My weekly spending
Living at home keeps this Sydney-based student’s living overheads low. Here is a snapshot of her day-to-day spending over the course of a typical week.
Monday: $0
I like to start my week by treating myself to an iced matcha at my local cafe. It’s normally $6.50 but I was up to my freebie on my loyalty card, so I didn’t pay a cent. I still live at home so my parents usually cook dinner. Tonight was vegetable lasagne and salad which was super tasty - and free!
Tuesday: $9.80
I’m trying to get into the habit of making my own coffee at home, but I bought sushi for lunch on the way to the library - I’m studying for a Bachelor of Arts degree.
Wednesday: $41
I order another iced matcha ($6.50) and a cheese toastie ($4.50) as a snack before hitting up Brandy Melville to buy a $30 shirt for my friend’s birthday.
Thursday: $33
My afternoon Westfield mission for (parent-funded) art supplies goes off-track when I buy myself a cute pair of gold earrings for $25 (they were on sale). I grab a bubble tea ($8) from Chatime on the way home.
Friday: $58
My friends and I usually hang out at the local pool hall on a Friday night where we take turns paying the hourly fee. This week it’s my turn, and after I pay $40 for a two-hour slot, my Betty’s Burgers meal ($18) wipes me out.
Saturday: $0
I’m working on an art project at home so it’s a pretty low-key day. I don’t spend anything, which feels like a relief.
Sunday: $20
It’s my friend’s birthday picnic and we’ve all been assigned with contributing to food. I do a supermarket run on the way and pick up a couple of dips, crackers and a packet of Tim Tams for about $20. I probably should have spent a little less.
Total spend: $161.80
The expert view: Set limits and build a buffer
Fortunately, Karen Eley, certified money coach at Women Talking Finance, has a roadmap to turn this student’s gap-year dreams into reality without sacrificing her daily cafe joys. To start, Eley says she should recognise that banking 50 per cent of her earnings via her parents is a great safety net.
The next step from here would be to begin taking the savings guidance from her parents and running with it. “It would be beneficial to start your own saving discipline rather than relying on your parents,” says Eley.
To build that independence, Eley recommends opening a separate account and automating a $20 weekly transfer, effortlessly banking $1,000 over the year. “Creating the habit of saving early sets you up for financial success,” Eley says. “And it gives you a vital buffer for gap-year emergencies.”
Next, it's worth setting a budget to cap her spending on luxuries like jewellery and clothes. “Setting a guilt-free spending amount may be useful,” Eley advises. But the rule for that spending bucket is absolute: “When it’s gone, it’s gone.”
