Final answer:
Peter is advised to do all of the above: save for the future, research bank accounts, and set up a budget. This will enable him to leverage compound interest, manage finances efficiently, and prepare for unforeseen events.
Step-by-step explanation:
If Peter, who is 16 years old and has a part-time job, is thinking about opening up a bank account, the best advice would be D) All of the above, which includes starting to save for the future, researching different types of bank accounts, and considering setting up a budget. This comprehensive approach will help Peter become a more informed decision-maker in our economy. By starting to save early, Peter can take advantage of the power of compound interest, building his savings over time. It is also crucial for him to understand different financial products, like checking and savings accounts, and the importance of maintaining a good credit score, especially if he considers borrowing in the future.
Learning how to budget will help Peter manage his income and expenses effectively, including planning for emergencies by saving at least three months' worth of expenses. Banks often offer free checking accounts to students, which can be a good start. Choosing the right financial institution is important as it affects the security and potential growth of his money.