This section introduces you to the Savings category. Most of us would rather spend than save. But sometimes we need to save in order to afford some of the bigger things we might want to buy or do in the future. You also need to save first before thinking of investing.
One of your first steps to help you increase your savings is to open up an account in a bank. Before you do this you need to find out about the different kinds of banks and how to select one, Selecting A Bank. Once you have made your choice, you need to decide what kind of account or accounts to open. This could be a checking account: Types Of Checking Accounts , or a savings account: Types Of Savings Accounts. With a checking account you will need to learn how to use it so we provide a Checking Account Basics section. There is also an account called Money Market Deposit Account (MMDA) Also Called Money Market Account .
One of the benefits of many types of bank accounts is interest. Interest is money a person or establishment receives for lending money. If you put money into a bank, and leave it there, you will most likely earn interest on that money. The bank makes money by lending out (loans) your money and that of other depositors to other people and businesses, but at a much higher interest rate then you receive. There are different types of interest, so we encourage you to learn about it in our section on Simple & Compound Interest & The Rule Of 72 .
Another benefit of a bank account can be the use of ATM & Debit Cards.
Finally this section will show you a few types of investments you can place your money in for long range savings: Certificate Of Deposit (CD), Individual Retirement Account (IRA) and U.S. Treasury Offerings. Even though this is a website for teens, the earlier you start putting money away for your retirement, the more you will have to enjoy it.
Many of the sections under Savings you might not need immediately. In some cases you will have to earn sufficient amount of money before you can take advantage of many of the services mentioned in this section. But remember Teens Guide to Money is a reference tool for you to use when you need it. For those like myself, who are interested in money, can learn the basics now, then when the opportunity arises you are more likely to take advantage of it, or at least know your options.