Summer Savings: How To Spend AND Save

It’s almost here! The end of the term! Time to relax, right? Well, sort of.

Chances are you’ve got a summer job lined up for shortly after the end of the term. If you don’t yet have a summer job, don’t wait too long – they go quickly.

One thing that’s great about a summer job is that while it provides you with some extra spending money, it also provides you with an opportunity to start saving money.

Every little bit counts

Dollar/cost averaging is the answer. Even small amounts add up, especially if you make saving a regular habit. This is something you can add to your monthly budget (yes, you need one year-round). If it’s in your budget it will make it easier to know where the gaps are, if any, for the time September rolls around and you have tuition to pay.

There are huge advantages to saving money while you enjoy your summer break off-campus – next year at school won’t be quite as difficult to get through as you might have found it to be this year (first year is often tougher on your wallet as you leave home for the first time).

So what’s the best, easiest way?

  • Depending on your employer, you may have the option to have money come right off your paycheque and placed in a savings vehicle. When it comes right off your paycheque, you won’t even miss it.
  • If you work in a restaurant or bar (best summer jobs ever), save your tips! They add up very, very quickly and you’ll be set for fall semester.
  • If this isn’t an option, then set up an automatic transfer of funds to a high-interest savings account or investment when your pay is deposited in your account.”Every two weeks, take $50 from my account and move it to this savings.”

The adage “pay yourself first” is the secret to savings success. Take the time to meet with a Financial Advisor to select the savings or investment account that best suits your needs and savings goals.

Happy Summer and Happy Saving!