Dear 19-yr son,
In the many years that you will be working, you will be managing your money. There is a way to save early and harvest tax-free all the growth, withdrawal and accumulation of your hard earned money plus leaving an estate to your children. Leave at least 25% of your savings to a long term, conservative, guaranteed at 2% and grows up to 13% with zero market risk retirement strategy. Currently, the index strategy that I employ when helping business owners, bay area professionals and doctors has a return of 8%.
Allocate 25% to real estate/stocks, 25% to term life/disability/money market for emergency and 25% to a limited IRA/401k. You only need to participate in min matching by your employer since you will be taxed around 50% when you use your 401k money before 59.5 yrs old. Don’t forget I told you to have a business owner mentality.
I like that you love to go to thrift stores and you are not driving yet. And you dress up like a manager.
I love you and believe that you will be great although I tease you at times that it is taking a long time for you to graduate college because you now have a GF.