The end of the semester is drawing near, and as this year at Longwood is drawing to a close, a new part of the year begins. Summertime brings new financial goals and challenges, along with unpredictability. We would like to share with you what to look out for over the next couple of months, along with some of our financial advice for the summertime as well.
Here are some things to look out for in the financial marketplace as the summer rolls around:
Oil Prices – Oil has been a hot topic over the past few months. Oil prices have been dropping over the last couple months, but the big question on everybody’s mind is, “Is this the bottom?” This drop in prices has been influential over some stocks such as Haliburton and other oil companies. Question is, if prices are to go up soon over the summer, would now be the time to buy? Oil prices have historically gone up during the summer months, so it begs the question whether or not history will repeat itself this summer.
The Dollar – This year the dollar has gained a lot of strength. This will be something to watch over the summer as well. The value of the dollar can affect not only individuals, but corporations as well. Domestic businesses that engage in international trade open themselves up to exchange rate risk and the value of the dollar has a big impact on firms who go international. When the value of the U.S. dollar rises, it allows for both businesses and individuals to seize the opportunity to buy a foreign good that usually would cost more for a cheaper price. With talks of interest rates potentially rising this summer, it would be smart to watch how the value of the dollar moves compared to foreign currencies over the next few months.
Financial advice for the summertime:
Saving- This is something that every college student should try to maximize during the summertime. If possible, try to find a job during the time you are away from school. There are 116 days during our summer break, which is adequate time to make some money and to save. If you were able to save just $10 per day, you would come back with $1160 at the start of the fall semester. If at all possible, I would suggest saving at least 20 percent of all your money earned, because the school year is long and money dwindles very quickly while at school.
If you made $10 an hour and worked 40 hour work weeks for the 15 weeks we are gone for summer, before taxes, you have the opportunity to make $6000 over the summer. Our suggestion is to put a designated amount into a savings account every time you get a paycheck, that way you can automatically put it away and not spend it until you return to school.
Creating a budget:
One way to keep being financially responsible during the semester is to create and stick to a budget. When creating a budget it’s good to map out all of your expenses ahead of time and then stick to what you laid out for yourself. So when you get back for next semester, sit down and plan out what you think you need to spend each week and match that to how much you saved over the summer. Once you have figured out how much you can spend each week, divide it between the categories of expenses you have such as groceries, gas ect. This is a great way to ensure you are not recklessly spending your hard earned savings on things that are unnecessary. The best advice we can give to you about budgeting is that you need to stick to it. It can be easy to create and stick to a budget for a couple weeks, but what will really make your money last is making sure you are being consistent throughout the semester!
Our concluding thoughts for the summer would be to be conscious and aware of what is going on in the economy and financial marketplace. There are a lot of things that are bound to happen over the next 116 days, so being aware of what is going on around you can help you best prepare for the future. Be sure to save and to start preparing for next year. For all you graduating seniors, we hope some of the articles we have written in our short time will be beneficial to you once you depart. Have a great summer Lancers, and can’t wait to see you all next year!
