My 16 yr old son wants to understand why he should be keeping his money in the bank if it’s not really doing anything there.
He has only approx $4000 in his account
He made approx $1000 in the summer and doesn’t see a point in putting it in the bank.
He wants to use some for a new guitar which is fine. He’s not going to spend the rest of it now maybe to invest
but he doesn’t see a diff in leaving the rest in my safe at home as appose to putting in his bank account. Not sure how to respond to that.
Any books recommendations in general to show him the value of saving etc.
"Only" $4K at age 16? That's hardly an "only" unless he got $10K for his bar mitzvah and spent the rest.
What's the point of keeping money in your home safe where it accrues no interest? In the bank it accrues a few cents. Most experts suggest splitting the money into three parts: 10% to maaser, some to save or invest--I suggest saving some and investing some--and some to spend.
It's going to be hard for him to value money until he has his own expenses. Speak to him about his future goals. Explain how much the basics like rent, car, food and phone cost.
