Money talk... A boy with a bank account
Turning 18 opens a whole new world of possibilities. Finally, I didn’t need to fake my age when signing up for a website… Oh, and I can manage my own finances I guess.
Recently my parents fully transferred me ownership of my custodial back accounts that I’ve had since I was a little kid. Learning about stocks, different account types, banks, APYs, trading, is one of the most confusing things you can throw a fresh “adult” into. Despite the daunting task ahead of myself, I knew just how important it was to learn how to start managing my finances at a young age. So here’s my story so far.
I bank primarily with Charles Schwab and I currently have four accounts. A Roth IRA, an individual brokerage, and an investor checking account. I have a fourth account with Everbank that I recently opened, for my high yield savings (I did this because Everbank has a high APY percent).
Being a mini adult at this point, with my own bank accounts and income, it was time to develop a budgeting strategy. I kept it simple, 15% towards my Roth IRA, 10% towards my individual brokerage, 10% towards my high yield savings and 10% toward the church. Leaving 55% of my income to spend on whatever I want.
If I got paid $500 that would mean $275 to do whatever I want with. “Holy crap, this kid’s gonna blow by that in a week.” I don’t blame you for thinking that way, but the difference between me and the average 18 year old is that I live with my parents and go to community college. YEAH, I HAVE NOTHING TO SPEND MY MONEY ON. I’m honestly grateful for my current lifestyle because it forces me to be financially smart. That 25% that I put into my Roth and brokerage becomes more like 50%+ with how little money I spend. The most I’ll spend my money on now, is the occasional fast food trip with a buddy or a new pre workout I want to try. The biggest threat to my bank account is when I visit my friends at their colleges.
Over a week ago, I visited some friends in Nashville, and oh boy. I probably dropped around $300 that weekend. I got another college visit to see some friends in San Diego for Halloween weekend and I already know I got to start saving NOW.
Overall, I feel like I’m slowly getting the hang of managing my money. Budgeting my income, managing my streams of revenue, learning what stocks/mutual funds I like to invest into, etc. I definitely wouldn’t call myself financially literate yet, but honestly, I’m very proud with where I’m at, especially compared to other 18 year olds.
