Saving for College
You’re at an age where you may earn some money by babysitting or having an after-school job. It’s a good feeling to know you have worked hard when you can go to the movies or buy some new music without needing to ask your parents or grandparents for money. What if instead of spending the money you earn, you could you put it to a better use by investing it in something that is almost certain to pay off? You can, by saving the money for college and investing it in your future.
Trying to save enough to pay for your entire education is probably unrealistic, but don’t let that discourage you. There are many sources of loans and grants to supplement what you save, and the less you borrow the less you will have to repay after you graduate or leave school.
To start saving, ask a parent or guardian to help you open a savings account at a bank. Since your money will earn interest in the bank, the amount you save will actually grow as long as you have it in the account. Set an achievable savings goal for your 1st year of college. If you can save $1000, that may cover the cost of books for your 1st year.
Pros and cons of working
Working while you are in high school can be a great way to earn some money, develop your leadership skills, and gain real work experience that can build your resume for the future. Working can also take up valuable study time. If you are working out of financial necessity, try to find a job with flexible hours where you can find someone to cover for you if you need to devote time to school work. If you are not sure you can balance your school work with a job, you may want to hold off on working until you get a better handle on your school work. If you must work, try to find a job where you choose your work hours, like babysitting or doing yard work for neighbors.
Spending vs. saving
Developing good money management habits now will serve you well for the rest of your life. Most college students have credit cards, and many get into trouble by charging high balances that they can’t repay. Learning to save what you earn and being responsible about your purchases will help keep you out of debt. Some debt, like student loans, may be unavoidable, but by saving now instead of spending at the mall, you can minimize what you’ll owe later. The earlier you start saving, the more you’ll have when you need to make an important purchase.
