what types of accounts or ways can i put my money in so it wont just be sitting at the same amount

[lb1865]

Hi! Currently I’m 16 years old living in Toronto, ON. I currently have just over $1,400 saved in a “Smart Interest Savings Account” at CIBC, I’m unsure of how much in interest I get but last i checked, it was around $0.38.

I’ve been reading around on how it would be a smart idea to open a HISA, RESP or even a RRSP, but I have no clue where to begin. If it helps, depending on what I’d do, i’d be able to atleast put about $600-$800 per month.

If anymore info is needed, please lmk!

Thanks for all the advice!

 

[jongault]

@lb1865 I would recommend a TFSA trading account with Wealthsimple and get trading in ETFs on the stonkmarkets, but I'm pretty sure you need to be 18 for those things. Do a bit of research on it now so you can hit the ground running when you come of age, you'll be one of those people that make dudes in their 40's jealous when we say we wished we started saving money sooner.

A lot of banks offer "high interest savings accounts" with, like 1% interest or .5%, it's a joke. Those are rookie numbers. CASH.TO pays around 4%. The S&P 500 is about 10 percent.

.38 per month on 1400 is .3%.

 

[persis]

@jongault Check if you can open a WS Cash account under 18, that might at least provide semi-decent interest

 

[notyetasaint]

@lb1865 You should have a look at r/PersonalFinanceCanada with their well organized wiki "Money steps".

• TFSA & RRSP

 

[fhf1]

@lb1865 I enjoy the Canadian bloggers My Own Advisor and TawCan. They both write about their investing in easy to understand terms.

https://www.myownadvisor.ca/start-here/

https://www.tawcan.com/beginner-articles/

Both blogs have start here pages with links to their posts about the basics.

 

[iampax]

@lb1865 Also start putting away $100/month into an RRSP. Let your age and time be your friend.

 

[thedaughterofgod]

@lb1865 Good on you for taking initiative to learn about personal finance early on!

An RRSP and TFSA are two types of tax shelter investment accounts that you can open when you are 18.

My advice is to just keep saving money into your savings account for now and open a TFSA when you turn 18. If you keep saving 600-800/month you will be in a pretty good spot by the time you can start contributing to your TFSA.

Don't worry about an RRSP for now since your income is so low. It's better to contribute to your RRSP when your income is higher to reduce you income tax.

You could possibly look into getting a savings account with a better rate. But at the moment I don't think it will make much of a difference since even at the best current rates you'd only make ~$4/month with $1200 in your account. But maybe look into this more when you turn 18 or get over $10k saved.

 

[mdsnvds]

@thedaughterofgod Honestly man this is solid advice. I will add on a couple ideas.
While you save - learn. Learn about stocks, charts, crypto, high risk investments, starting a company, risk analysis.. whatever interests you from a money making standpoint point.

For example - I use Wealthsimple for stocks, I research a company and if I think it is a profitable business I will invest. I look for Canadian stocks (the app doesn’t have a fee for trading CND stocks) and stocks that pay dividends. Start small, have fun and practice. There are free simulators out there but I found I learned best when it was real money.

Keep this mentality kid, you’re gunna go far.

The more money you have the more opportunities you get with investing. Less fees, higher interest. You can always, for free, meet with advisors at your bank to ask questions and learn as well.