The teen years might seem like a young age to be learning key financial lessons, but with all the upcoming changes in life it’s actually the perfect time. As you reach your 18th birthday, it’s likely that you are almost ready to graduate from high school and head out into the world. You might be getting a job after high school, going to a community college, attending a trade school, or perhaps heading off to university. Instead of living at home and being financially fully cared for, you’ll soon be navigating the world primarily on your own.
Years ago, you might not have had to really think about big financial decisions until you were ready to buy a house. Rentals were affordable years ago and even the cost of college wasn’t that high. Some were able to pay for much of their higher education with great part-time and summer jobs. Now, once you turn 18 or so and go out on your own, you’ll find that the cost of everything is rapidly rising, and you’ll feel the financial pressure immediately. Before you head out into the world, it’s worth looking at some essential financial lessons that can help you along the way.
Look for Scholarships or Grants to Help Pay for School
The cost of attending a college or university has skyrocketed in recent years. Tuition, fees, room and board, and books total an amount that is simply not easy to afford. If you are heading out to a chosen undergrad program at a university, you’ll want to look for scholarships or grants that can help pay for school. Many times, you can get grants or scholarships from local civic organizations, where people band together and contribute so that worthy local students can get a great start on their future. If you plan to study in a specialized field like engineering, you may also find national groups that offer grants to fund your particular field of study.
Taking Out Student Loans
The majority of young adults who attend college or university today find that it’s necessary to take out student loans to pay for the high cost of their education. Typically, you apply annually for student loans to cover that year’s costs. When you are done with your degree program, therefore, you’ll have multiple student loans to make payments on. One of the best ways to manage your outstanding student debt and lower your monthly expenses is to look for a student loan refinance program. When you refinance, you’ll be able to consolidate multiple existing higher interest loans and have one easy payment that saves you money and interest over the life of the loan.
Avoid Taking on Credit Card Debt
As a young adult, you’ll be facing a lot of financial challenges as you start to make your way in life. If you want to truly have a chance to succeed, you’ll want to avoid the enticing credit card offers you receive and opt instead to pay cash for what you truly need. Credit cards are a trap that can saddle you with high-interest debt that you’ll have a hard time paying off. Before you know it, you could owe thousands. If you make just the minimum payment, you’ll be paying interest upon interest for years to come.
Set Up a Monthly Budget
To really take advantage of money saving tips and get a handle on your money and finances, you’ll need to set up monthly budgets. With a budget, you can forecast what you’ll be spending and then track your actual expenditures to see how you are doing during the month. In addition to monitoring categories like housing, utilities, groceries, and automotive costs, you’ll need to account for one-time expenditures like car registration. There are a great apps out there that can help you with this process.
Get a Side Hustle to Bring in Extra Cash
It’s hard to make enough money at your part time or full-time job to cover all of your expenditures. One of the best ways to make sure you reduce your financial stress is to find a side hustle that you love so you can bring in extra cash. You can take the extra money you earn and look at splitting it between a rainy-day fund, and a reward account for purchasing big ticket items that make your life a lot more fun. That way, you’ll be taking care of your financial well-being and saving for things that make life more enjoyable too.