High school might be all about the hot cheerleaders, but that doesn’t mean you can’t get a head start on your finances. High school is one of the best times to get your finances in order because it’s probably never going to be easier.
1. Open a checking and savings account if you don’t have one yet. For savings, I’m a fan of ING Direct (leave a comment and I’ll get you $25 just when you open the account!). But mainly, just choose a bank that doesn’t charge a ton of fees. If you can’t drive yet, it’ll probably be easier to just use the same bank your parents do.
2. Start a business. I’m not saying you have to create the next Google, but it will never be easier to create a business than it is in high school. You have no mortgage or electricity bill to cover and hopefully no kids to provide for. This means you don’t have to make a typical “adult” salary. Give piano lessons, fix people’s computers, or create a new product no one has thought of yet.
3. Open a Roth IRA. If you make money, you can open Roth IRA and get a huge head start on retirement. I know retirement isn’t for a long time, but you’ll have much more money the sooner you start. Check out my post “Start Saving for Retirement with a Roth IRA” for more information.
4. Get good grades. This will help out you qualify for more college scholarships, if that’s the route you plan to take. Also, you’re more likely to be accepted to the college in the first place if your grades are high. Mainly, I would shoot for a final GPA of around 3.0 (a B average). That seems to be the minimum most scholarships want.
5. Save money. Assuming your expenses (car, insurance, gasoline, fun stuff) allow for it (if they don’t, stop spending so much!), save as much money as you can. If your parents are paying for basically everything, then you should have no problem saving 20%-50% of your income.
6. Get as much college credit as possible. Take AP courses if you can (assuming you can handle the extra work!), figure out if you can take general education classes at your community college, or see if you can do some sort of distance learning by taking online classes. I have a classmate who’s taken enough community college courses that he’ll have an Associate’s degree by graduation. Our high school covered the entire cost. Check this out for more information on AP courses and post secondary options.
6. Spend money carefully. Figure out if you want energy drinks every day (3 bucks a can adds up quick!) or an unforgettable senior road trip. Think experiences, not stuff.
7. Get a part time job. I’ve hated one of my part time jobs and loved the other, so it’s a toss up as to whether you’re going to enjoy this. But if you aren’t making money through other means, then start applying.
8. Try new things. Interested in singing? Check out drama club. Like running? Join the track team for a season. Take an elective class you normally wouldn’t. All of these things can help you find activities and hobbies you really enjoy. Plus, you’ll probably meet some cool new people. This will help you figure out what you might want to do with the rest of your life.
By the way, my school doesn’t have very many attractive cheerleaders. I’m understandably disappointed.
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Regarding the Roth IRA – great idea for high schoolers, but remember you can only contribute as much as you earned on a W-2 form, so if you only made $1000, even though the maximum contribution is $5000, you are limited to a max of $1000. Also, you have to file your taxes (which is a good habit to start anyway).