Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

2 Bumps

What would you do...Banking question

If you were 17 1/2 and had $5000 saved up. Would you put all the money into a year CD (wouldn't be able to touch with out penalty until 18 1/2) or would you put all but several hundred keep out?

Answer Question
 
Anonymous

Asked by Anonymous at 7:39 PM on Sep. 19, 2010 in Money & Work

Answers (6)
  • I would put most in a CD, and put a little in a bank savings account just in case I needed it.
    MizLee

    Answer by MizLee at 7:41 PM on Sep. 19, 2010

  • Or, open a Roth IRA and start now with a retirement account.
    tasches

    Answer by tasches at 7:59 PM on Sep. 19, 2010

  • Oh I like the idea of a Roth IRA- but you can only put in $5000 if you made $5000 that year.

    Really though I think it depends. If you didn't have a car maybe use some of that money to buy one. And if you needed to pay for your own college education I might use the rest for that.

    But if a car and college are taken care of I would definitely go for a Roth!
    Erica_Smerica

    Answer by Erica_Smerica at 11:55 PM on Sep. 19, 2010

  • you can do CDs with different value dates. You can start with $1000/6 mo, $1000/1 yr, etc. then if you don't need the money you can just reinvest it - and if you do, it's only 6 months away....
    tortkey

    Answer by tortkey at 7:44 AM on Sep. 20, 2010

  • Back when we first started investing we had our money in several CD's so that every 3 months the money came available just in case we needed it. Starting out we had a 3 month CD and a 6 month CD. In 3 months the first one was available, we didn't need the money so we then put it in a 6 month CD. After that, every 3 months a CD was available to us. We had the interest that they accumulated put into a money market account, when there was enough money in the money market account we could open up a new CD.
    slw123

    Answer by slw123 at 8:21 AM on Sep. 20, 2010

  • check you interest around in your area. where i am there isnt anything growing at all so theres no point.
    swaney06

    Answer by swaney06 at 2:02 PM on Sep. 20, 2010

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.
close Join now to connect to
other members!
Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN