What a 17-Year-Old Should Do With Their First $1,000
- Wealth Whisperer
- Jul 25
- 4 min read
Congrats! You finally made your first $1000 dollars. Whether it was from a summer job, birthday money, or smart financial habits, this is a big milestone. You are now a thousandaire!
But wait, now what?
You might be tempted to spend all your money on expensive shoes, new clothes, or a new console. I get it. However, wouldn't it be better to make your money work for you?
Here's what to do with your first $1000 to set yourself up for long-term financial success.
$200: Invest in Yourself
What does this mean?
Enroll in an online course in a subject you're passionate about. Try Skillshare, Coursera, or even Youtube!
Buy gear for an enriching hobby. If you want to start podcasting, buy a microphone. If you want to start a Youtube channel, buy a setup.
Learn a valuable life skill that sets you up for future success like coding or public speaking.
Whatever you do to invest in yourself, make sure it's valuable: investing in yourself yields the greatest ROI you can get.
$300: Start Investing Early
Here is where it gets tricky. Many people hear the term investing and immediately freeze because they don't know anything about money or the stock markets. In reality, investing can be very easy.
Here’s how to actually do it at 17:
Ask a parent or guardian to help you open a custodial brokerage account.
Some great options include Fidelity Youth Account, Charles Schwab Custodial, or Greenlight + Invest.
Becuase you're under 18, you will need parental guidance. They will also have rights to the account until you turn 18; then, you will have full control of it.
Fund the account with $300.
Learn, Learn, Learn
Before you do anything, learn the basics. Start here:
Look up what an ETF is (spoiler: it’s like a bundle of stocks)
Google terms like “index fund,” “brokerage account,” and “diversification.”
Watch beginner-friendly YouTubers like Graham Stephan or The Plain Bagel.
Read Investopedia articles. Investopedia is literally an investing encyclopedia
The more you know, the less likely you’ll make emotional or reckless decisions.
Don't be afraid to ask questions. If you don't understand something, dig deeper. The best investors are always curious!
$200: Roth IRA (if you have a job)
What is it?
A Roth IRA (Individual Retirement Account) is one of the best financial tools available to young people, but most teens have never heard of it. It lets you invest your money after taxes, and then withdraw it completely tax-free in retirement. That’s right! No taxes on the profits, ever. If you invest $200 today and it grows to $2,000 by the time you’re 65, you get to keep every dollar. That’s what makes it so powerful.
Who qualifies?
You can open a Roth IRA if you’ve earned income from a job. This includes:
A part-time job at a store or restaurant
Babysitting, lawn care, or tutoring
Any legit work that can be documented (W-2, 1099, or personal invoice)
If you're under 18, your parent or guardian will need to help you open a custodial Roth IRA, which they manage on your behalf until you reach adulthood (usually 18 or 21, depending on the state).
How to open one (in 5 simple steps):
Ask your parent or guardian to open a custodial Roth IRA
Go to Fidelity, Vanguard, or Charles Schwab (Fidelity is the most teen-friendly).
Search for “custodial Roth IRA” and follow their sign-up steps.
Make sure you’ve earned at least $200 this year
Your Roth IRA contribution must be equal to or less than what you earned from a job.
No job = no Roth IRA contributions (even if someone gifts you money).
Deposit your $200 into the Roth IRA account
Link your bank account and fund the account like you would any online transfer.
Choose what to invest in
A Roth IRA isn’t an investment itself: it’s just a container. You still need to buy investments inside it.
Stick with low-cost index funds or ETFs, like VTI (total market) or SPY (S&P 500).
This gives you diversified exposure to hundreds of companies.
Let it grow. Don’t touch it
The money in a Roth IRA is meant for the long game (like retirement), so the real power comes from letting it sit and compound for decades.
Why it’s a cheat code for teenagers:
You’re young. That means decades of growth potential.
You’re likely in a low tax bracket now, so you pay almost nothing in taxes going in and zero coming out.
Even a few hundred dollars invested now can turn into tens of thousands later, thanks to compound interest.
$150: Build an Emergency Fund
An emergency fund is exactly what it sounds like. A cushion for when life gets tough. A cracked phone screen, a flat tire, or a broken Xbox controller.
How:
Open a high-yield savings account (HYSA) through banks like Ally, Discover, or Capital One. A high-yield savings account is a savings account that has higher interest rates than your typical savings account, meaning your money grows faster. They are considered low-risk and funds are easily accessible.
Put $150 dollars in. Do not touch this money unless an emergency happens.
Typically, you want to look for accounts that have an APY (Annual Percentage Yield) of over 4% and no monthly fees. An APY is the total intertest you accrue from your savings when taking compound interest into account. Compared to APR (Annual Percentage Rate), APY gives you a more accurate percentage yield.
$150: Guilt-Free Fun
What's the point of having money if you don't use it. Obviously spending all of your money on wants is objectively a terrible idea. But you should be able to spend the money you have, but only in moderation. Go out with friends, buy something you’ve had your eye on, or take a weekend trip. The good thing about this kind of spending? It's budgeted, meaning you are making wise financial decisions and setting yourself up for long-term success!
And that's what you should do with your first $1000, atleast that's what I think. Others will tell you differently, and to be honest, there isn't a correct way to manage your money. One thing is for sure though: the smarter you are with your money, the more financially stable you will be in the future.