Money Tips for High School Students: Is Saving Up Enough for You?

There is not much time left before entering adulthood and the earlier you make right decisions, the more confident you will be in your future. So here are some tips on not just saving up your money, but gaining benefits from it.

Saving in a Bank Account

Savings accounts are a low-risk way to earn money from compound interest. Most of the national and online banks offer rates in a range of 10-15%. They also require very low minimum deposit and have checking accounts and CD’s. The main benefit you’ll see is that you can’t easily make a withdrawal. Having money in a place where it’s not easily accessible can prevent you from impulse purchases.

Investing in Bonds

Investing in bonds is also an option for high school students. A bond is a loan made by an investor to a borrower (typically corporation or government). Note that bonds can have risks as well. That’s why it’s better for you to invest in low-risk companies or government bonds since they are considered some of the safest investments, even though the interest rate on these bonds is lower.

Stock Market Investing

Stock investment is also one of the available investment options. Minors are not able to open their own brokerage accounts, but your parents can set up custodial account or with their permission they can open an account under their name. Of course, your parents have to make the actual trades for you. However, you will be the part of an investment process. But before you start investing, be it bonds or stocks, you must acquire a certain knowledge base, which can be obtained through reading the appropriate literature, studying strategies, taking courses and consulting with experts. Saving up money as a school student in not easy. But developing these skills at an early age will help you build stable financial outlook.

Author: Massalina Aruzhan

NIS Press — это школьная газета НИШ ФМН г. Алматы, Казахстан. Данная статья была опубликована в выпуске газеты 3-недели Января 2021 г.

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