Advancement: Opening a Savings Account

Who knows the power of money? I know that I do, and I value it! That's why at the age of 14 (still a freshman in high school), I begged my dad to take me to the local bank to open a savings account. I really wanted to be able to write checks, I thought it was so cool, but wasn't old enough! So, one day after school my dad took me! I felt so important and encouraged, I couldn't wait to tell my friends.

That savings account ended up being to my benefit, as I started my first job that summer as an accounting intern for a very well-known company, worldwide! I planned to get my first car the same day that I passed my road test, and at that point I realized that I needed to save. So for the next 7 weeks of my internship, I made $320 a week! That is a great amount of money for a 14 year old believe me! I couldn't wait until payday, so I could march through the bank and show the tellers how I was spending my summer!

Anywho, enough about my experience as a first time account holder. Let's talk about the importance of a savings account in a realistic, teenage perspective!

Regardless of how much money you make, there is room to save! Even if it's only the change that you collect from your pockets at the end of the day. Now as an accounting major, I like to do calculations! So I'm going to provide you with an example of how much you could save, and what you could do with your savings.

Let's say, at the end of the day after all of your purchases, you accumulate at least $0.85 in change. With 365 days in a year, you can save $310.25! Without thinking, that is a nice amount of money to have as a teen, starting the year off on a good foot! Now if you could just manage to not touch it starting at 13 years old, by the time you're 18 you'll have $1,551.25 saved up!

Now, I mention a savings account, and not a piggy bank, because a savings account is more secure. There is less chance of you using the money for reckless expenses, like ice cream, CDs and friendship bracelets!! There is someone monitoring your savings, and with a parent involved it's even easier! The simplest thing to do is, take a jar or the piggy bank you've had since a child, collect your change every night. Hide the money somewhere where you rarely look, like under your bed... unless your room is a mess and you frequently check under your bed for shoes and whatnot! Then you may need to hide it under your parents' bed! At the end of each month, take your jar to the bank (I know a lot of them now have 'Coin Star' like machines that members can use for free. If not, make use of the coin wrappers that they give you for free to save the bank teller, and yourself, some time).

Some banks even offer (good) interest on savings accounts. Let's say (yes! another example) your bank offers 4% monthly interest for savings balances above $200. Once you reach $200, your account will look like this:

Month 1: $200 x 0.04 = $8, which means your account balance is now $208!
Month 2: $208 x 0.04 = $8.32, which means your account balance is now $216.32

This may be a little unrealistic for some institutions. The interest rate may actually be .4%, you never know!

In essence, the just of this post is to encourage you to save. Whatever the reason may be... you may want a car, pay for your first year of college, buy your parents a nice anniversary gift, or your boyfriend a hat! If you put your mind to it, YOU CAN DO IT!