How to get financially ready for college?
As a high school student, you work hard to earn good grades and participate in extracurricular activities because you know it's essential if you're considering going to college. Everyone talks about applications, writing essays, and student life, but do any of your friends talk about the cost of living, food, textbooks, transportation, and all the other "not fun" aspects of college? Probably not. Let's discuss how you can financially prepare for your dream college while still in high school.
-
Explore earning opportunities
Getting started with a small local business doesn't have to be complicated. You could inquire if anyone needs babysitting in the afternoons or weekends. Perhaps you know someone with a dog that needs to be walked once a day or you can offer dog sitting while the owner is away. Some individuals may require help with yard care. If you excel at math, Spanish, or any other school subject, consider offering tutoring services. There are numerous opportunities to earn extra income based on your skills and availability.
-
Learn the basics about your money
Once you have some extra money, consider opening a checking and savings account at the bank. Be sure to inquire about important details such as the interest rates on your savings account, the amount of the overdraft fee, and how to interpret your monthly statement. Understanding the management of your money is crucial for your financial success.
-
Budgeting
Remember, understanding your income and expenses is essential. Properly budgeting your money involves estimating your income and knowing when you need the money to cover expenses. You can use any formula you want, but when you have fixed expenses like rent or mortgage, the 50/20/10 rule can be useful. This rule recommends allocating 50% of your income to needs, 20% to savings, and 10% to wants. You can adjust these percentages to suit your individual financial goals, income, and circumstances. Remember, even starting with small amounts at the beginning is a great way to start, thanks to compound interests.
-
Compound interest is your friend
Compound interest, when speaking of savings, is your best friend forever! Compound interest is all about delayed gratification and patience. Let's say you started saving when you were 6. If there’s $100 at a 10% rate of interest, in 10 years it’ll turn into $259. That’s only if you didn’t add anything to the $100 that you started with! If you pay yourself first and put a set amount of money in the savings account, before you use it, you could have much more by the time you are ready to go to college!
-
Research colleges, their prices, and options for financial aid
When it comes to costs, remember the sticker price isn't the final cost. The net price is what you'll pay, after scholarships, grants, and financial aid. So don't let the sticker price scare you off!
Keep in mind that not every college is the same. Some colleges might require you to live in the dorms for your first year or two, which means extra costs like meal plans. If you decide to live off-campus, don't forget to budget for commuting expenses. It's really important to thoroughly check out the living situation whether you decide to live on or off campus.
It's also super important to make sure the college is accredited, especially for federal financial aid eligibility. Attending a non-accredited school might make you ineligible for financial aid, and we definitely want to avoid that!
Getting ready for college is an exciting journey! Take the time to explore and find the school that perfectly matches your educational goals. Give yourself the opportunity to prepare, save money, and apply for scholarships to make your college experience more affordable. Remember, asking questions and seeking help is a sign of strength. With the right mindset, you’re set for success! 🌟
