I'm 16. Should I be able take care of my own finances?

[johnjohn320]

(Sorry to start so many threads, the questions keep popping into my head tonight!)

As the title of the thread indicates, I'm a junior in high school. A recent event at a commercial airport has sort of got my mind going on this matter: I had an E-Ticket for American Airlines to board my flight and return home. At O'hare airport, I showed them the form, told them my name and where I was going, showed them my driver's liscence and all was well. At San Jose airport, however, driver's liscences were, for whatever reason, not valid/ample identification. The woman asked me to present her with a credit card with my name on it. I informed her I didn't have a credit card, and she looked at me like I was crazy.

In sort of an odd, indirect way, this got me thinking about all the confusing sh!t that occupies adult daily life-taxes, mortgage payments, bills, checking accounts, etc. To be honest, while I have the basic concept of all these, I doubt my "expertise", or lack there of in these areas, would be enough for me to manage all of them myself. My parents take care of all my bank accounts. And when my taxes come on those accounts , while the money is mine that goes Uncle Sam, they take care of all the logistics. Dealing with the bank seems painfully confusing on the times when I've ventured in with a parent or sibling. Just making a withdrawl from my own account seemed to arouse all sorts of peculiar questions from the clerk.

My point (indeed, there is one!): At age 16, did you have a firm grasp on all this jargon? If not, when, and how, did you learn about all of it? It's one aspect of the "real world" that, as ashamed as I am to admit it, still confuses the heck out of me.

Thanks! And happy new year.

EDIT: Perhaps I should rephrase this. It's not that I've been taught and that I don't understand it. It's that I haven't been taught, and I'm not really sure how to go about learning.

 

[Pepsi90919]

mm.. yep.

 

[Zim Hosein]

Not if you have to ask us IMHO johnjohn320.

 

[Nocturnal]

As far as bank accounts go, it's simple as 123. I'm sure if you have a savings and or checkings you have some type of book that you keep your deposit records in. As far as a checking account goes, you have your own checks, carry them around or leave them at home. It's really easy to remember your checking account number. I don't see how you couldn't. If you can't, then you can always write it down on a piece of paper that you can carry around with you.

It isn't hard at all at age 16. I had a savings account at the age of 15 and took care of it and could make withdrawals and deposits.

 

[RossMAN]

Originally posted by: johnjohn320
My point (indeed, there is one!): At age 16, did you have a firm grasp on all this jargon? If not, when, and how, did you learn about all of it? It's one aspect of the "real world" that, as ashamed as I am to admit it, still confuses the heck out of me.

Yes but I started working at the age of 14 which probably helped matters.

 

[Soybomb]

I would suggest you start learning now as you should already know these things. A large majority of young adults (well adults alike too) don't know how to do very basic things like file a tax return. Its not hard but might as well learn now.

 

[johnjohn320]

Yeah, I understand that it's not hard at all, after all, everyone does it. Nocturnal, you basically told me what I already know, if you see what I mean. I understand the concept, I guess I've just never really done it myself.

 

[NuclearFusi0n]

it's a wonder why public schools dont teach basic things like this

 

[Viper GTS]

Originally posted by: johnjohn320
Yeah, I understand that it's not hard at all, after all, everyone does it. Nocturnal, you basically told me what I already know, if you see what I mean. I understand the concept, I guess I've just never really done it myself.

Start now, I've had bank accounts in my name for the last decade & have managed them myself.

It's really not that hard, EFT is a wonderful thing.



Viper GTS

 

[brtspears2]

Whoa...wait... Credit card required at San Jose airport? Strange, I never got asked there for a credit card. Perhaps its a new FAA requirement?

But start small, learn to balance your checkbook, make a budget.

 

[PsychoAndy]

What the hell? A credit card is NOT valid ID, seeing as they have no pictures. I have 2 freaking AMEX cards and no drivers license, if I could use those as ID, my life would be so much easier. That has gotta be the stupidest thing i've ever heard in my life. But, then again, they are CSR's, you don't exactly need a college education for that =\

Anyways, you don't have to be able to take care of your own finances at 16. Hell, in most places, your rents are bound by law to support you until 18 (don't quote me on this). But at 16, you start learning how to do these things, just because you have to. For example, you get a job, and you make 100 bucks a week, paycheck every 2 weeks. Are you going to bring your mommy and/or daddy to cash/deposit the check? No, because it's embarrassing and it's a PITA...you drive to the bank and do it yourself. It's a continual process. As long as you aren't a spoiled brat just getting money from your rents, you should be fine learning the basics. Now, mortgage payments and tax returns and bills, etc, aren't things you have to know about, seeing as you don't pay for your housing, water, electricity, cable, and other sorts of crap like that. You learn that when you start off on your own. It shouldn't be something you worry about.

Now, if I was thrown into a situation where i'd have to work, pay taxes, pay bills, etc, I think I could hack it. Well, I might give the 1040 to my mom or H&R Block, but it's not too hard.

 

[shopbruin]

hmm when i fly southwest they haven't asked for the credit card. when i flew united they would ask occasionally. it usually will say on the ticket to bring valid government issued picture ID and the credit card used to purchase the ticket. want to make sure you didn't steal a credit card to go joyriding around the country.

as for taking care of finances, you should at least be looking at your own bank accounts. it's one of the first steps to understanding how much money you really do spend. and if you visit the ATM, they don't give you weird looks. unless you're depositing cash - always strive to deposit cash inside the bank.

as for taxes, now you can just get away with filling out 1040EZ form using a tax software program like turbo tax. it's when you have deductions to deal with that it gets confusing. a good way to get in the habit is to SAVE ALL YOUR RECEIPTS. when i pay my credit card bills i make sure i check the charges against the receipts i have in my posession. it's a good way to make sure all the charges are correct and you can dispute any that come up as odd. if you save everything, it will help you out immensely later on.

 

[rgwalt]

IMHO, as soon as you are holding down a real job where your employer deducts taxes from your paycheck, you need to learn how to start filing your own taxes and managing your accounts and investments. I learned when I was 19 as I had my first job at the time, so I had to learn how to file and pay my own taxes. I had been managing my own bank account since the age of 12, when I started mowing yards in the summer. I now take care of paying bills and rent at my apartment on a monthly basis, balancing a checkbook, etc.

At your age, I would recommend that you take the time to learn how to balance a check book, and manage your own bank account and other investments. If you don't have a job, you probably aren't earning enough interest on the investments to have to file taxes. If you do have a job, you REALLY should learn how to file your own taxes, unless your parents hand everything over to an accountant. Even then, it is a good idea to learn how tax laws work. I've been filing my own taxes since I was a sophomore in college. It is a life skill that everyone needs to pick up. Early on in your life, when you are in college or working a job after graduation, there usually isn't any need to hire an accountant to do your taxes. You can save yourself some money by doing the taxes yourself, and they really aren't hard at all. Neither is balancing a checkbook, and I'm sure your parents would be more than happy to take some time to explain these things to you.

Ryan

 

[psianime]

Yes. But to manage money you must have some to manage in the first place =)

-psianime

 

[Colt45]

vega with a 454 w/ blower, and a 9" with fatties should do it. hell it should doa <10 sek 1/5mi.

 

[gogeeta13]

Originally posted by: Colt45
vega with a 454 w/ blower, and a 9" with fatties should do it. hell it should doa <10 sek 1/5mi.

wrong thread?

 

[SeaSerpent]

no

 

[ianbergman]

gotta learn the financial stuff asap - it's not difficult, mostly just common sense. even if you don't have any money to put your new knowledge to good work, there'll be some point in your life when you're really, really glad you know what all the mumbo jumbo on the back of a credit card agreement means...

 

[NuclearFusi0n]

Originally posted by: psianime
Yes. But to manage money you must have some to manage in the first place =)

-psianime

count me out

 

[Goosemaster]

Originally posted by: johnjohn320
(Sorry to start so many threads, the questions keep popping into my head tonight!)

As the title of the thread indicates, I'm a junior in high school. A recent event at a commercial airport has sort of got my mind going on this matter: I had an E-Ticket for American Airlines to board my flight and return home. At O'hare airport, I showed them the form, told them my name and where I was going, showed them my driver's liscence and all was well. At San Jose airport, however, driver's liscences were, for whatever reason, not valid/ample identification. The woman asked me to present her with a credit card with my name on it. I informed her I didn't have a credit card, and she looked at me like I was crazy.

In sort of an odd, indirect way, this got me thinking about all the confusing sh!t that occupies adult daily life-taxes, mortgage payments, bills, checking accounts, etc. To be honest, while I have the basic concept of all these, I doubt my "expertise", or lack there of in these areas, would be enough for me to manage all of them myself. My parents take care of all my bank accounts. And when my taxes come on those accounts , while the money is mine that goes Uncle Sam, they take care of all the logistics. Dealing with the bank seems painfully confusing on the times when I've ventured in with a parent or sibling. Just making a withdrawl from my own account seemed to arouse all sorts of peculiar questions from the clerk.

My point (indeed, there is one!): At age 16, did you have a firm grasp on all this jargon? If not, when, and how, did you learn about all of it? It's one aspect of the "real world" that, as ashamed as I am to admit it, still confuses the heck out of me.

Thanks! And happy new year.

EDIT: Perhaps I should rephrase this. It's not that I've been taught and that I don't understand it. It's that I haven't been taught, and I'm not really sure how to go about learning.

Personally by all means if you feel you are ready go for it. One step at a time it is.

Obviously you are young so you haven't learned everything yet...I repeat the same for myself.

One thing you will gradually learn though is this:

Never judge a process, the institution where it takes place, or the task at hand by your first experience.
There are alot of unpleastant charcters and rules/regulations that make the whole process seem dauntling but with experience, you will see that a man of your character will have no problem dealing with it.

Oh yeah..and read the damn pamphlets.....there is nothing as having an unpleasant adult treat you like a little 'prick' because you made a 'mistake."

good luck.


By the way, I control 2 Checking accounts, 2 CC acounts, and am learning Visual Basic.

Visual Basic is easy.

Still, guess which is harder?

 

[FeathersMcGraw]

Originally posted by: johnjohn320


At San Jose airport, however, driver's liscences were, for whatever reason, not valid/ample identification. The woman asked me to present her with a credit card with my name on it. I informed her I didn't have a credit card, and she looked at me like I was crazy.

In sort of an odd, indirect way, this got me thinking about all the confusing sh!t that occupies adult daily life-taxes, mortgage payments, bills, checking accounts, etc. To be honest, while I have the basic concept of all these, I doubt my "expertise", or lack there of in these areas, would be enough for me to manage all of them myself. My parents take care of all my bank accounts. And when my taxes come on those accounts , while the money is mine that goes Uncle Sam, they take care of all the logistics. Dealing with the bank seems painfully confusing on the times when I've ventured in with a parent or sibling. Just making a withdrawl from my own account seemed to arouse all sorts of peculiar questions from the clerk.

My point (indeed, there is one!): At age 16, did you have a firm grasp on all this jargon? If not, when, and how, did you learn about all of it? It's one aspect of the "real world" that, as ashamed as I am to admit it, still confuses the heck out of me.

Credit card isn't a valid form of ID, but every time I've used an e-ticket to fly somewhere (which nowadays is pretty much all the time, since I don't really feel like paying paper ticket surcharges) I've been asked to present the credit card used for the ticket purchase (it is apparently considered de facto ID if you use one of the touch-screen terminals that are popping up for processing of e-ticket transactions).

As for the world of personal finance, I didn't much bother with it until I was in college (which introduced me to the wonderful world of debt). By 16, I had already opened savings and checking accounts, but did not have a credit card (and all those arguments about building a credit history while you're young are baloney if you don't have an understanding of how debt works and good fiscal discipline -- yeah, you'll build a credit history -- a bad one). There were some "real world 101" seminars/lectures offered to the student body that were good introductions to these concepts -- the rest was gotten by finding books from the library.

It's even easier than that now, thanks to the magic of the web. My favorite site for personal finance right now is The Motley Fool. They have a pretty decent section on personal finance that I recommend reading if you're interested in these issues.

 

[acidvoodoo]

hey:

i was over in massachusetes this summer (i live in england) seeing my dad, and i also took up a job at a country club. Taxes were deducted from my paycheck, and all in all i made $2200 before taxes. I understand i should get some of the money that went to taxes back. What am i supposed to do. I worked at the same place the summer before, and my dad said he took care of the tax return for me. It's been over a year and a quarter since that summer, and i havent seen anything. My dad just said 'it takes time'. So either he swiped it, or does it really usually take this long?

thanks for advice

 

[Gibson486]

My parents take care of all my bank accounts.

\

well, if you're 16 and your parents still take care of your bank account, then I doubt you are ready. I started managing all my money when I was 13 or 14. No credit? get a checking account and use a debit card. Banking is easy. you put money in, take it out, account for interest.

 

[Apathetic]

At 16, I was taking care of my own bank account but my parents were doing all the paperwork for my taxes. I didn;t start dealing with my own taxes until I was 18 or so. Having some practice would have definately helped me.

Since tax time is almost upon us, why don't you have for parents walk you through the process. You'll probably be using a 1040EZ for your federal taxes (which is fairly easy to fill out).

I have no idea why that woman would ask you for a credit card. It is NOT a valid ID. Unless things have changed tremendously since I was 16, the woman was on crack thinking a 16 year old would definately have a credit card.

Dave

 

[KK]

I believe the best way to learn to take care of your finances is just to jump in with both feet. It is not hard if you use some common sense on what you can afford and what you cannot. You're either in the black or the red, pretty simple concept. I never had a bank account until I enter the airforce, really didn't need one till then. At first I would try and keep the checkbook up to date, but as time went on the newness of having an account wore off. I went to just checking the monthly transactions and been doing that since. Not an exact science, but it gets the job done, and with the invent of online banking just makes it that much easier. As far as taxes, I enjoy doing the taxes. First it was the 1040EZ where I was able to call the tax thingy to report by telephone. Then I had to do a 1040 standard deduction, and now I get to do creative accounting via itemized deductions.

Just go for it, you'll be doing it soon enough.

KK