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BUSINESS Thursday 12 sepTember 2019
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College students, make the most of your summer earnings

By LAURA MCMULLEN es may include a car and a
Associated Press professional wardrobe.
What you do with your pay- To get a sense of how
checks in college can af- much to save, Lowry rec-
fect your financial life long ommends researching the
after you toss your gradua- cost of living wherever you
tion cap. By saving money plan to live. (Make an edu-
and repaying debt now, cated guess if you’re not
you’re doing Future You a sure yet.)
huge favor. SPEND A BIT ON YOURSELF
Of course, you need to Saving is important, but so
take care of Present You, is living life. As Lowry puts
too. Set aside what you’ve it: “Money is a tool that’s
budgeted for this year’s ex- meant to be used, and you
penses that aren’t covered can’t constantly focus on
by financial aid or fam- the future.”
ily contributions. And give You’re about as free as
yourself a high-five for mak- you’re ever going to be if
ing money in the first place. you don’t have kids, pets,
If you have money left over mortgage payments or a
or come into extra cash salaried job. So Ballou sug-
— thanks for the birthday gests using this time and
check, Grandma! — here some of your earnings to
are a few ideas of what to travel.
do next. Keep in mind that In this April 9, 2019, file photo, pedestrians walk on the campus at Stanford University in Stanford, “You’ll never ever get an
everyone’s financial situa- Calif. employer who will tell you,
tion is different, so some tips Associated Press ‘You know what, I think you
may be more relevant to those savings — say, by interest debts, like those or a single lump sum after deserve a gap year,’” she
you than others. automatically transferring that may come from credit a fruitful summer gig, Lowry says.
BUILD AN EMERGENCY $10 a month to it from your cards or personal loans. says. Certified financial planner
FUND checking account — you’ll You’ll save money on inter- START SAVING FOR POST- Marguerita Cheng recom-
Stash some of your earn- still be in better shape than est, and you’ll be headed COLLEGE LIFE mends using or saving up
ings in a high-yield savings if you had no fund at all. toward a healthier credit If you’re contributing to an extra earnings for experi-
account that should be Without an emergency score. Plus, as Ballou puts it, emergency fund and still ences, rather than things.
tapped only to cover unex- fund, you’d likely have to you don’t want to start your have money to save, keep “Instead of buying the lat-
pected expenses, like a car borrow money to cover adult life digging out of a it in a separate account. est and greatest iPhone ...
repair. (In a high-yield sav- curveballs, says Lynn Ballou, financial hole. These savings will be useful maybe you save that to
ings account, your money certified financial planner If you don’t have these after college. “When you go on a nice trip with your
will earn more interest than and senior vice president kinds of debts, consider be- graduate, you’ll probably friends after you gradu-
in a traditional account — and partner with EP Wealth ginning to pay off student need money immediately,” ate,” says Cheng, who is
and you’ll still be able to Advisors in Lafayette, Cali- loans if you’re able, says Lowry says. “There’s a lot of the CEO of Blue Ocean
easily withdraw or transfer fornia. “Those who end up Erin Lowry , author of “Broke adult things that you sud- Global Wealth in Gaithers-
money when you have to in financial trouble at what- Millennial: Stop Scraping denly have to do.” burg, Maryland.
pay for that new transmis- ever point in life are those By and Get Your Financial For housing alone, these If traveling is too expen-
sion.) that have no emergency Life Together.” As long as “adult things” could be sive for you, spend some
If you’ve earned a lot and savings,” she says. you’re enrolled in school, paying a security deposit of your income on going
can drop $500 into the PAY DOWN HIGH-INTEREST there’s no penalty for start- and first month’s rent, and out with friends, Lowry says,
account, you’re off to a DEBT ing to pay your loans and perhaps a moving truck, and otherwise “investing in
solid start. Or if it’s more Pay some of your extra then stopping. So it’s OK to renters insurance, furniture the experiences of being in
realistic to gradually build earnings toward high- pay a little bit every month and utilities. Other expens- college.”q