As high school graduation seasons come and go, many graduates head straight to college. However, a smaller group opts for financially savvy decisions like taking a gap year. While gap years are quite typical for recent high school graduates in various nations, their popularity and acceptance are growing in the United States. Both students and colleges are starting to see the advantages: time for personal and intellectual growth, financial preparations, and more.
What exactly is a gap year?
The Gap Year Association describes it as a period of experiential learning, usually taken after high school and before embarking on a career or higher education. It’s a period for boosting one’s practical, professional, and personal understanding. Some students choose to take it mid-way through their degree.
During this time, students often travel, work, volunteer, and figure out their academic interests before entering college. It also provides an occasion to better grasp their finances.
Why take a gap year?
The idea of a gap year may cause apprehension for some parents, but it carries numerous benefits.
1. A chance to rest and recharge: Following years of academic stress, some students require a breather before diving into their next big venture.
2. Discovery window: A gap year can present an opportunity for students unsure of their path to explore their interests and plan future actions.
3. Exploration of passions: Those keen on specific sectors or job roles can spend their gap year interning, pursuing fellowships or researching their desired career.
4. Independence development: A gap year helps young adults grow more self-sufficient, manage finances better, and potentially live or work in new places.
Nine moves for financial savvy during your gap year:
If you’re contemplating taking a gap year, wondering how much to save, and how this period could impact your finances, here are nine tips:
1. Set Goals: Transitioning from high school demands balance. Use your time usefully by setting meaningful goals while also relaxing and rejuvenating.
2. Earn Money: Attending college can be expensive, and working for a year might alleviate some financial burdens.
3. Set Up a Saving Account: This ensures you don’t mistakenly spend your hard-earned savings.
4. Be Prudent with Social Expenses: Be mindful of spending on social activities like partying, movies, concerts, and dining out. Opt for home-based entertainment instead.
5. Look for Free Money: Explore grants, scholarships, financial aid to alleviate financial stress during your gap year and future college period.
6. Start Investing: With the money you save, starting early investments can secure a healthy retirement.
7. Earn Extra Credit: A work or internship program related to your field of interest can provide useful experience for when you return to college.
8. Review Your College Plan: Consult a financial professional to review your college plan and discuss financial strategies during your gap year.
9. Explore Career Opportunities: A gap year presents an opportunity to explore various job roles.
So, are you considering a gap year? Or have you taken one? How did it prepare you financially for college?
