Teenager with first job.

[fruitbowlk]

Hello Team,

My neiece just got her first job and I would love for her to start saving and investing now. She is 16 years old. Which investment company would be best for her since her paycheck would be very small but I still think she should be able to invest at least 25 dollars a month. I would like to get your opinons before I approach her. I wish When I got my first job at 15 1/5 someone would have helped me invest instead of taking my money for "rent"

Thanks.

[bigdaddybus]

I suggest stopping my your local Scottrade branch and chatting with them (if you have one in your area).

We opened a Roth IRA for my daughter(age 12) with $500 of money from babysitting. We chose 20 shares of Facebook for $25 a share as a long term investment that would interest her. Its up about 50% so far and has been a strong encouragement to her to invest.

We havent set up a monthly deposit for her, we decided to only make deposits and purchases of $500 or more so we dont get eaten up with fees. her next purchase will be a low fee target date fund by Vangaurd.

[SeanH]

Savings bonds from Treasury Direct. Can be purchased in small quantities. Avoids the hassle of fees. Avoids risk. Avoids the negative reinforcement that a downturn in stocks might elicit in someone not old enough to appreciate the point of savings. College and expenses are coming - the money will likely be needed soon. If you are feeling overly generous you can set a savings target for her and offer to match it or agree to match a certain percent.

[KTP]

If it were my child, I would set them up with a margin account at Optionshouse and teach them how to do bull call calendar spreads making money being short the weekly.

Just kidding. Well, I probably would do that with my kid so good thing I don't have any


What about setting up one of those high yield checking accounts? Some pay 5% on small balances if you do a certain number of debit card transactions per month. It might teach some responsibility and would pay far more than a CD or treasury bond.

Can a 16 year old even have a checking account though?

[Thrif-t]

If it were my child, I would set them up with a margin account at Optionshouse and teach them how to do bull call calendar spreads making money being short the weekly.

Just kidding. Well, I probably would do that with my kid so good thing I don't have any


What about setting up one of those high yield checking accounts? Some pay 5% on small balances if you do a certain number of debit card transactions per month. It might teach some responsibility and would pay far more than a CD or treasury bond.

Can a 16 year old even have a checking account though?

My DD's got them at 15 1/2 at our credit union. At 16 with a drivers license I'm sure they could get it at a bank.

[fruitbowlk]

Savings bonds from Treasury Direct. Can be purchased in small quantities. Avoids the hassle of fees. Avoids risk. Avoids the negative reinforcement that a downturn in stocks might elicit in someone not old enough to appreciate the point of savings. College and expenses are coming - the money will likely be needed soon. If you are feeling overly generous you can set a savings target for her and offer to match it or agree to match a certain percent.

Hello sean,

She already has savings bonds that is around 14 years old that I got for her when she was a baby, I"m not interested in doing anymore savings for her I have my old child to save for now. I just want to advise her save for her future and help her set herself up for success.

[fruitbowlk]

16/17 year olds she be able to open a checking account. I don't see why not. She already has saving accounts I just want her to use her money wisely. She is already introduced to Dave Ramsey and Suze Orman.

If it were my child, I would set them up with a margin account at Optionshouse and teach them how to do bull call calendar spreads making money being short the weekly.

Just kidding. Well, I probably would do that with my kid so good thing I don't have any


What about setting up one of those high yield checking accounts? Some pay 5% on small balances if you do a certain number of debit card transactions per month. It might teach some responsibility and would pay far more than a CD or treasury bond.

Can a 16 year old even have a checking account though?