I need to move out at 18 and I am currently 16. I have a little over 5k saved up, so what should I do with that money so that at 18 I have enough to move out? I’m in an expensive city, so I’ll need enough to be in university while having my own apartment. I can’t have my parents set up anything regarding money, by the way. Also, they won’t provide me any financial support.
What should I do with my money so I can move out at 18? And how much money should I save up to move out at 18 in a big city?
byu/Any-Vehicle969 inpersonalfinance
Posted by Any-Vehicle969
3 Comments
The answer probably isn’t only what you can save up but what you’ll be earning while going to school. I don’t know your situation, but it sounds like if you have $5K now and no financial support, it will be very challenging to save enough up front to live a whole year on your own by the time you reach 18. Working is going to be something that will likely have to happen in parallel to keep the money coming in.
Are you in the US? What is rent where you’re at? How many roommates will you split it with? What does university cost and is a dorm room and food plan a solution? How will you pay for study materials like the textbooks/electronic books? Do you have a computer?
Where I live (a large, but not huge city in the US), a one-bedroom apartment can set you back $1600/mon, and higher near the school. That doesn’t even include all the utilities, much less food, clothes, transportation, cell phone plan, or the occasional date or discretionary money.
If you have roommates, that can cut the rent to half or a third but you have to maybe put up with people who don’t necessarily do things like you might. If you’re in any major city in the US, having “your own apartment” (without roommates) is difficult even with a full time job, much less while going to school.
University tuition, without scholarships can be wildly different from one to the next. Our local state university says it costs $8K a year tuition for state residents and $30K total for estimated costs including housing, personal expenses and on-campus living.
Look, I’m not saying this to discourage or scare you. There are just a lot of unknowns, and unknowns are way scarier than getting some numbers together. We can’t do that for you, and any guesses could be wildly off for your city and school, especially based on the limited information you’ve shared. Also, we don’t have local information and contacts at the university like your high school counselor or other local professionals who help kids make the transition to college. They do this for hundreds of students, so they know more than most anyone who can guess on Reddit.
I’d start by looking up how to create a budget, looking up some rents, tuition, talk to a guidance counselor at your high school and admissions at the university you’re considering, look for student loans, scholarships, grants. Of course, you also have to have a scholastic record sufficient to be accepted by the university and if you’re not, you may have to find another university that will accept you.
Unfortunately $5k most likely won’t even be enough to pay the application fee plus first and last month’s rent plus the security deposit for an apartment in a big city. Not to mention, how are you going to earn enough money to pay the bills there while you’re a student?
If you’re planning to attend university in the same city where your family currently lives, the most financially sound option is to stay living at home while you go to school.
How are you planning to pay for tuition, books, etc? I hope you’re already looking into scholarships. Student loans suck to have to pay back, but will probably be necessary if you don’t have other financial support. They can be used to pay for living in a dorm & getting a meal plan at the university. That’ll be your best bet instead of an expensive apartment
Don’t invest money u’ll need in 2 years, keep it liquid in a high-yield savings account. Your goal isn’t growth right now, it’s flexibility.
In a big city, try to have 6–12 months of living expenses + first month’s rent + security deposit + emergency fund before moving. Realistically, living alone at 18 in an expensive city while in university is tough, so roommates, student housing, and part-time work can make a huge difference.