The speaker, Graham, shares his advice for teenagers turning 18 on how to invest and manage their finances. He emphasizes the importance of getting a credit card, opening a personal bank account, signing up for a Roth IRA, staying away from consumer debt, getting a job, living below one's means, and investing wisely.
He suggests that teenagers should get a credit card as soon as they turn 18, not for the presents or birthday cake, but as a tool to build their credit history. He recommends the Discover it's secured card, which is free, has no annual fees, and offers cash back on every purchase.
Next, he advises teenagers to open a personal bank account in their name without any fees. He recommends online banks like Lie Bank and Bank of America, which offer free services and no monthly maintenance fees.
He also encourages young people to sign up for a Roth IRA as soon as they turn 18. This type of retirement account allows young people to contribute post-tax money, which can grow tax-free until they reach 59.5 years old. He recommends setting up a Roth IRA through Vanguard or Fidelity.
Graham also advises teenagers to stay away from consumer debt and to only buy things they can afford. He warns that debt can ruin lives, especially at a young age. He suggests getting a job to gain experience and to save money.
Lastly, he recommends living below one's means and investing in a low-cost broad index fund. He suggests Fidelity or Vanguard funds, which can be a good investment for retirement. If young people are willing to take more risk with their money, he suggests starting a business or investing in cryptocurrency.
In summary, Graham's advice for teenagers turning 18 revolves around financial responsibility, including getting a credit card, opening a personal bank account, investing in a Roth IRA, avoiding consumer debt, getting a job, living below one's means, and investing wisely.
Here are some key facts extracted from the text:
1. The speaker is Graham, a personal finance expert who did not go to college and became a successful real estate agent and YouTuber.
2. The speaker advises teenagers to get a credit card as soon as they turn 18 and use it responsibly to build their credit history.
3. The speaker also recommends opening a bank account with no fees, a Roth IRA for tax-free retirement savings, and a low-cost broad index fund for long-term investing.
4. The speaker warns against consumer debt, such as high-interest credit cards, personal loans, or auto loans, that do not make money or add value to one's life.
5. The speaker encourages teenagers to get a job and gain work experience, as well as to take risks with their money if they have any ideas or opportunities for business or investment.
6. The speaker suggests that teenagers should not go to college just for the sake of going, but only if they have a clear-cut path that requires a degree, or if their parents are paying for it, or if they go to a two-year community college first.