MoneyTalk

How can I save money for my 創ew used car?

Al Suffrin
May 09, 2007 at 1:27 pm  | Mobile Reader | Pring this storyPrint 

Dear Mr. Suffrin: I知 13-years-old and I知 saving my money so I can buy a car when I turn 18. I earn $60 a month babysitting for neighbors.

I also get $40 per month for doing my chores around the house.

My mom gives me $10 for every A I make on my semester report cards, and I always get three or four of them, so that痴 $60 to $80 per year.

She pays for my clothes and other expenses.
How much should I save for my car - and where should I put the money?

I have $500 in the bank now. - Looking Ahead in Hahnville

Dear Looking Ahead: Assuming you値l be able to earn 5 percent interest on your savings, the $500 you致e already put away plus the $110 per month you anticipate making will grow to $6,442 four years from now, when you turn 18.
Whether the $6,442 is enough for the car and your rainy-day account depends on the type of car you want and what you feel you値l need for a rainy day.

The money should be invested in short-term certificates of deposit (6-month to one year) or a combination thereof. CDs yielding at least 5 percent are what you want.

The CDs should mature on the date the money will be needed for the car purchase. Talk to a banker or broker for details.




View other articles written Al Suffrin

featured merchant

Craig's Barber Shop
Craig's Barber Shop Craig's Barber Shop has been locally owned and operated for over 25 years. We do men, women, and children's haircuts. Come in and enjoy that unique barber shop experience! Walk in and relax a while with Craig, Cheryl, and Angel!

Wildcats forge new identity
Wildcats forge new identity
- 1393 views
After finishing last season 14-1 and losing a host of key players to graduation, the Destrehan Wildcats regrouped this spring to find a new identity.