save how, why, what?
March 11, 2006 8:02 AM Subscribe
How much should a teenager save? And how and why? (Plus complications)
posted by anadem to work & money (13 answers total)
Our daughter is working hard and saving money for a trip to Europe this summer (she'll be eighteen then), and to get a car. She has checking and savings accounts and manages her affairs well -- school is fine and social life is neither overblown nor neglected.
I'd like to encourage her to put some money into longer-term savings. What long-term goals should I suggest, how much should she save, and in what shape should it be saved?
Answers to the simple question would be nice, but there's more:
The extra problem is that I don't think this country's financial future is very pretty (nor the world's in general as we humans madly consume our way to ruin, but I try to keep such bleak views repressed. Life is hard enough for teenagers without being shown visions of coming miseries.) So I can't advise her to, say, open a CD account.
Is it possible, or advisable to try to build a nest-egg that could withstand turmoil? And if it is, then at what point do such savings become "usable"? To buy a house? To escape national economic collapse? For retirement? As capital and live off the interest? At this point the what-if's get too much, but any ideas will be helpful.