Money Management

You can buy stocks if you’re under 18, but not on your own. Read on to learn more. 

If you’re a teenager, you may be eager to spend your money on things like hanging out with friends, seeing your favorite bands, and loading up on the latest electronics. But a better bet is to use your money to set yourself up for a solid future.

At a minimum, you should put a portion of your money into a savings account so you have an emergency fund for unplanned bills that arise as you get older. Or, you might need that emergency fund for an unexpected expense that pops up sooner — such as if you lose your cellphone and have to pay for a replacement one on your own.

But once you’ve socked some of your cash away in a savings account, it pays to consider investing your money. The upside of doing so when you’re young is getting a long investment window to grow wealth.

When it comes to investing your cash, you have options. If you have earned income, you could contribute to a Roth IRA, which will allow your money to grow tax free. Or, you could put your money into a regular brokerage account and invest there. You won’t get any tax benefits, but you might get more flexibility than you’d get with a Roth IRA.

But if you’re under 18, you can’t necessarily go out and open one of these accounts yourself. Rather, you’ll generally need an adult to serve as a custodian on your account.

When it comes to investing, there’s limited autonomy for minors

You may be motivated to invest your money at a young age because of the financial upside. But if you’re under 18, you’ll usually need an adult to open a Roth IRA or brokerage account you’re buying stocks in.

That adult will serve as a custodian on your account, so they’ll technically maintain control over investment decisions. They’ll also receive copies of your account statements. However, one thing your custodian does not get to control is the money in your account. That money is yours.

It pays to buy stocks at a young age

You should know that investing in stocks carries risk. You could lose money by putting it into the stock market, especially if you buy stocks at random rather than research different companies individually.

But if you’re willing to put in that effort and invest your money rather than spend it, the payoff could be huge. Over the past 50 years, the stock market has delivered an average annual 10% return, as measured by the S&P 500 index.

So, let’s say you’re 15 years old and you decide to put $2,000 into a stock portfolio that generates an average annual return of 10% through your 70th birthday. At that point, you’ll be sitting on a balance of about $378,000. If that sounds astounding, well, it sort of is. But it highlights the importance and benefits of investing from a young age.

Of course, not many teenagers have a couple thousand dollars to buy stocks with. But if you happen to have that money on hand, then it definitely pays to put it to work.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Love Amazon? Read on for a list of products that are nicely discounted right now. 

A lot of people are trying to save money these days. If you’re one of them, you may be banning all non-essential purchases until your savings account starts to look more robust.

But if you’re doing well enough financially, and you have some breathing room with money, then now’s a pretty good time to do some shopping on Amazon. Although Amazon commonly offers competitive prices on the items it sells, right now, it has a host of products available at a discount. So if any of these items check off a particular need or want of yours, now’s the time to scoop them up.

1. Fitbit Luxe Fitness and Wellness Tracker

When the weather warms up, people tend to want to get outdoors. If you’re looking to start tracking your steps, this Fitbit model should do the trick. And right now, it’s being offered for just $89.95 on Amazon, which is 31% off its normal price of $129.95. You even get your choice of band color — black, white, or pink.

2. Lasko Oscillating Tower Fan

The cost of running your air conditioning system at full blast this summer might end up being prohibitive. A more cost-effective alternative could be to invest in a fan that helps cool your space. This Lasko floor fan comes with a remote so you can control the flow of air as you see fit. It also includes a built-in timer so your fan will automatically shut off after a period of time. Right now, it’s marked down from $69.99 to $59.99.

3. VOTEPRETTY V-Neck Tie-Front Sundresses

The season of lighter clothing has pretty much arrived. If you’re looking for a versatile dress to wear to a party, the beach, or dinner in town, it pays to check out this selection of VOTEPRETTY patterns and colors. You’ll find a range of options for as low as $26.33.

4. Ninja SS151 TWISTi Blender DUO

Warm weather is apt to have your kids begging for smoothies, milkshakes, and other frozen concoctions. Right now, this Ninja model is marked down from $139.99 to $99.95. It has a 34-ounce capacity, so you can make your creations in batches and freeze some for later.

5. DeerRun Walking Pad, 2 in 1 Under Desk Treadmill

Don’t have room for a full-sized treadmill at home? Consider this scaled-down model instead. As the name implies, it can fit under your stand-up desk so you can get your exercise on while attending mandatory meetings. Right now, it’s available for an astounding 50% off for a final price of $199.99. Do keep in mind, though, that this model has a maximum speed of 3.8 miles per hour. If you’re looking for a treadmill to run on, this probably isn’t it.

If you’re already trying to pay down some credit cards, then you probably don’t want to add to your balances by purchasing items that aren’t essential. And chances are, most of these items aren’t absolute necessities (though you can argue that a fan is a must for the summer months). But if money isn’t tight for you, then you might as well take advantage of your Prime membership and add some of these items to your shopping cart.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Selling your home? Read on for some pitfalls you may want to steer clear of. 

A lot of people are opting not to sell a home these days because mortgage rates are higher than they’ve been in years. And if you have a low interest rate on your existing mortgage loan, you may be hesitant to sign a new one.

But you may be looking to sell your home regardless of mortgage rates for different reasons — you want to move for a job, downsize, or upsize. If you’re selling a home for the first time, it’s important to go about the process strategically. But as a first-time seller, you might make some mistakes along the way. Here are some of the regrets recent first-time sellers had, according to a Zillow survey.

1. Pricing incorrectly

A good 39% of recent first-time home sellers feel they didn’t set a high enough price for their homes. Of course, you don’t want to go overboard and ask for an unreasonable amount of money. We’re not in the same housing market we were in 2021, when mortgage rates were so unbelievably low that buyers were willing to significantly overpay for homes. But buyer demand is still fairly strong, so you don’t want to sell yourself short, either.

In fact, one thing you should know is that real estate inventory is low across the board right now. And that lack of competition gives you more leeway to command a higher price for your home, as long as it’s a reasonable one.

2. Not paying enough attention to curb appeal

Your home’s exterior is the first thing prospective buyers will see when they come to check it out. So ignoring your home’s curb appeal is a mistake you might regret.

Take the time to trim your shrubs, power-wash your siding, and repaint a fence that clearly looks like it’s seen better days. A little effort could spell the difference between interested buyers and buyers who walk away without even coming inside.

3. Listing at the wrong time

A good 25% of recent first-time home sellers wish they’d listed their homes at a different time. Zillow research shows that the second half of April tends to be an optimal time to list a home, but that’s also when there’s likely to be more competition.

One thing it pays to do is think about your home’s best features and when it’s easiest to show them off. If you invested a lot of money in a great backyard with a patio and pool, you may want to list your home in May or June so that prospective buyers can check out that space and imagine themselves enjoying it during the summer.

4. Not making enough repairs

A couple of years ago, sellers could easily get away with not making repairs for listing their homes. That’s because buyers were so eager to lock in those record-low mortgage rates.

But these days, you’ll need to make more of an effort when selling a home. So if there are things that are obviously wrong with your house, like a leaky faucet or appliance that doesn’t work, you should really try to address those issues before prospective buyers come to scope out your property.

The last thing you want to do is have regrets as a first-time home seller. A good way to avoid these pitfalls is to team up with a seasoned real estate agent. Someone with solid experience should be able to help you price your home appropriately, time your listing just right, and take steps to make your home as broadly appealing as possible.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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Not a fan of the 401(k) plan that’s available to you? Read on for other ways to save for retirement. 

Many companies offer their employees a chance to save for retirement by sponsoring a 401(k) plan. And a lot of the companies that offer a 401(k) also match worker contributions up to a certain amount.

Of course, not everyone has a 401(k), and an estimated 74% of small businesses don’t offer one. But just because you have access to a 401(k) doesn’t mean it’s a great plan to be participating in.

Perhaps your 401(k) offers limited investment choices. Or it could be that you’re tired of paying hefty administrative fees that are eating away at your returns. If you don’t like your company’s 401(k) plan, you should know that you’re definitely not stuck with it. Here are a couple of other options you can look at instead.

Save in an IRA

Anyone with earned income can contribute money to an IRA. If you go this route, you’ll generally benefit in the form of having more ways to invest your money. That’s because IRAs allow you to invest in individual stocks, whereas 401(k) plans do not.

If you opt for a traditional IRA, you’ll get a tax break on your contributions, but your withdrawals will be taxable in retirement. If you decide to save for your retirement in a Roth IRA, you won’t get a tax break on the money you put in, but your investment gains in that account will be yours to enjoy tax-free, and your withdrawals will be tax-free as well.

Whether you opt for a traditional IRA or a Roth, this year, your contributions will be limited to $6,500 if you’re under the age of 50 or $7,500 if you’re 50 or older. Employer-sponsored 401(k)s have much higher contribution limits — $22,500 and $30,000, respectively. But if you’re only able to sock away a few thousand dollars a year for retirement, then that shouldn’t really matter.

Save in a taxable brokerage account

When you save for retirement in a taxable brokerage account, you don’t get tax benefits, but you do get more freedom.

Both IRAs and 401(k)s penalize you for taking withdrawals prior to age 59 1/2. That won’t happen in a taxable brokerage account, so if retiring early is something you’re interested in doing, then you may want to keep at least some of your savings in one of these accounts.

Also, with a taxable brokerage account, there’s no limit as to how much money you can contribute each year. If you get a $10,000 bonus and decide all of it should go into your retirement account, you’ll have that option.

You’re not stuck with a bad 401(k)

If you’re not a fan of your employer’s 401(k) plan, you should still contribute enough money to it to claim your company match in full so as not to turn down free money. But beyond that, you can look at an IRA or a taxable brokerage account as a home for your long-term savings. And if your company’s 401(k) plan offers no match at all, then you should absolutely feel comfortable ditching it and putting your money elsewhere.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More