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How I Manage My Finances at 17

Have you ever wondered how teenagers aged 15, 16, or 17 save their money? Most people would probably answer that teenagers either spend all their money, stash it in a bank account, or even keep it tucked away in a sock. Let me share how I personally save and invest my money and how I developed this approach. 

 

My Saving and Investing Strategy 

Breakdown of Net Worth 

I divide my wealth into two main categories: cash and investments. In assessing my financial situation, I exclude material goods like clothes or other possessions. 

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Currently, cash and cash equivalents make up 44% of my wealth, while investments account for the remaining 56%. My investments are further broken down into: 

  • Stocks: 47.5% 

  • Gold and silver: 8.5% 

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Portfolio Composition 

As mentioned, stocks represent 47.5% of my wealth. I currently hold several different stocks in my portfolio. Here are some of the main ones: 


In addition to stocks, I hold some cash in my investment account , which I received after partially closing a position. 

  • Hims & Hers: I’ve partially closed this position and plan to sell the remaining shares as well. 

  • Pinduoduo: A company known for the Temu platform. I’ll write more about it in the future. A short post explaining why I bought Pinduoduo https://x.com/oskarvolcansek/status/1828121106412101950

  • PayPal: I’ve already written about this investment. https://www.oskarvolcansek.com/en/post/why-i-bought-paypal-stock

  • Dollar General and Crocs: Blog posts about these two companies are in the works. 

  • Amazon: My smallest position, which I received as a promotional bonus for signing up to an investment platform. 

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My Income and Saving 

Sources of Income 

Currently, I have four sources of income: 

  1. State Scholarship: As a high school student, I receive modest but welcome financial scholarship. 

  2. Corporate Scholarship: I currently receive a corporate scholarship. 

  3. Birthday Gifts: I also count birthday money as part of my income. 

  4. Competition Prizes: This year, I placed third in a national accounting competition and received a prize of 250 euros. I expect to achieve similar success again this year. 

 

Saving Strategy 

When talking to my peers, I’m often surprised by how little they save relative to their income—or that they don’t save at all. I was raised to believe that money should be saved, not wasted. 

I’ve taken this a step further: I currently save most of my income. I only spend money on things I can justify, like subscriptions for maintaining this blog and the tools related to it. 

 

Why I Save So Aggressively 

I save with one goal in mind: I want to start my own business. 


Accumulating Capital 

To start a business, you need capital. Capital can be accumulated in two ways: 

  1. Reduce current spending and save the surplus. 

  2. Grow existing capital through investments. 


If you don’t have capital—money—you can’t grow it. Therefore, the first step in accumulating capital is reducing spending and saving your surplus.


Once you’ve accumulated enough capital over time, you can start growing it through investments.

 

This is exactly what I’m doing: I’ve minimized my spending and am working to grow the money I already have through investments. 

 

Why I Hold So Much Cash 

Cash constantly loses its value due to inflation. So why do I keep cash in a bank account earning 0% interest annually instead of investing it to generate returns? 

  • About half of this cash is reserved for an upcoming investment in product inventory I’m developing. 

  • I also hold cash so that, in the event of a recession, I can purchase assets at discounted prices. 

 

This is how I approach saving and investing at 17. What’s your strategy? 

 
 
 

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© 2023 by Oskar Volcansek

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