Save for More Than New Shoes
You’ve already decided that you’re not going to repeat last summer’s spending fiasco. Remember that sick feeling you had when September rolled around and you had nothing to show for your hard work…except a new pair of shoes and a few apps. So teens- save for more: what’s a good way to start growing the cash you earn?
For starters, it’s smart to open a checking and savings account at Mid Oregon Credit Union. If you are under 18 years old, you would need an adult joint account owner, but it would still be your account.
Save for Now..and Later!
Next, create a savings plan. For example, set aside 50% of your earning for a long-term investment like college or a car. Set aside 30% to 40% for a big-ticket item you’ve had your eye on, like a tablet or a video game console, and finally keep 10% to 20% for immediate expenses like movies and eating out.
We also recommend that you start with the practice of giving from your income. The amount or percent is up to you, but contributing financially to worthwhile causes you support is a great way to “practice what you preach”. People helping people is a cornerstone of the credit union movement, and you can be part of that as well.
The Power of Compound Interest
Another long-term savings option is to open a Roth IRA (individual retirement account). “What?” you say, “I’m too young to think about retirement!” But hold up. By investing while you’re young and letting the earnings compound (earning interest on the interest), you’ll be amazed at how it grows.
Mid Oregon Credit Union has a convenient “Savings Calculator” on our website, which will help you to determine the future value of a periodic investment in your savings or deposit account. Click here to access the calculator.
For example, depositing $100 each month in a share (savings) account earning 5% dividends (the credit union term for ‘interest’), will have a future value of over $150,000 if continued for a period of 40 years!
With goals and planning, you’ll have something big to show for your efforts this fall—and far into the future.
We can help you with all of your financial goals. Stop by one of our seven Central Oregon branches, or Mid Oregon today at (541) 382-1795.