It’s likely that a teenager will already have his or her own savings account. As they always say, it’s better to start them early. Teaching them the habit of saving money will do a lot of good for them as they grow older.
Take advantage of your time
Time is on your side when you’re just starting to earn your own money, and you can take advantage of it by setting up a high interest savings account as early as possible.
But when you get your first job, that’s a different story. With earnings coming in regularly, spending may be more frequent than saving. Bear in mind that as you grow older, your priorities and needs change. You may need to buy a car or your own house or go on a holiday later on. All of these require money, and if you fail to save on a regular basis, you may not be able to achieve your goals.
Higher Returns through Compound Interest
Setting up a high interest savings account is a popular product that people use to save and grow their money. The risk is generally lower, plus the returns are generally higher through compound interest. This refers to the interest on the interest you’ve already earned. Unlike a simple interest wherein the interest is paid at the maturity date, compound interest is paid on your initial principal and the interest which is accumulated on the money you’ve invested.
Use Time to Your Advantage
Once you land your first job and have money coming in, it’s the perfect time to start saving. In general, the earlier you start saving money, the more you’ll earn from the compounding effect. The interest is calculated and added to your money every month. Since you’re also earning interest on the interest, your money will grow. Time is on your side when you’re just starting to earn your own money, and you can take advantage of it by setting up a savings account as early as possible.
Compare Savings Accounts
You’ll find that there are a lot of options to choose from. To know the best savings account in Australia for your needs, it is helpful to compare savings accounts offered by several banks. Shop around to see features such as competitive interest rates, flexibility, ease of banking, and customer service. You can likewise ask family and friends who already have high interest savings accounts. They can give you feedback about their experiences with their own bank accounts.
You may get confused with all of these information, especially since you’re just starting with your first job, but don’t worry. Eventually, you will understand what a high interest savings account can do for you and your financial goals.
Do you have other tips on high interest savings accounts in Australia? Share your ideas in the comments section.