Achieve Financial Success with Budgeting After Graduating
It is that time of the year. Many high school seniors are preparing for graduation. Also, many of those graduating will quickly begin preparing for their first semester of college. This means new experiences and responsibilities.
For a lot of students, this will be the first time may be responsible for managing their own money for the first time. It’s important for them to create and maintain a budget. Given there are less than 20 states that require a course in personal finance, it is likely they may not know how to budget.
I have some free resources that may be able to help. Some may not like to use paper and pen, although I believe that helps all to get more intimate with their money. If this isn’t your preferred method, don’t fret – I have a great suggestion. It’s an easy app that can help you to manage your budget.
Some may be thinking, what money are they budgeting? Well, many high school students have jobs that they work in addition to classes or they may get an allowance from their parents during school. This is why they should be managing their money well before getting dropped off on campus. They need to start organizing what they spend money on.
As they manage their own money, it’s important they understand the difference between a need and a want. A need is something that is required like shoes on your feet or food. A want is the brand of shoe or the type of food. They can save their money by managing their wants.
During a student’s college career, they will be faced with TONS of decisions regarding money. They should first try to start building up a savings account to be prepared financially for an emergency. This is important as emergencies can happen at any age.
They can earn this income and pocket change by monetizing their skills. A great way to do this is by starting a side hustle. They can also work at a college or university, which can even provide savings on tuition or housing! If they’re great in a subject like English or math, maybe they can tutor. If they like to do hair or cut hair they can do that for other students for money as well!
Three other great side hustles as a student are:
During back to school – school supplies are usually at the top of the list of needs. To save money, research prices, and places before making a purchase. Only buy what is needed and within budget. Amazon is an inexpensive and convenient want to take care of this.
As your student embarks on this journey, they are sure to make some financial mistakes. Keep talking to them about money and finances and encourage them to follow a financial coach, such as myself or others they may be interested in. There is so much information out there but you want to ensure they are getting good and helpful information.
Also, have a heart-to-heart discussion with them about avoiding signing up for credit cards to get prizes or trinkets or starting their credit journey before mastering money fundamentals, possibly using something like Credit Builder Card for no to low credit scores.
A great gift for them is Vol 2 of It’$ My Money. This book is specifically for college-aged students. It goes into detail on topics not taught in most schools. It is an excellent point of education to help them as they move toward adulthood.
Teaching your kids to budget before they go out into the world to start college or a new job is so important. Use some of these tips to make sure they are set up for financial success!