Well duh. Who did not know that savings accounts are not a good investment. They are called savings accounts for a reason as opposed to investment accounts. Checking accounts are for managing your monthly cash flows, savings accounts are for stetting money aside in a way that makes it hard to spend and Investment accounts are for getting you money to appreciate over time. A person should have all three accounts as well as a credit card and some cash and maybe even some Real Property. I actually have two investment accounts one tax deferred and one not.

When I was 12 I created my own savings account to save my earnings. Nobody opened an account for me with some money. I saved my paperboy money until I had like 30 dollars and then I took it to the bank and opened an account. Every month or so I made more deposits. Then after a couple years I made a withdrawal to buy a motorcycle. That is what savings is. Saving for something you will buy soon. Later I would have an interest paying checking account that I used to save my summer earnings so I could pay my living expenses while I went to school.

I opened my first investment account when I started working full time after college. So at 22 years old I had a checking account, a savings account, an investment account and a 401K at work. I still did not have a credit card. Then it was harder to get a credit card and they all had fees.

I can’t imagine anyone getting through High School and College and not understanding these basic household economic processes.

TEK