Teenager inherited 15k

[Anonymous]

What would you do with an inheritance of 15k for a young teenager? Spend and donate a little now? How to invest/save? Possibly for college spending money or a car when he's ready?

[Anonymous]

How long until teenager is old enough for a car? I think I’d let them do a splurge now (my kid would pick an iPad or MacBook) and then save the rest for a car or college. If you were otherwise going to pay for those things for your teen then I’d set that aside and gift the money you set aside for them when they’re a young adult and will actually have good use for it.

[Anonymous]

I'd put it all away for a car.

[Anonymous]

If you have any chance of getting financial aid, DO not just leave it in DCs name. It will be considered at a higher rate than your money for funding.

My kids had about that much $ given to them as gifts over the years (mostly when born). We turned it over to them at college graduation time and said this is your emergency fund! A huge helped to a 22 year old with their first job.

[Anonymous]

Buy AAPL.

Thank me in 20 years.

[Anonymous]

Save for a car.

[Anonymous]

Anonymous wrote:Buy AAPL.

Thank me in 20 years.

Tesla and thank me in 4 years.

[Anonymous]

College fund. Only a car if they needed it but college first.

[Anonymous]

Anonymous wrote:What would you do with an inheritance of 15k for a young teenager? Spend and donate a little now? How to invest/save? Possibly for college spending money or a car when he's ready?

UTMA and invest it after he/she buys something for himself.

[Anonymous]

Donate? No. Do taxes need to be paid on it?

I would probably encourage them to invest it, unless they needed a car.

[Anonymous]

I wouldn’t donate. If you’re the sort of family that doesn’t get your kids cars, I’d let him use some for a cheap daily drive type car and save the rest of he wants a car. I don’t know about the effect on college aid - were a full ride family but I’d consider what people have said about moving the money out of his name. And I’d recommend he save the rest after a car or whatever pressing desire he has. That first and last month rent plus security deposit can be a financial hit when you’re young. And it’s really nice to be able to travel when you’re young also. He’ll really appreciate your guidance down the road.

[Anonymous]

I think encouraging the teen to research a good organization and donating $100-250 is a good thing in numerous ways.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Buy AAPL.

Thank me in 20 years.

Tesla and thank me in 4 years.

PP you replied to. Seriously? Please don't do that. I have both, but I'm under no illusions about Tesla (separately from what you may think of the owner). Without going into industry-specific details here, let's just say that it's not sufficiently innovative to stay ahead of its emerging EV competitors for long.

[Anonymous]

I would not require my child put it toward college unless they would otherwise be taking out loans.

I would also not require to donate but certainly not discourage if they wanted to do so.

I think going towards their first car or a bucket list trip would be memorable. This isn't earned money, its a gift.

[Anonymous]

Anonymous wrote:I think encouraging the teen to research a good organization and donating $100-250 is a good thing in numerous ways.

Yes, that's what I mean when I mention donate - just to get into the habit of knowing what's important to you, how to research, doing your part, and recognizing your privilege. Not huge sums.