Freedom 18 Reflection

Freedom 18 Reflection

As I went over the freedom 18 worksheet with my parents, we decided that the income I would be making would probably be a little less because I budgeted for two jobs and they told me it is most likely unrealistic to have two jobs along with going to school. They did however, remind me that since I have a job now I am putting money away for expenses such as schooling. My mom and I decided together that an average phone bill would possibly be more than what I budgeted for in the future because I would have a newer phone by the time I’m 18 and I won’t be on a family package I would be by myself. My parent’s already know that I will be living at home with them while I’m going to school and there are certain “needs” and “wants” I will be paying for, such as my phone bill, cosmetics, clothing, eating out, etc. They will however be paying for groceries and I do not have to pay rent as long as I am in school. Speaking of school I learnt that my Grandpa has RESP’s put aside for my sisters and I for school so that will be helpful along with scholarships that I will have to apply for. My parent’s said that they actually can help me out a little bit with schooling but I have to work and pay for majority, even if that means getting a student loan. When I am 18 I am hoping to be able to continue putting money into savings and I decided at least $50 a month off of my pay cheque if that is possible. After going over and changing the freedom 18 worksheet I learnt that I will have a deficit because of schooling, but I depending on how much I have in my savings account and the career I will get after post secondary school I will be able to pay that debt off and hopefully in the long run have a surplus after each month of payments. One tip that my Mom brought up a lot in our talk was the importance of budgeting when you are going out, she explained how she has a budget for groceries, eating out, vacation money, and also Christmas presents even. This also is an example of living within your means, my family doesn’t go out and buy whatever we want and go on vacations all the time because then we would be living outside of our means. The importance of budgeting is super important for me to learn now because when I get a pay cheque I just want to go to the mall but I have been putting most of the money I make into my savings account and only take out a little bit and put it into my checking account for spending. When I talked to my Mom about when she went to school after high school I learnt that we have similar expenses to pay for, my mom payed for her own car, schooling, and wedding all by herself and my parents have that same mind set for my sisters and I, meaning we have to pay for travel, schooling, car payments and clothes. Some differences I found was my parents never had to pay for phones, internet, and also my mom didn’t go out and buy clothes and food randomly. She told me the biggest thing for me in the future will be paying for school and getting a house once that time comes, because they housing market has changed drastically since my parents bought their first house together. Overall, everything we have learnt in the finance unit has taught me the importance in saving the money I am making now and distinguishing my needs from my wants so I do have that extra money when something important comes up.