Friday, September 20, 2013
September 20 - Online Discussion Question 2
Shannon is a senior in high school and works part time at a local restaurant. She makes good tips and always has spending money. Her parents will be paying for her college and her car is already paid for. She knows you are taking a personal finance class and asks you what she could be doing better with her money. What do you tell her?
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Instead of always spending it, she needs to put $500 in a money-market account for her emergency fund. Once she has that, then she should start investing it (80%), but could also tithe (10%) and spend (10%) some again.
ReplyDeleteShe be tithing and saving. She needs to tithe 10%, make a money market account, and put her earnings there. She, of course, will also have a legitimate amount of money to spend,
ReplyDeletestart an emergency fund of $500-$1000 and put that in a money market account, once that is established then you can start saving most of your paycheck and tithe 10% and then whatever is left then you can spend that on what ever you want to.
ReplyDeleteTravis
Put $500 in an emergency fund. Save the rest.
ReplyDeleteAutumn
To save a and have an emergency fund :)
ReplyDeleteTo spend less, and save more, and set aside an emergency fund because her parents aren't always going to be there to support her and its good to be prepared for that.
ReplyDeleteAdam
ReplyDeleteI would say that you should create a emergency fund.
She should start an emergency fund in a money marketing account. Then she should tithe 10%, spend 10%, and put 80% in a savings account.
ReplyDeleteYou need to get an emergency fund of about $500
ReplyDeleteeyezik
I'd tell Shannon that she should make saving a priority and set some goals: first, to have an emergency fund of three to six months of expenses in a money-market account. If she wasn't sure how much that was, I'd tell her that 10,000 dolllars would be an excellent sum. Her second goal would be to start saving a set amount of money for her retirement. In order to meet these goals, Shannon will have to give up spending the extra money she has, and possibly go on a budget.
ReplyDeleteEstablish an emergency fund with $1,000 dollars, then save the amount equivalent to your expenses for six months. After you've accomplished that, you should start to save 80% of your money, preferably in a money market account, and then you should be tithing 10% and you'll still be able to keep 10% for spending.
ReplyDeleteThat she should also have a emergency (about $500 or more) fund for when the unexpected happens!!
ReplyDeleteshe must create a emergency fund and a savings account. she must also not spend a ton off money and try to manage her money well.
ReplyDelete-Jacob