Thanks in advance!
It seems a bit early, but if you's like to become phenomenally well off, you need to begin as early as you can, because of the magic of compounding wealth. You might even be able to retire early.
I am an old codger today, but back when I was young (in the 1970s) I put $100 away into a mutual fund each month. After 5 years ($6000 invested), I stopped. That money I put in has grown to more than $700,000, and the interest and capital gains distributions now pay for much of my retirement funding.
Once you have earned income you can have a ROTH IRA. When you are at the $10 a month level just save in a bank account until you have $1,000. At 16 you have major life goals ahead of you like a car, college, house down payment and retirement. You can't wait for all to be funded before you start with retirement or you might never start so starting now is great. You can put up to 5,500 in a ROTH IRA every year and can't fund years you miss so when you get $1,000 saved start one and try to put 10%-15% of your earned income in every year.
NO ! Ignore your teacher. Use your current money for current expenses. Everything you do with your money affects your financial future, so it is not necessary to bury your money in a tin can in the back yard for the next 40 years.
When you have a full time job in your 20's, and have a handle on your expenses, then think about funding a retirement plan.
Retirement accounts if properly invested in growth markets will accumulate slowly over a long term so that you have income when you stop working after you reach 59 1/2+. If you withdraw sooner than that you incur penalties and lose some of the benefit. Starting young gives the account more time to grow and the benefits of compounding the interest is in your favor.
This is wise but I think you are too young to open an IRA so just save some of your money for now. When you have enough saved, buy shares in a a low cost mutual fund from a discount outfit like Vanguard or Fidelity.
Why start a retirement fund? When you get to uni you will be broke, start a college fund! Paying for rent, food, electricity, gas, etc... on a part time minimum wage job is the typical student life. Save for that.
Whether it ends up for retirement or not, saving is always a good idea. In your life you'll have lots of things you need to pay for and saving as early as possible is a good idea so if you suddenly need to fork over a bunch of money, it won't hurt as much.
Its a little too early. Focus on liquid savings for you college, moving out expenses etc. start a Roth immediately after college, hopefully around age 22.
I love your attitude but, you need taxable income to start a formal retirement account. Once that happens, the earlier, the better.
definitely a good idea to start early, especially since you make a good amount of money, you may not have that advantage at one point and won't have to worry about it as much.
