How can a 20 year old start saving money for their future?

Hello all





I am 20 years old and am going into education. I plan on never being rich, but would like to have enough money to help send my kids off to college, or for something else if I end up not having children.





Right now I make very little money and am a full time student. However, I am good at saving money and spending wisely. I have about 1000 to invest into some sort of savings that earns interest. What is the best way to do this?|||The first question is what do you pan on doing with the money? Is this a nest egg, something you can invest for a long time? Then look up fidelity or vanguard and buy a mutual fund stock. Even if it is five years you should do this.


Actually I laughed when I read about savings bonds but they are somewhat attractive for short terms, like up to five years but even then I'd advise looking to a mutual fund.


How can I state this simply? Of course you want to say if I have 1000 now, I want 1000 + more five years from now. There is a chance that you'll have less than 1000 if you get a mutual fund. But there is also a chance you'll be hit by a bus tomorrow. Yes, if you get a CD or savings bond you will have the 1000 + interest but generally you will have a greater return with a mutual fund.


But forget the current advice. The bigger picture is savings. At your age no matter what you make you have to save a certain amount for retirement. Take your net income and save at least ten percent. That may sound impossible but it can be done. You have to pretend that you only make 90% of your current income. Pretend the other 10% does not exist and save it. As your income goes up, save 10%. Heck, save 20% if you can; 10 for retirement and 10 for shorter savings, like down payments on a house or a car.|||Good for u honestly. That's great,I'm a finance major currently and I'd say the best way is through savings bonds.