My mom is really pushing me to start investing, but she’s asking for my account info or saying she’ll make a new investment account for me if I don’t. She’s also insisting I don’t need to talk to anyone at the bank because “it’s all done online now.” I think she’s referring to something like a JP Morgan self-directed investment account through Chase, but since we’re not native English speakers, I’m not totally sure what she means by ‘investment account.’
She’s saying things like, ‘You’ve never been poor, so you don’t understand the value of money,’ and ‘You won’t get anywhere just leaving your money in a checking account.’ The truth is, I don’t want to invest right now. I don’t know anything about stocks, I don’t care much about credit scores, and the thought of juggling more accounts stresses me out. I’m only 18 and just started college, and I feel like her managing an account for me wouldn’t teach me anything. I’m worried she’s doing this for tax reasons, especially since my dad mentioned something about ‘avoiding taxes.’
I trust my mom’s experience in finance, but I’m feeling anxious and pressured. Should I just follow her advice, or is this something I should resist?
Since you’re 18, your mom can’t legally open an account in your name without your permission—that’s identity theft.
Don’t give her your account info or access to your money. If she’s on your current accounts, consider closing them and opening new ones that she can’t access.
@YukiJane
This is good advice. Even if she’s not trying to defraud you, she’s probably just trying to teach you about saving and investing. At 18, it’s a good time to start putting away money for retirement, which is usually invested.
It’s illegal for someone to open an account in your name without your consent.
That said, at least consider putting your money in a high-yield savings account instead of a checking account. It’ll grow without you having to manage it.
Out of curiosity, why don’t you want to invest? The S&P 500 has averaged around 11% annual growth, which is way better than any savings account you’ll find. You can just buy a fund that tracks it and let it grow until retirement.
@Markdouglas
With some caution, though. If you’d invested in 2000, it took years to see real gains. Timing can affect outcomes, so it’s wise to know what you’re getting into.
EdwardTurner said: @Markdouglas
With some caution, though. If you’d invested in 2000, it took years to see real gains. Timing can affect outcomes, so it’s wise to know what you’re getting into.
True, but since OP is only 18, they have time for the market to balance out any dips over the decades.
@Markdouglas
Yes, but investing blindly can still be risky. It’s best if OP understands what they’re getting into, especially if they’re being pressured into it.
I think your mom is trying to help you get started with money management and investing. While you say you don’t care about credit or money right now, you really should. These are important skills, and it sounds like she’s trying to give you a head start.
Instead of resisting, maybe sit down with her and say you’re willing to learn but want to start small or try a practice account. At 18, having basic financial knowledge will help you a lot in the future.
Being forced into trading isn’t a great idea. If you’re just starting out, you could put your money into a high-yield savings account. It’s safer, and you won’t have to worry about market risks.
Hollis said:
Being forced into trading isn’t a great idea. If you’re just starting out, you could put your money into a high-yield savings account. It’s safer, and you won’t have to worry about market risks.
Or if you want to start investing but keep it conservative, consider an index fund like SPY or an S&P 500 tracker. This isn’t active trading; it’s long-term investing.
Keeping your money in a checking account isn’t ideal. At least try to put it into a high-yield savings account, or consider some low-risk investments while you’re young.
High-risk investments can lead to big losses, especially if you’re not fully aware of what you’re getting into. Be careful, as these decisions can impact you long-term.
EdwardTurner said:
High-risk investments can lead to big losses, especially if you’re not fully aware of what you’re getting into. Be careful, as these decisions can impact you long-term.
Investing in stable ETFs while young can be a good way to grow wealth over time.
Look into freezing your credit so nobody can take out loans in your name. Lots of cases of parents using their kids’ info for their own financial gain.