You may be scooping ice cream, working construction, running a cash register, or teaching kids to swim. Since you probably took that job to save for college, how well did you do?
June—not August—is the time to sit down and strategize your summer savings goals. Money earned in summer and part-time jobs is an absolute necessity for many college students. But even students with generous financial aid packages often scramble to cover "incidental" college living expenses. Having a healthy chunk of change saved up can make a huge difference.
Money often seems to evaporate when you aren't paying attention. Make the most of your summer labor by remembering these tips every payday:
- Set your savings goals for each pay period and follow them. If you don't have a savings account, open one.
- Use direct deposit, if your employer offers it, as a saving and budgeting tool.
- Have a sensible limit for "walking around" money and stick to it. Every time, you hit the ATM or debit card, you deplete your savings.
- Pay in cash and record what you spend each day. How many job hours will it take to pay for that perfect T-shirt or iPod? Think before you spend. Bargain hunt. Clip coupons.
- Live below your means. What spending can you trim? Pack a lunch. Fast food lunches can easily run $25 or more a week. That $2.75 morning latte ($13.25/week) and the $1.25 soda each afternoon will set you back $200 over 10 weeks. Drink coffee from home or soda bought by the case.
- Pay off debt. If you have any debt, pay it off this summer.
- Apply for scholarships during the summer. It takes detective work, writing, and a stamp, but isn't free money for school worth it? Use free search websites like www.collegeanswer.com.
Working during the summer is another step toward the independence you'll enjoy as you move into adulthood. Not only will it help your finances, it may help you learn something about yourself and what you value in an employer or career.
Nellie Mae offers guidance on saving for college, managing the money you earn, and financing your education.