What to Do with 500 Dollars ($500) Cash as a Teenager?

The smart ways on what to do with 500 dollars $500 cash as a teenager. Spend five hundred dollars wisely by creating another money dollar machines.

I am just 15, my mom and my dad gave me $500 as a Christmas gift and a few weeks allowance. Can you suggest some ideas what to do with my five hundred dollars? I hope you will reply to my queries asap, thanks.

I choose some of queries from my readers to answers every week or sometimes everyday. Due to many inquiries, I only answer those questions related to personal finance and investing. When there are no topics related to my interest, I choose some queries to answer and answer it by writing a short and simple article in this blog – Return On Investmet | www.InvestmentTotal.com

What to Do with 500 Dollars ($500) Cash as a Teenager?

Answer & Response: The smart things to do with your $500 is to keep it. First, keep it! You can keep it in your wallet, or in your closet.

Second, spend it wisely! Since your parents gave it to you as your “few weeks” school allowance, use it where it is intended. If it is for allowance, use it as your allowance.

Third, save some portions of it. $500 just for few weeks school allowance is too big. All you have to do is to tell your parents to open a bank account for you. Since you are at a minor age, the bank will require your parents to open an “in-trust-for” bank account for you.

Whenever your parents is giving you an allowance, deposit money in your bank account. Save money and when you’re at 18 years old. Learn investing, because saving money in the bank can’t help you to make your money grow. Investing is.

Save and Invest $500

The good thing is, if you will invest as early as you can, you will retire young and rich. Your first option might be to use that investment fund for your college education. The advantage of investing while you are still young is that you already adapt the investing habit, therefore, when you’re at 20’s, 30’s or 40’s, you are already trained to invest for your future. To get motivated, see the future value of $500 one time investment here as the financial quiz of the week.

I suggest, read the book of Suze Orman’s personal finance book entitled “The Money Book for the Young, Fabulous and Broke”. I hope this answer makes sense to you! Happy saving and investing for your future! Thank you for reading.

Update: What to Do with 500 Dollars ($500) Cash as a Teenager? Spend the money not a gadgets but on books. Spend that $500 cash to learn new skills to make another $500 and soon you will never rely to your parents just to have extra 500 dollars.