With end of year exams about to start, Year 12 students across the country will be considering what the future holds, whether that be progressing to university, joining the workforce or taking a gap year.
Whatever pathway students ultimately take, it is important for them to have a solid foundation of savings to help them make the transition out of school life into adulthood.
Fortunately, it’s never too late (or early!) for young people to start looking at their personal finances and budgeting for the future, whether they’re about to sit down to tackle their final exams or if they’re at the other end of the education spectrum with primary and secondary school still ahead of them.
For secondary students in particular though, a key question to ask is: what can you do today to start saving for life after school?
Paid employment is an obvious way to save money, but it’s important to remember that if you don’t prioritise putting a certain amount away in your savings account each pay day, there’s a good chance you won’t have enough funds when the time comes to buy your first car or jet off around the world on a gap year trip.
To that end, why not create a simple budget and challenge yourself to live like a frugal backpacker for a certain period to see how much you can save in a LLL Savings Account that pays you interest?
If your employment is sporadic though, or if you don’t have a paid job at all, there are other ways to save money for your future dreams.
Did Great Aunt Beryl gift you some cash for your birthday? How about popping it in your interest earning savings account and let it accrue some interest along with any other birthday money you may have received? Don’t worry, it will add up quickly. For example, if you save $50 each birthday from the age of 10, you’ll have $400 (plus interest!) by the time you leave Year 12.
Also, try and save your chore or pocket money by putting at least half of it away for your big ticket goal.
Earn from what you have:
- Recycle cans and bottles. If you live in SA, QLD, NSW, NT or ACT (or WA from June 2020) you can collect and return bottles and cans to earn an income. Simply collect bottles and cans marked with the 10c deposit label and return the empty containers to a recycling depot for 10c per container.
- Tutor or coaching. Why not rent your knowledge or skills to younger students in the form of tutoring or coaching a sport? Mentoring is a great way to give back to your school’s community whilst making an income.
- Sell old unused clothes, uniforms, toys and devices. A teenager’s bedroom may be a treasure trove of unused items of value. Declutter and sell disused items on Facebook Marketplace, Gumtree or eBay … you could literally be sitting on a gold mine!
- Got something of value? You could set up a peer to peer renting system, such as renting out your formal dress or shoes around school formal time. Or sporting equipment that you aren’t looking to use for the upcoming season.
- Got something to say? If you have a passion and a wealth of knowledge on a topic, you could start writing your own blog or filming your own vlog to generate a passive income. There is plenty of information on Google about setting up a passive income like this.
Remember, whatever you can save as a teenager is a bonus in the long term. And if you are able to save money in a savings account that pays you interest, like an LLL Savings Account, by the time you are sitting your final Year 12 exam, you’ll hopefully already have some money behind you to help you embark on life after school.
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Visit the ASIC website for tips and tricks for preparing a budget.
This advice is general in nature and does not take into account your personal situation, needs or objectives. Please consider the Disclosure Documents to decide if this product is right for you.