As a senior in high school I just started applying for Universities, this is a super exciting time for me as I am about to start a new chapter of my life, but along with it comes responsibility, especially in the financial field. It doesn’t matter if you stay at home or you live in a dorm, going to College or University is expensive. Because of this, I want to share some tips that might help you save up and budget for this upcoming year and beyond.
Tip #1: Be aware of what you buy
Something that you can start doing now is paying attention to what you buy, and maybe even writing things down to keep track of it. This will show you in what areas you tend to spend the most money, and if there are many unnecessary purchases that you are making. I personally like writing things down, so it might not work for you, but when I do this I can better visualize where my money is going. Nowadays most of us use tap on our cards, with that being so quick sometimes we (or at least I) forget that I am actually spending something, so overall, just being aware of how you spend your money will help you make a plan for the future accordingly.
Tip #2: Get a part-time job
If you haven’t already it is a good idea to look into getting a part time job. Unfortunately, it is way more difficult to find a job now than it was a couple of years ago, but a lot of places love hiring students to work for them. This includes most fast food and customer service corporations such as McDonald’s, Walmart, and so on. Of course, you won’t be making a ton of money, but it is definitely essential to have some type of income no matter where you live. If you can’t find a job in those fields you can always find alternative ways to earn something, like doing yard work, babysitting, or tutoring.
It is very important that you do not overwork yourself as your main focus should be your education. Getting your first paycheck can be super exciting and make you want to put in more hours, but having a job on top of all your schoolwork is extremely tiring. A lot of students, including myself, have felt burnout from doing too much at once. It is crucial that you take care of yourself and your mental health so you can divide your time evenly and get the most out of your University experience.
Tip #3: Create a budget
A budget helps us stay on top of our finances and allows us to create a plan that works toward saving money and paying off any debts we may end up having. It can be comforting for people to have this plan as it shows them how they split up their money. Having a set amount of leftover money every month also helps a lot of us overspend.
There are many templates and outlines online that you can use to guide your process, but ultimately it should fit your needs. I want to share my process in creating a budget so you can get some inspiration and see how easy it really is.
- Calculate your monthly income. As a student with a part-time job, your hours will most likely vary, but you can just look at your approximate hours a week. You also need to calculate your tax deductions and take those away from the total. This is not very fun as it can be a shocker to some people, but it is important to stay on top of this to make sure the amounts are correct.
- Calculate your monthly expenditures. These are the set amounts that you have to pay every month, including things like rent, insurance, gas, your phone bill, and so on.
- You then want to take those things and subtract those from your monthly income.
- From that amount, you need to calculate the things that are not a set amount but are necessities, like groceries. Once you’ve figured out your routine it is a little bit easier to estimate what your grocery bill will be like every month, but at first, it takes a little bit of experimenting.
- In the end, you will have a total leftover. This can be spent on anything you like such as eating out, shopping, day trips, etc. I would also suggest putting some of that in a savings account for your future or if there are ever any emergencies.
Tip #4: Stick to your budget
Making your budget is easy, sticking to it is the hard part. Again, it works if you write it down, or you can use an excel sheet on your computer. There are also lots of cool finance apps that you can use. One thing to realize is that it is okay to spend more money, but it is important you get back on track and make up some of that by spending a little less the next month if possible.
Tip #5: Learn to do things at home
Trying out new restaurants or getting takeout when you don’t feel like cooking is great and definitely part of the University experience, but you shouldn’t be doing that every day. First of all, that’s probably not the healthiest option, plus it adds up very quickly. Learning how to cook simple, balanced meals is essential, and you don’t need to be a Michelin-Star Chef to do it. There are millions of easy recipes out there you can try, it saves you money and you also learn a very important life skill while doing it.
The same idea applies to things such as coffee, most teenagers have a not-so-great habit of drinking this quite a lot, and while buying one coffee a day doesn’t seem like much, over time it can start to really put a dent into your bank account. Here’s a little calculation I did to show you what I’m talking about:
The average price of a medium iced coffee = $2.50
Let’s say I drink this 3x per week, that’s about $7.50
That doesn’t seem too bad, but per month that is around $30
Per year that would be $360, just on coffee alone
Buying a $10 box of (no-name) grounded coffee which you can use for about 1 to 2 months, a $3 creamer, and $3 syrup (if you like that), can save you a lot, and you get to be creative with your drink. Of course these are estimates, but just look at the price differences! Now there is definitely no judgement here as I’m on my second cup of coffee while writing this article, but it’s something to think about and maybe work on in the future.
Tip 6: Apply for scholarships and financial aid
The last tip I have for you is to apply for scholarships and financial aid (if applicable). Going to College and University is expensive, so asking for help in that area is a good thing. Financial aid will allow you to pay your school fees over time so you can afford it when you have a better job later in life, and scholarships are open for everyone, even if you don’t think you are qualified. There are some really big scholarships like Canada’s Luckiest Student or the Loran Scholarship that recognize academic achievement, but there are also lots of athletic and creative scholarships available. If you do some research you can find ones that fit you, just remember to start early as deadlines can be anywhere from October to March. Plus, no worries if you aren’t great at writing essays because for a lot of them that isn’t even a requirement.
The following are some websites that are very useful for finding scholarships:
Remember to find the balance between saving up for your future and living in the present. University is all about new experiences and creating memories that will last a lifetime, but it is also preparing you for the real world. I hope some of this helped you and I want to wish you the best of luck in your upcoming endeavors, wherever you choose to go.
