SMART MONEY: Teen starts a savings plan with new job
DEAR BRUCE: My 18-year-old son recently started his first job. He keeps asking me where he should put his money to start saving for his future. He said he can afford to put $50 a week in a savings account. How much do you think he should accumulate in his savings account before he moves on to a better-earning investment? — B.C.
DEAR B.C.: You son is starting off on the right foot. At $50 a week, he can certainly save $500 in 10 weeks. At that point, he should consider investing in the stock market.
He can’t buy large quantities, but he could buy an initial stake of $500 and add to it every month with $200 in savings.
If he establishes the appropriate habits now, he will be very successful in life. I think he must have you to thank for his good judgment.
DEAR BRUCE: Does it really make a difference if you earn a high school diploma versus getting a GED? — Harold
DEAR HAROLD: They are both valuable tools, but given the choice between the diploma and the GED, I would go for the diploma every time.
A General Educational Development certificate is for someone who is not able to complete high school for any number of reasons. If you can take the four years, by all means do so.