During their school break, students can take advantage of summer jobs to make money, acquire practical work skills, and develop financial literacy. Having a summer job or internship can assist students in achieving financial targets like paying tuition fees.
With the impact of inflation on consumer budgets and summer travel plans, it is important to save money during the summer months. According to a recent survey, 62% of those unable to afford a summer vacation this year have cited increased prices as the reason for it.
They can ensure financial freedom and avoid disruptions to their summer plans by developing savings strategies and keeping these tips in mind. This will help them make progress toward their financial goals while still having fun.
1. Set clear financial goals
It is important to establish your financial goals early on so you have a clear idea of what you’re saving for. To make them more achievable, you can break them down into smaller milestones and set specific targets, such as how much money you want to save by the end of summer. Some examples of goals you could save for between school years include textbooks, tuition fees, a summer trip, and an emergency fund.
2. Create a summer budget
To manage your finances efficiently and save money, it’s important to create a budget for the summer. You should list all the expected expenses for the season, such as housing, utilities, transportation, food, and entertainment.
Have you considered adjusting your budget for seasonal changes? For instance, you may need to increase your budget for electricity bills during the summer months due to air conditioning, and you may also want to factor in any summer weddings or trips.
3. Take advantage of low-cost summer activities
During summer, you may consider cutting down on your activities thanks to the warm weather. You could try out some of these ideas: having picnics or barbecues in the park, taking a hike or bike ride in nature, going to the beach, or attending outdoor community events and festivals.
4. Lower transportation costs
To save on commuting expenses, try using different modes of transportation. With the warmer weather, walking or biking could be viable options for nearby locations. Buying public transportation tickets or sharing rides with friends can also help cut down on commuting costs.
5. Cook your own meals
Summer break is the perfect time to improve your cooking skills and save money by cooking at home instead of eating out or ordering in. This will also help make healthier choices. Use seasonal ingredients to experiment with budget-friendly and nutritious recipes. You can also save money by packing your own lunch for work or summer classes instead of buying expensive meals at a cafeteria or restaurant.
6. Find summer discounts for students
During summer, students can enjoy discounts at various businesses. Clothing stores, digital retailers, and online platforms often have student discounts. Students can also check out local gyms for discounted summer membership rates.
7. Minimize energy use
To save on your monthly utility bills, try these small steps: Use natural light when possible and turn off your air conditioning when you’re not home. Unplug electronic devices when they’re not being used, shorten shower time, and clean your air conditioning units to make them more efficient.
8. Automate your savings
If you automate your savings, it means you set up a system that helps you save money regularly without needing a reminder or getting tempted to spend it. You can use a mobile banking app that has automated saving tools or download a third-party savings app and link it to your bank accounts.
You can use an automated saving tool to regularly transfer a fixed amount or percentage of your paycheck directly to your savings account. Another option is to schedule automatic transfers of a specific amount at regular intervals, such as every two weeks or once a month.
9. Open a high-yield savings account
Have you checked the interest rates of your savings account recently? You might be able to earn more money by finding an account with a higher annual percentage yield (APY), even if you already have a savings account. This could be especially helpful if you’ve saved money from a summer job.
Consider checking out top-yielding savings accounts to determine if your current account provides a competitive return. A lot of these accounts are available online, provide easy access via your phone, and don’t come with a monthly fee. Switching to a high-yield account can boost your earnings.
Bottom line
As a student working during the summer, you can boost your earnings by planning carefully and making smart choices. You can try to find ways to cut down on expenses, and also explore options like opening a high-yield savings account or using digital banking tools to make the most of your savings. To ensure you stay on track, it’s crucial to set long-term goals and create a budget.