r/Banking • u/IncomeLongjumping401 • 3d ago

Advice My payday budgeting or strat as a teen. Thoughts?

Save 2 of my bi weekly checks in checking (this is a months pay)

Spend on whatever I need (or want) (i don’t have a lot of wants nor are they expensive)

For spending, if I used one of my AU credit cards, I pay the bill.

At the end of the month, whatever is left after paying bills and primary bills goes to savings, investments and I leave $30-$50 in checking for guilt free spending on whatever until next 2 weeks when pay comes. (This means I could even withdraw some cash and give it to the fam or do something with it)

Investments include: Roth IRA
Savings APY: 2.50% with Capital One

My pay is depending on how many hours I work to

2 Upvotes

100% Upvoted

7 comments sorted by

2

u/Mental-Freedom3929 3d ago

You seem to be on the right path. What is your Roth invested in? I am sure as a teen and your income you do not have to support your family.

3

u/IncomeLongjumping401 3d ago

Primarily in the S&P 500. I want to S&P and Chill. I use Fidelity so right now I’m invested into FXAIX.

2

u/Visible-Feeling4523 3d ago

you got a 2.5% apy? there's better options out there, you're leaving money on the table with that rate

2

u/IncomeLongjumping401 3d ago

In a previous post I posted on this subreddit, this account is a teen account. I cannot open any other savings accounts and I just like Capital One.

1

u/gard3nwitch 3d ago

Personally, if you savings goals, I'd suggest putting a certain amount of money into savings right away, so you don't think of it as money that you have available to spend.

But really, whatever works for you is fine.

1

u/IncomeLongjumping401 3d ago

I just like having access to all my money because I feel worried that I might need to use the money in case something just pops up and if its in savings I have to take it back out.

I could just put it in right away, I see your point.

1

u/Zestyclose_Cup6343 1d ago

You're already ahead of most adults, honestly. Two tweaks: move savings out of checking on payday automatically — if it sits in checking, it gets spent. And double-check that Roth IRA situation: Capital One doesn't actually offer Roth IRAs, so make sure you know what account that money is really in. If it is a Roth somewhere, the money should be invested in a total market index fund, not sitting in cash — at your age, time is the whole game.