He's under the age of majority but wants to park his money somewhere safe....

[Edge of Reason]

Not sure if I should have posted this under Mini Mustaches but here is my quandary.

I have a 17-year old that has worked part-time for the last 2 years. He has saved up some money but has also spent a lot (mainly on food). He wants to focus on his studies and getting into a good school so he decided to stop working for his senior year.

He is concerned that his willpower won't keep him from spending his entire stache. He'd like to put most of this money into something that would be difficult to access. I'm not sure if that is possible as he's still under the age of majority for another 2 years (19 where I live).

We are in Canada and his Youth Account (chequing and savings) is with TD if that helps. I could open an account on his behalf but would prefer giving him that responsibility. Does anyone have any suggestions for options that he can control on his own?

[GizmoTX]

A high yield online savings account and/or CD.

DS opened bank accounts & a credit card when he was under 18, and yes, I had to be on the accounts, but transactions do not require joint approval. He managed them completely, but knew that I could (and did) look at them online.

[Villanelle]

I don't speak Canadian-banking, but it sounds like some CDs might serve his purposes.  He could still access the money if he really wanted or needed to, but it's a little more complicated than just a regular checking or savings account. 

[ChpBstrd]

How about in a coffee can under the bed, counted daily?

Your 17 y/o needs to learn advanced delayed gratification skills now while it is easy to learn and the stakes of failure are low. Even better is if he fails to control his impulses and gets to experience the deprivation and negative feelings of being broke. What did he lose? $2k?

Yes, your 17 y/o is showing advanced maturity, insight, and long term planning skills by wanting to set up barriers between himself and wasting his money. It’s what we adults do when we avoid media and segregate our accounts. Still, in 2-4 years there will be a credit card in his wallet or a cell phone payment option in his pocket. What then?

Make him flex those Mustachian muscles. Put the cash in plain view. Encourage/tease him to waste it on stupid shit and go broke, and make him resist your social pressure so he can stay solvent (resistance? Sounds like fun to most 17 y/o’s!). It’s OK to explain what you’re doing - it can even be a game between you two. Soon he will face rising peer pressure, marketing, offers to go into debt, etc.

In today’s world this is a survival skill you’re teaching. Literally, poor people die years earlier on average ! Be a good mentor and don’t get a CD.

[Buffaloski Boris]

How about in a coffee can under the bed, counted daily?

Your 17 y/o needs to learn advanced delayed gratification skills now while it is easy to learn and the stakes of failure are low. Even better is if he fails to control his impulses and gets to experience the deprivation and negative feelings of being broke. What did he lose? $2k?

Yes, your 17 y/o is showing advanced maturity, insight, and long term planning skills by wanting to set up barriers between himself and wasting his money. It’s what we adults do when we avoid media and segregate our accounts. Still, in 2-4 years there will be a credit card in his wallet or a cell phone payment option in his pocket. What then?

Make him flex those Mustachian muscles. Put the cash in plain view. Encourage/tease him to waste it on stupid shit and go broke, and make him resist your social pressure so he can stay solvent (resistance? Sounds like fun to most 17 y/o’s!). It’s OK to explain what you’re doing - it can even be a game between you two. Soon he will face rising peer pressure, marketing, offers to go into debt, etc.

In today’s world this is a survival skill you’re teaching. Literally, poor people die years earlier on average ! Be a good mentor and don’t get a CD.

The contrarian view. I like it!

[Stimpy]

Why not do both.  Have him take maybe most of his money and put it in a CD, and have some of it out in a savings account, that way he learns how to work the system.  ie Save for something bigger (Also known as investing long term), and keep some on the side (untouched) in case he needs it for idk, an emergency? 

As it sounds like he has enough understanding to know what he should do, I suspect you should just suggest various options (like the CD or the coffee can or a real index investing account, etc) and see which ones appeal to him.  It will help him feel like he is really in charge of his financial future and your advice will give him the guidance he needs to get that started on a good path.

Good luck.

[BECABECA]

Is there a Canadian equivalent of a Roth IRA?