Saving Money for High School and College Students

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It is hard for anyone to save money. You often think you have to cut corners here and there to save enough money to mean anything. This is not true at all. Anyone can save money no matter how big or small the amounts might be.

Before you start reading all of this, I want to hammer something into your head. START SAVING WHILE YOU ARE YOUNG! Without bills to pay, children and pets to buy things for and few responsibilities.

1. Work

This might be obvious and sound a bit silly, but working is how you make money. The sooner you get to work the better. It may not always be a glamorous job depending on your age and previous job experience, but it will be enough to get you started.

2. Live with Family

I know, I know. Who would want to live with their family more than they have to? Me. I am 21 years old. Do I really want to be living with my family? No, not really. After time I have realized that maybe it is not such a bad thing. I do not have to pay rent or a mortgage, for my own groceries, utilities, HOA payments and other expenses in life. All of these expenses add up much quicker than you expect, and suddenly you do not have any money do go out to the movies or a date night. I pay for my phone, car payment, and car insurance every month. In total I have a consistent $550 in expenses each month.

Each paycheck that I receive, I put money into four different locations for savings. I put money into my savings account with my bank, into the Qapital app, my brokerage account, and a Roth IRA account.

a. Savings Accounts! – If you have a bank account open, then you have a savings account as well. I actually consider this my last line of defense if I were to be hit by a financial burden. I would touch this money last. At this point in time, I transfer 7% of my paycheck to my savings account. 14% of my monthly income.

b. Qapital App – I found this app in late 2019 and I will never stop using it. This app has many different options on how you would like to save money. I have three savings goals at the moment. An emergency fund, vacation fund, and a future home fund. I use the savings rule of “Set and Forget”. The app takes $25 out of my bank account every week and puts it into my emergency fund, and $20 each week into my vacation fund. I have two rules set up for my future home fund. A set and forget of $15 a week, and a “Round Up” which rounds up any spending on my card to the next $1. If I spend $49.25, the app will round that up to $50 even, and deposit $.75 into my fund.

If you are interested in downloading the Qapital app, use the code bd7563ch and get $25! Who doesn’t love free money!?

c. Brokerage Account – What is a brokerage account you might ask? It is a stock investment account. You might be thinking stocks? Really? Yes. I started investing when I was 16. My dad opened up a custodial account because I was under age, but I was in charge of depositing my own money, and investing it in the companies that I wanted to invest in with my fathers advise. I have grown my brokerage account to over $21,000. Most of that is my own money, but some is from dividends. I buy into stocks that have a 4% dividend pay out. This means you are receiving 4% of your position back from the company as a thank you and an incentive to continue to invest in them.

If anyone would like to know more specifics, please feel free to reach out!

d. Roth IRA Account – What the heck is a Roth IRA? It is an individual retirement account. START SAVING WHILE YOU ARE YOUNG! The earlier you start saving, the better off you will be in the future. Starting young will help set you up for success in the future. Roth IRA’s earn compound interest. This means your money will roughly double every seven years. The earlier you start investing into a Roth IRA account, the more your money will double before retirement.

3. “Budgeting” or Cutting Back

Budgeting may sound silly but it really is helpful. Take a look at your spending now, and see how much money you have before receiving your next paycheck. If you spend a lot, try to cut back on coffee, subscriptions that maybe aren’t need, fast food spending, etc.  I try to limit myself to one or two coffees a week which is a big improvement from five a week. This saves me roughly $15 a week, or about $780 in a year. That is just on coffee alone.  Try to eat lunch from home four days a week during a work week, but spoil yourself one day. Depending on how much you normally spend, this could save a dramatic amount of money each year.

This does not mean that you cannot go out and enjoy life and do fun things. Cutting back on spending allows you to go to more concerts, go on more trips and so much more. It is making sacrifices for the better.

About

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Hi! I am Lauren! I am 21 years old, currently attending college classes online, and working full time. I still live with my large family of 7. My parents, two younger sisters, my grandpa and my aunt. We have one dog, three cats, a guinea pig, and we foster for an animal shelter in Denver.

I am an absolute Disney freak! I love Disney a ridiculous amount. My family lived in Tokyo, Japan from 2010-2012. During those two years we would go to Disneyland almost weekly. That is where my love really grew. In 2018, I bought three tickets for my sisters and I for Disneyland in California, which eventually got my parents to go!

When I am not working or doing school work you will find me spending time with my two sisters who help me with this blog from time to time, or with my boyfriend. Family means everything to me which is why I do not mind living at home, but sometime in the next few years it will be time for me to venture out on my own and get my own place.

Lifestyle means different things to different people. Health, traveling, finances and so much more.

Health can be both physical and mental health. Physical health is important to ensure you are staying in the best place you can be. This does not mean weighing less than you need to, or eating just enough to get by to stay thin. Healthy is putting enough fuel in your body to that will keep you going both short term and long term. Mental health is finding a way to be okay no matter what kind of situation you may be in. Knowing when you need assistance from friends, families, and maybe professionals.

Who doesn’t love to travel? I particularly love traveling to a Disney Park even though it’s not often. My family moved to Tokyo, Japan when I was 10, and my love for Disney and traveling grew. I hope to travel more in the next couple of years and experience places I have not been before. I have been to 33 states, and would love to visit all 50.

Personal finance recently became a huge part of my life. Saving money for the future, emergencies that may arise, investing in the stock market, and other small things that have helped me become financially stable. I do still live with my parents which makes things easy on me, but for young people I think it is important to learn early how to manage your money, and get ahead before you are spending money on a home, car payments, insurance, etc. People may think there is no way that this is possible for me. Wrong. It is possible for anyone.