When you receive your 18 money, it is a good idea to have a safe place for it… in a bank or a credit union. Before you get your big check, you should decide on how much you want to keep for spending and how much to save, and then research the different options for savings accounts.
You want to start saving before you get your minor’s trust
If you have a job or an allowance, you can open a savings account before you receive your 18 money. There are basic savings accounts that allow a parent to open a joint account with you, which is especially convenient if you are not old enough.
If you don’t want to be able to touch your money for a fixed period of time:
Some people find it easier to save money and accrue interest when their money is in an account that can’t be touched. (What’s interest? Click here) You can open a savings account called a Certificate of Deposit (CD). CD accounts usually offer a higher interest rate than other types of savings accounts. In order to avoid paying penalty fees, you must leave all the money in your account for a specific period of time.
If you want easy access to your savings
Online banking is a good option if you’d like easy access to your money. Most banks give you the option of having your checking and savings accounts connected and allow you to manage both accounts online. This allows you to keep track of your money and easily transfer funds between your accounts.
Once you have decided which form of savings is right for you, the next step is to make a plan for your money. Without a plan and a budget, you may find yourself asking “Where did my 18 money go?” Saving now will pay off later. Check out our budget sheet on the My Green site to help you get started.