How to Manage Your Summer Earnings

If you’re heading off to college in the fall, you’re going to need spending money. It is very common for students to earn their spending money for the school year during the summer and budget out their savings for each semester. However, once you start earning money at your summer job, it can also be very tempting to spend it.

Make Saving for College a Priority
To ensure that you will have enough to get yourself through the semester, you should make your college savings a priority. One of the best ways to do this is to figure out how much you think you will need each semester at college. While you might be able to get a part-time job while in school or participate in a work-study program, ideally you will also be able to rely on your summer earnings throughout the year. This means that you should ideally hold onto as much of your paycheck as possible.

Tips for Holding Onto More of Your Money

You work hard for your money, so you need to make sure it doesn’t disappear as a result of poor decisions. Even if you’ve gotten your college savings in order, you can still limit frivolous and small purchases to make your earnings go even further and work better for you. Here are a few additional daily tips to keep more of your money:

• Bring your lunch: If you have a full-time seasonal job, you should bring your lunch with you to work every day to save money. While grabbing a quick bite from a nearby grocery store or restaurant can be delicious, you are quickly wasting your summer earnings on a single meal. Instead of throwing a few dollars into the vending machine, save your money and bring food from home.
• Live at home: The summer before college is one of your last opportunities to hang out with your high school friends. There are many reasons to live at home during the summer rather than working at a boarding camp or staying elsewhere. Most importantly, perhaps, is how much you will save without paying rent and getting food from home.

Savvy Shopping
With warm weather and many outdoor activities to do, it can be very tempting to head to the mall to buy a new bathing suit or splurge at summer festivals or amusement parks. However, the best way to manage your summer earnings is by shopping carefully and making smart decisions that will help make your money last longer. While you will no doubt spend money throughout the summer to buy necessities and do fun things with your friends, here are a few ways to ensure that you don’t go overboard:

• Spending Plan: While you might not think you need one, creating a spending plan to help you budget is a great way to eliminate overspending. What you spend in one month should never exceed your monthly income, and if you are trying to save for college, you will need a budget to allocate even smaller amounts for spending. Stay within your spending limits when you shop so you don’t overspend and throw your plans off track.
• Comparison shopping: When you do need to buy new items, whether it be clothes, shoes or anything else, you should compare prices between retailers to find the best deal and save yourself a few bucks. Most stores have a retail website, making it easy to check prices against one another and find the best deal.
• Be thrifty: Another great way to save money when you shop is to check out local thrift shops or consignment stores for unique finds. You can find stylish clothes and other items at a much lower price than buying new.
• Forego foodie status: Going out to dinner with your friends is one of the most fun ways to socialize. However, going to restaurants too frequently can wreak havoc on your budget. When it comes to your food spending, keep eating out to a minimum and consider cooking a meal at home with friends instead. You will save money and still enjoy being together.

The information contained in this article does not constitute financial, legal or tax advice and its authors make no claims about its accuracy or completeness. The authors of this article do not hold themselves out as providing any legal, tax, financial or other advice and do not make any recommendations or endorsements as to any investment, financial plan or any other product or services. The materials contained in this article do not constitute advice and you should not rely on any material in this article to make, or refrain from making, any decision. As laws and regulations change frequently, we cannot guarantee that the information contained in this article is current or applicable to your specific circumstances. Laws and regulations may vary from jurisdiction to jurisdiction. Legal, tax and financial advice must always be tailored to your specific circumstances and nothing in this article should be viewed as a substitute for the advice of competent legal, tax or financial advisors.