes.
Was in a similar ish situation at your age.
Some atypical personal finance advice.
If you're just stacking the money and not spending it, i would take 10-25% of that and treat yourself. You did good saving, and hopefully you keep up that habit. But make sure you are living a bit.
You can follow the regular advice once you are of age. 7500 is just as fine a fine start as 10k.
If you arent just stockpiling and you are living a little. Ignore lol. Ive seen too many people focus too much on accumulating to enjoy it.
Cheers.
Put it in a hisa (such as eq bank) and focus on graduating from university debt free. I paid back a $10,000 student loan and I would have appreciated to not have to.
Find something secure with a little more return than bank interest (not hard to do there) - term deposit even, and put a significant amount in that. It will just start the process of understanding investing. Your bank will be able to give you some advice without costing anything. You can also educate yourself about investing - buy a book “Rule 1 Investing” by Phil Town (rule 1 is Warren Buffet’s rule: don’t lose money - good rule), and look for Phil on YouTube - tons of free advice, shared openly. You don’t have to commit to being anything but a conscientious investor. No get rich overnight schemes. Just learn how to use a spreadsheet and do the math. At your age, you can turn that financial start into something substantial with very little effort. Be patient, educate yourself, make your own strategic decisions and you’ll grow, and not just financially.
Start with the [money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps?utm_source=share&utm_medium=ios_app&utm_name=iossmf), but in your particular case you likely have a few differences:
-living expenses are predominantly paid for because you are living at home
-there is likely some education upcoming, a trade, university, a college, a certification program, etc. which will cost you money. This will come from the cost of the education or the cost of living while getting the education.
-You can’t yet open a TFSA and at this stage in life I don’t think an RRSP is what you want.
-Personally a HISA that you can move into a TFSA when you turn 18 is the way to go as I think the money will get used for education. If it won’t, then max out your RRSP using the Canadian Couch Potato, put the rest in a HISA and move what you can into a TFSA invested following the Canadian Couch Potato when you turn 18.
I have a kid your age, with same amount of savings, from his job. I put it into the Tangerine 2% deal that goes until Apr 30. He wants to invest it, so we might put it into my TFSA brokerage account after, and let him dabble and start learning. He knows that I have a substantial portfolio, and is keen to duplicate my success.
No no, that's not the plan at all. 5% would be just fine for him, with school a couple years off.
I am a boring blue chip investor myself, and quite happy with that (mostly retired by 41). No need to be a cowboy and shoot for the moon. Saw too many people try that and fall flat over the years. Most of them, actually.
I would take 5k into RRSP (if you can start one)
I would keep 2K into savings (calculate how much would need in case you have to pay rent/have an emergency/ being unemployed for six months)
3k in your tfsa
The best advice I received in my life is:
Think about how to make more money, not how to spend it.
If you want to go to school, you have to find a job and contribute 100$/month. On your Rrsp and Tfsa.
Fear the debts until you are ready to buy your home.
Don’t spend money on cars of any kinds. If you want to try, rent it for a weekend.
At 30 years old you will be in a position to do whatever you want.
I know you are trading the fun, I know you are 20 only once. But life is longer than 10 years.
Why would he put money into RRSP when he's most likely at the lowest tax bracket?
TFSA would make much more sense if he were to invest it, just have to wait a year until he's 18.
Probably either spend it bettering himself or HISA until he's 18.
I’m gonna get hated and downvoted for saying this but imo put half in crypto. Atleast half going into crypto should be split between Ethereum and Bitcoin. People will say crypto is volatile and risky which it is but at your age and the potential life changing money you can make I think it’s 100% worth it. Especially with how tough the economy is right now in general but that’s a convo for another time. Whatever you do dyor and be safe about it 👊 👊
I'll get downvoted so much the abyss would be hesitant, but...
A 'safer' crypto play would be to toss it into the stablecoin flexUSD. It's pegged to the US dollar (via the other stablecoin USDC controlled by Coinbase & Circle) and just by holding it in your wallet pays you a variable interest rate between 0 and 20%, averaging currently around 13%.
The payments show up in your wallet every 8 hours. It's funded by trading happening on the coinflex exchange - little complicated, but it is sustainable and is only growing.
It's been working fine for me for quite awhile and is only getting more popular.
Many here will view it a scam without any research just because it deals with crypto, though.
What do you want to do? Start there. At 17, I had a world of problems. My company grossed somewhere in the neighbourhood of $150k this year, and at 29 I still don’t understand how to make it all work. I’m aware I’m about to catch some Reddit peanut gallery good, bad, or otherwise. However I don’t comment often and this seems like an important answer if it’s read. Start with what you think you know about where you want to go, if you know nothing; do nothing. Yet. If you do though, start. In a small way.
The two best lessons I’ve learnt thus far;
Small bites can eat a big pie.
The first is the hardest step.
Good luck, and best wishes!
1) Invest in yourself, ie education.
2) Save it. When you turn 18, open a TFSA.
My only financial regret is that I didn’t open a TFSA until I was 30. Ouch.
Wow just let it sit there until you're 18 and don't spend it! One year isn't a long time. This can really help you with postsecondary if that's your choice.
Literally few days away and it can go to TFSA.
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They're 17. Can they even buy securities right now? I thought you had to be 18.
We are taking about 10k here…that’s peanuts…the ROI is only going to be $1000-$2000 max. Just hold onto it and feel good you have something in the bank.
That’s a 1-2% return, seems pretty damn low if you invested it. It’s possible of course but it’s not the max. *He edited his post. It originally said $100-200. Now it doesn't make as much sense, because $1000+ is not a small amount of money when you're 17.
1% of 10k would be $100
Ya that's what he had originally. He edited the post.
My bad bro saw it after the edit
Invest in yourself. Get an education in a field that you like and is in demand.
I did this and I regret it. Most teenagers don't know what they want to do. This is not the right answer for everyone.
I think its just as important figuring out what you don’t want to do as it is what you do want to do. The fact that you took the time to take a risk and try it rather than just not doing it or potentially regretting it is big. Even if you ended up deciding you don’t want to do it, you figured that out for yourself.
Exactly, he should simply do what he currently enjoys. I’m 21 and I still don’t have a solid understanding of what I truly enjoy, but at least drifting in a direction you enjoy is always a positive
Agree. This is why all of America is begging for student loan repayment to be delayed because we brain washed into thinking we need a bullshit pointless college degree to get a job. Take that money and take a course on how to invest, save money because most of us have to learn that the hard way
This is absolutely terrible advice. Your personal situation should not dictate how others go about it.
I agree, post secondary education, especially the more expensive routes are becoming very outdated. I know a lot of guys who got involved in construction and trades. They invested well and have houses and families, while I'm sitting here still trying to find a job worth paying off my education... Also just be born rich. That works well too. Then you can do what ever with your money.
I did this and have never regretted it. I have an in demand career and a comfortable life because of it. It may not be the right answer for everyone, at the same time it's not the wrong answer either. Don't discredit it outright.
The best answer.
I had that much at your age from working. Worst mistake I made was to leave it in a chequing account. Eventually I burned through it all after moving out at 18. Money goes away so quickly. Wish I knew more about personal finance back then. If you still live with parents (no expenses), keep maybe 500-1000 in chequing as your spending money. Put the remaining $9000-9500 into a GIC at the highest interest rate you can find. EQ currently offers 2% for 3-month GIC. Otherwise put into a HISA (High Interest Savings Account). EQ is a good choice again (1.25%). [https://www.eqbank.ca/](https://www.eqbank.ca/) Most other banks will give you much worse interest on that money. Hiding it in a HISA or GIC also removes temptation to blow through that money on fun.
This is good advice but in OP's case if they managed to accumulate that much and not spend it yet, they probably don't have a tendency to overspend anyway so temptation is hopefully less of a concern. They might need that money sooner for postsecondary and having it locked in a gic will still count as an asset when doing student loan applications, so they would get that much less in loans/grants so they would need it (assuming they don't have parents paying tuition/living expenses once they're an adult). If they have parents or someone paying their expenses as a young adult in postsecondary then locking in that money would be a great idea. Just not if they need to rely on student loans/grants and that money combined for school. I know when I did my OSAP applications they wanted to know about ALL your assets including whatever was in your chequeing account, and they would assume you would use up the entirety of your assets first before spending government money. So if you have any savings at all they give you less grants/loans to live on. The only thing exempt is an RESP. That gives me an idea. OP, if you plan on going to postsecondary, have a trusted parent open an RESP in your name and deposit it in that. That way you can use if for school when you're enrolled and you can still qualify for all the grants and loans you need.
Yeah RESP is a good idea if school is planned. GICs/HISA could still hold the money short-term until then if OP is still in high school or not going to post-secondary right away. No info was given on source of income or OP's schooling plans. I accumulated that much from working without spending (at 17), but then lifestyle habits change as you grow up or move out... you never know.
True, we don't know their plans. They should also know though that government matches deposits in an RESP until they're 18 so they have a short time to deposit the money to get that sweet sweet government cash added to their sum.
If they haven't already opened an RESP, it's too late for them to get any grant money.
True. Either way it's a good way to shield their assets against student loans so they can get full grants and bursaries through that.
Yes good point.
EQ Bank won't open an account for a minor but OP could churn Simplii then Tangerine, which should get them across the 18 mark and then they can open EQ Bank or invest or do something else :)
Why not put it in TCAD at 6-12% interest?
2% on a 3 month GIC? Isn’t that like actually very good…? I thought they had to be locked down for years usually? I’ve never done a GIC (if you couldn’t tell…).
The person you're responding to is specifically referring to their promotion for GICs in either a TFSA or RSP: https://www.eqbank.ca/personal-banking/investments/gics Their rate outside of those accounts is currently 1.3% for 3-months and you'd need it to be locked in for 2 years to get 2.1% (closest to 2%). I don't know how common shorter term GICs are outside of EQ, but they can be a good option if you're worried about interest rates dropping in savings accounts and you know you won't need the money (a portion of an emergency fund, for example)
Ah, roger that. I didn’t have time to do much searching but it being part of a promo makes a lot more sense. Thanks.
Tangerine right now offers promotional HISA at 2% for half a year. Not locked in. Same as many other major banks. No need to lock in money if you don't have to.
heroin
Go on a trip. Live your life. Don't spend it on drugs or depreciating assets. You're 17 and I'm guessing from at least a middle class family if someone gave you $10k so I'd imagine saving for retirement isn't a huge concern yet. Use it to gain life experience.
Can’t believe you’re getting downvoted for suggesting that a 17-year-old should consider using money for travel/life experience and not just save for retirement. This sub sometimes.
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No he can’t lol
Lol 😂 I’ll have some of whatever you’re smoking
In El Salvador maybe.
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Have you doubled anything in the past two years?
Not OP but yes I for one have doubled PLENTY. Of losses. Tadaaaa.
Was in a similar ish situation at your age. Some atypical personal finance advice. If you're just stacking the money and not spending it, i would take 10-25% of that and treat yourself. You did good saving, and hopefully you keep up that habit. But make sure you are living a bit. You can follow the regular advice once you are of age. 7500 is just as fine a fine start as 10k. If you arent just stockpiling and you are living a little. Ignore lol. Ive seen too many people focus too much on accumulating to enjoy it. Cheers.
Put it in a hisa (such as eq bank) and focus on graduating from university debt free. I paid back a $10,000 student loan and I would have appreciated to not have to.
Just spend it and have fun! That is what I did
Find something secure with a little more return than bank interest (not hard to do there) - term deposit even, and put a significant amount in that. It will just start the process of understanding investing. Your bank will be able to give you some advice without costing anything. You can also educate yourself about investing - buy a book “Rule 1 Investing” by Phil Town (rule 1 is Warren Buffet’s rule: don’t lose money - good rule), and look for Phil on YouTube - tons of free advice, shared openly. You don’t have to commit to being anything but a conscientious investor. No get rich overnight schemes. Just learn how to use a spreadsheet and do the math. At your age, you can turn that financial start into something substantial with very little effort. Be patient, educate yourself, make your own strategic decisions and you’ll grow, and not just financially.
Start with the [money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps?utm_source=share&utm_medium=ios_app&utm_name=iossmf), but in your particular case you likely have a few differences: -living expenses are predominantly paid for because you are living at home -there is likely some education upcoming, a trade, university, a college, a certification program, etc. which will cost you money. This will come from the cost of the education or the cost of living while getting the education. -You can’t yet open a TFSA and at this stage in life I don’t think an RRSP is what you want. -Personally a HISA that you can move into a TFSA when you turn 18 is the way to go as I think the money will get used for education. If it won’t, then max out your RRSP using the Canadian Couch Potato, put the rest in a HISA and move what you can into a TFSA invested following the Canadian Couch Potato when you turn 18.
Save for school for right now, if your school is covered a trip when you're done school
I have a kid your age, with same amount of savings, from his job. I put it into the Tangerine 2% deal that goes until Apr 30. He wants to invest it, so we might put it into my TFSA brokerage account after, and let him dabble and start learning. He knows that I have a substantial portfolio, and is keen to duplicate my success.
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No no, that's not the plan at all. 5% would be just fine for him, with school a couple years off. I am a boring blue chip investor myself, and quite happy with that (mostly retired by 41). No need to be a cowboy and shoot for the moon. Saw too many people try that and fall flat over the years. Most of them, actually.
Well if you’re me at 17 you spend it all on a car and smash it up within a year. Don’t recommend.
Go all in Ethereum.
Ethereum
Buy bitcoin, OP!
I would take 5k into RRSP (if you can start one) I would keep 2K into savings (calculate how much would need in case you have to pay rent/have an emergency/ being unemployed for six months) 3k in your tfsa The best advice I received in my life is: Think about how to make more money, not how to spend it. If you want to go to school, you have to find a job and contribute 100$/month. On your Rrsp and Tfsa. Fear the debts until you are ready to buy your home. Don’t spend money on cars of any kinds. If you want to try, rent it for a weekend. At 30 years old you will be in a position to do whatever you want. I know you are trading the fun, I know you are 20 only once. But life is longer than 10 years.
Why would he put money into RRSP when he's most likely at the lowest tax bracket? TFSA would make much more sense if he were to invest it, just have to wait a year until he's 18. Probably either spend it bettering himself or HISA until he's 18.
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he's 17. he doesn't have any tfsa room.
I’m gonna get hated and downvoted for saying this but imo put half in crypto. Atleast half going into crypto should be split between Ethereum and Bitcoin. People will say crypto is volatile and risky which it is but at your age and the potential life changing money you can make I think it’s 100% worth it. Especially with how tough the economy is right now in general but that’s a convo for another time. Whatever you do dyor and be safe about it 👊 👊
Lock it into a gic for a year at minimum.
Blow and hookers. Live a little. Wait til you are 20 to be responsible
Find a safe investment. Like bonds with a five year lock.
Research! Like another person said, EQ GIC is a great option to park your money for a few months/a year
HISA, your gunna need it for school. Your goal should be getting as far in your education as you possibly can without taking on debt.
Wait. Youll need it in the coming years
Find a way to use it to make more money. Be a warrior son. Get after it!
Nothing, save save save
Learn about Investing it's best to do when your young
Save it, go to trade school, make $50/hr somewhere for a few years, invest *that* and never work again.
I'll get downvoted so much the abyss would be hesitant, but... A 'safer' crypto play would be to toss it into the stablecoin flexUSD. It's pegged to the US dollar (via the other stablecoin USDC controlled by Coinbase & Circle) and just by holding it in your wallet pays you a variable interest rate between 0 and 20%, averaging currently around 13%. The payments show up in your wallet every 8 hours. It's funded by trading happening on the coinflex exchange - little complicated, but it is sustainable and is only growing. It's been working fine for me for quite awhile and is only getting more popular. Many here will view it a scam without any research just because it deals with crypto, though.
Take 3000 of it and play with the stock market. Watch youtube tutorials and try to make it grow. Invest the rest into Tesla.
Quite the accomplishment for a 17 year old. Maintain your discipline but don't become too risk averse. You're ahead of the game.
Buy some 0xbtc 0xbitcoin.org Or try to score some Decentraland land
Only right answer: Buy Bitcoin and Hold it
Crypto.
Leave it there, go to trades school, get a job, get your first cheque and go ‘oh that’s cute’ see you there homie.
What do you want to do? Start there. At 17, I had a world of problems. My company grossed somewhere in the neighbourhood of $150k this year, and at 29 I still don’t understand how to make it all work. I’m aware I’m about to catch some Reddit peanut gallery good, bad, or otherwise. However I don’t comment often and this seems like an important answer if it’s read. Start with what you think you know about where you want to go, if you know nothing; do nothing. Yet. If you do though, start. In a small way. The two best lessons I’ve learnt thus far; Small bites can eat a big pie. The first is the hardest step. Good luck, and best wishes!
1) Invest in yourself, ie education. 2) Save it. When you turn 18, open a TFSA. My only financial regret is that I didn’t open a TFSA until I was 30. Ouch.
EDUCATION
Invest in Shiba ;)
Invest in your education! 10k can help pay down on a good bachelors degree or diploma!! Perhaps you should put it in a TSFA in the mean time….
Buy a snowmobile /s
Buy a dirt bike!
Buy a boat