Many parents say they are kicking their kids out at 18. I don't think that's right and I think it places young adults at a disadvantage. However, if that does happen to you, here are some next steps you can take.
Preparation
Get a copy of all of your important documents:
Prior to 18, your parent has to be on your minor bank account. So you may want to save your cash now, and
Start applying for Jobs
DC Minimum Wage is $17 - $18 per hour. Maryland Minimum Wage is $15 an hour. Virginia Minimum wage is $12.77 per hour
Look for jobs that are are walking distance to where you are to limit your transportation costs.
Look for jobs in Washington, DC since you receive a higher pay in DC.
Realistically while in school you may only work part time: 10 - 20 hours a week
However, you can work more hours after you graduate high school. 40+ hours a week
After you graduate, you want to prioritize jobs that pay more and more each year and that allow you to work as many hours as possible.
Budgeting while working minimum wage:
$18 an hour times 40 hours a week = $720 a week. Multiply by 4 weeks in a month means you have $2,880 a month. Assuming you pay 30% in taxes, means your take home pay is around $2,000 a month.
50-30-20 rule
50% for Needs
30% or Wants
Eating out, entertainment, hobbies, travel
20% for Savings, Building emergency fund, and Investing
Your Emergency fund should be equal to all of our monthly expenses times 6. This is called a 6 months emergency fund. Once you build this up, don't touch it. This way if you lose your job, you can survive for 6 months while you search for a new job.
50% for Needs (Housing, utilities, groceries, transportation to and from work/school, college tuition)
Housing
If you have a place to stay for free, then still save 50% of your paycheck for your future housing costs. That way you have money to pay your move in fees and rent when you do move out.
Rent a Room that is furnished and has utilities included (gas, water, electricity, and wifi).
Find room rentals on Zillow Room Rentals or JuneHomes.com. Sort by the lowest price to the highest price. Other sites to search are Roomies.com or Hotpads.com or FurnishedFinder.com
Live Minimally. You don't need a lot of "stuff" while you are building your life. Choose to intentionally own fewer things so that you can invest in your future.
All you need is the basics. Phone and Computer for work and school communication. Curated clothes that you can reware for work or school. Personal supplies. Most of your time will be spent on working, going to school, and savings. So you don't need a lot of stuff yet. Don't spend all your money on stuff or you will never get a head and be successful in life.
Groceries
You need to learn to cook so that you can save money. If you are always eating out at fast food spots and carryout spots, you are going to throw your money away $10-$15 at a time.
Basic Groceries: chicken, rice, vegetables, pasta, pasta sauce, oatmeal, fruit
Apply for Food Stamps / SNAP
These organizations provide Free groceries in Washington, DC
Other Resources and DC Benefits
Medical Assistance (Medicaid)
Colleges that are Super Affordable
DC Area Colleges
University of the District of Columbia
Link to Application: https://www.commonapp.org/explore/university-district-columbia
Average Tuition: About $9,000 a year = $750 a month
Link to UDC Tuition and Fees: https://www.udc.edu/admissions/tuition-fees
DC Minimum wage is $17.95/hour. So working 40 hours a week means you can make $718 a week or $2872 a month. After taxes, that may mean your monthly take home is around $2,000 a month. By either renting a room or sharing housing with someone else, you can greatly reduce your housing costs so that you can afford to pay for school.
Choose a college major that offers a high paying job after graduation:
2 year degree programs
Aviation Maintenance Technology
Construction Management
Education
Nursing
4 year degree programs
Accounting
Business Administration
Civil Engineering
Cybersecurity
Elementary Education
Special Education
Prince George's Community College
Link to Apply: https://www.pgcc.edu/hs/
Average Tuition: About $10,000 a year
Cost of Attendance: https://www.pgcc.edu/paying-for-college/tuition-and-costs/cost-of-attendance/
Apply for Colleges that will allow you cover your tuition as long work for that colleges
For these colleges you just need to work to save up for your flight, train ride, or bus to the college campus.
Berea College - in Kentucky
Link to Apply: https://admissions.berea.edu/apply/
Tuition Costs: Free https://www.berea.edu/
College of the Ozarks - in Missouri
Link to Apply: https://www.cofo.edu/Admissions/Apply
Tuition Costs: Free https://www.cofo.edu/Admissions/Cost-Financial-Aid
Williamson College of the Trades (PA)
Focuses on specialized trades
Carpentry
Electrical
Landscaping
Machine
Masonry
Power Plant
Link to Apply: https://williamson.edu/admissions/admission-to-williamson/#
Tuition Costs: Free https://williamson.edu/
At 18
Open up 2 bank accounts: a checking account and a savings account.
Here are some banks in DC that do not charge monthly maintenance fees.
Capital One 360 Checking: No monthly fees, no minimum balance requirement, and no overdraft fees.
DC Credit Union: Offers a free checking account with no minimum balance requirements and no monthly service charges.
M&T Bank (MyWay Banking): A checkless account with no monthly maintenance fees, designed to avoid overdraft penalties.
United Bank (United Essential Checking): No minimum balance requirements and no overdraft fees.
Your checking account is where your paystubs will be deposited to. You may also have a debit card for your checking account. You can add that debit card to apple pay.
Your savings account will allow you to save for different benchmarks and emergencies.
Savings is paying your future self first.
You should be saving 20-30% of all of the money that you receive (from gifts or paychecks)
Your 1st goal is to save: $1,000
2nd goal: Save $5,000
3rd goal: Save 3-6 months living expenses.
ex. If Rent costs $1500 a month, your car cost $200 a month, Electricity/Water/Heat/Wifi is $300 a month, Gas for car is $100 a month, Groceries are $300, and Phone is $80 a month, then your monthly living expenses is $2480 a month. That means you need to save 3 to 6 times that amount. That way if you lose your job, you can continue to pay for your monthly living expenses until you find a new job.
3 x $2480 = $7,440 (this will be your 3 month emergency savings)
6 x $2480 = $14,880 (this will be your 6 month emergency savings)
Don't tell anyone how much is in your emergency savings account. This is to protect your future self.
In order to be prepared for your future, you haved to protect your future self today.
Benchmarks to save for:
Move in costs for a new Rental (Security deposit, 1st months rent, and last months rent)
Down payment to purchase a House in the future
Vacation
Emergencies to save for:
Car Repair
Home Repair
Personal Injuries
Hospital Expenses
Family emergencies
Housing