Before you move out, make these 5 money moves
Homeless teens in America make up 40% of homeless youth. If you’re a queer teen, you need serious money prep ASAP. Here are our five best money moves to make when you’re gay and 18.
My money moves at 18 and life
I was raised a J-dub (Jehovah’s Witness). Everything I learned about being gay was terrible – horrible. This created an internal conflict because I knew as early as 9 years old that I was exactly who my father and minister hated.
I knew what to expect when I told my parents I was gay. They’d kick me out of the house, and I’d likely never see them again.
My crystal ball didn’t lie.
When the day came, not only was I scared to lose my family, I was scared of how I’d take care of myself physically, emotionally, and financially. In a flash, I’d be alone.
Being raised to believe that ‘the church’ was my caretaker from cradle to grave, I didn’t prepare for what would happen after I said, “Mom, Dad, I’m gay.”
Whether we jump out or are pushed out of the nest, many queer kids and young adults find themselves in similar financial situations with similar fears.
Below is what I know about preparing to move out when you’re gay and 18.
5 money moves to make when you turn 18
1. Open a free online checking account
A recent survey showed that a whopping 50% of queer respondents claimed they didn’t have a single bank account. That means we’re spending more money on everyday transactions than we should.
What do we suggest? Open a free online checking out.
Online banks let you open accounts nearly anywhere on your phone, laptop, or tablet in about 5 minutes. This is great because you can keep your account away from the eyes of non-supportive parents or family members.
3. Start investing money by investing your spare change
I wish I had learned more about investing when I was younger. It’s one of the most innovative money moves for everyone.
Here’s the deal: no one gets rich without learning how to make their money work for them, i.e., investing. That’s investing in stocks, a business, or real estate. Had I learned and started earlier, I’d have much more money today.
Learn from my mistake.
The key to investing is starting early, but where should you start? Start simple.
4. Build credit fast
A good credit score will save you thousands if not tens of thousands of dollars on credit cards over your lifetime with loans, mortgages, apartment rentals, cell phone plans, and jobs.
Knowing what makes up a credit score is critical in today’s world. A couple of bad moves and, oops!, you’re spending several expensive years in credit score recovery.
5. Get a part-time job (or 2) and a side hustle
If you had to leave home immediately, wouldn’t having some cash to cover your expenses be nice?
That’s the power of a safety net, and the only way to build a safety net is with a job or with jobs.
It’s also crucial for queer people to have part-time jobs and side hustles, ways to earn extra money, should we lose one job or be denied housing or services because we’re queer.
Where to find work?
Thanks to the internet, phone apps, and an evolution in thinking, it’s never been easier to find enough part-time work online to build a full-time business.
For more information on money-smart moves to make if you’re gay and 18, listen to this Queer Money® podcast.
5 Money Moves for Gay Teens on Queer Money®:
How to move out at 18 and afford it
1. Live below your means
One of the biggest mistakes I made when I was younger was spending my money as soon as I got it and then spending more.
No one gets rich spending more money than they make.
The best way to ensure you have money to invest after paying your bills is by living below your means, spending less than you earn.
It sounds old-fashioned, but it’s critical to getting and staying out of debt and achieving independence.
How do you live below your means?
Have systems:
- Know what it is you truly want. So often, too many of us don’t know what our fabulous life looks like. We see what others want for us. We know what we think we’re supposed to like. We often don’t know what we want.
- Then, identify the current habits that prevent you from creating this fabulous life for yourself, and figure out what you must do to overcome those habits.
- Next, implement daily exercises that create the energy to attract your fabulous life. Center yourself. Focus yourself. Give yourself space to tap into your instincts.
- Finally, create a lifestyle, both work and play, that supports building your fabulous life. Be intentional about the places you go, the people you’re with, and the things you do. Make sure they all align with your amazing life.
Had I known how to manage my money like this when I was younger, I would’ve had a lot more money when I was younger – and now.
2. Start a budget
A budget is key to not living paycheck-to-paycheck and having more money left over each month’s end.
Find a budgeting app that works for you
3. Differentiate your needs from your wants
Needs are reasonably priced food, clothing, and shelter bought in modest amounts. If your goal is to break free from the Bank of Mom & Dad, you don’t have time to spend money beyond what’s reasonable.
It’s hard to believe it now, but it’ll be easier to sacrifice today than tomorrow.
4. Keep an eye out for lifestyle creep
It’s a sneaky little bitch, lifestyle creep. Lifestyle creep happens so slowly you don’t notice it until it’s too late. Suddenly, your standard of living’s higher than you realized. The types and brands you buy are slightly better.
When this starts to happen, you blow whatever budget you had. The only way to rein it in is by checking and re-checking your budget. A budget isn’t a once in a while thing, it’s always.
Awareness of lifestyle creep and budgeting is the best way to avoid it.
How to move out at 18 with no money
This’ll sound redundant, but your options are limited when you have no money. That’s why save money before leaving mom and dad’s nest as best as you can.
If that’s not an option, then . . .
1. Know your game plan
Moving out alone for the first time with no money should only be done with a rock-solid game plan. You’ll want to know:
- What are you taking with you?
- Clothing for the current and next season, at least, laptop, phone, etc.
- What, if anything, can you afford?
- Cell phone, food, transportation, etc.
- Where you’re resting your head at night
- A friend or family member’s sofa, shelter, van, hostel – ideally one that permits volunteer work in place of rent
- Who, if anyone, will be living with you, or helping to pay rent?
- A friend, partner, or someone else
Finally, you’ll also want to have your resume updated and a plan to get a job if you don’t already have one, which leads to our next point.
2. Get a job
The personal and financial independence that comes with a steady job income can’t be beaten. Yes, that’s sometimes easier said than done.
That’s why some people have multiple jobs and why jobs in the gig economy are so popular now.
3. Open a free checking and a free savings account
You may not have money now, but you will. Getting these accounts opened ASAP will make life so much easier.
4. Brush up on your personal finance knowledge
It sounds self-serving, but you’ll do better with your money as you understand how money works. Between libraries and the internet, there are a lot of free resources out there.
How to move out at 18 and go to college
If you want to go to college, you’ll need money. But the more you avoid student loan debt, the better.
With no money, you might think you have no options. Yes, your options are limited, but they exist.
How to make money for college
1. Essay contests
There are tons of essay contests on all sorts of topics that award winners $500 to $70,000 (and more). Go to www.petersons.com and www.scholarships.com to speed up your search for essays.
2. Employer reimbursement
Many employers offer tuition reimbursement benefits, meaning they’ll help pay for school while you work. These employers include UPS, Apple, Google, ADP, Starbucks, and Home Depot.
All these companies are LGBTQ-friendly, with several earning a perfect score on the Human Rights Campaign’s Corporate Equality Index.
3. Join the military
If you’re up for the challenge, the military’s a great place to get your tuition paid for and learn skills, which is great for when your service is over. You have four options:
- Armed Forces Tuition Assistance – The specifics (including eligibility, required years of service, application process, and restrictions) vary from branch to branch, Army, Navy, Air Force, Marines, Reserves, and National Guard. Tuition assistance grants up to $4,500 annually for tuition and fees.
- Post 9/11 GI Bill – Any military member who serves more than 90 days of active duty after September 11, 2001, can qualify to have 40% to 100% of tuition and fees reimbursed for an in-state public college or university or up to $17,500 at a private or foreign university.
- ROTC – With this program, you simultaneously prepare for military service and go to college. After graduation, you’ll serve in the Army, Navy, Air Force, or Marines.
- State-Specific National Guard Tuition Assistance – In addition to the National Guard’s offering of tuition assistance, each state offers tuition assistance for its National Guard Service Members. Attending college or university in a particular state can cover up to 100% of tuition and fees.
How to save money for college
If you’re gonna do it, do it right. Here are the tools to help save money for college.
- 529 Pre-Paid Tuition Plans are state plans that lock in future tuition rates at today’s prices. You’re buying tuition shares for a semester in the future in today’s dollars. This is best for in-state schools and has little effect on qualifying for financial aid.
- 529 Savings Plans are also state plans. Maximum annual contributions range from $230,000 to $310,000, which is probably not an issue. Your investment earnings won’t be federally taxed and are typically not taxed by the state offering the plan. 529 Savings Plans affect financial aid qualification, but, again, likely not a concern.
- Advanced Placement Courses are introductory, college-level courses, such as English and math, offered to high school students and accredited by the College Board. APCs often carry over into the first year of college and save time and money. But you do need to qualify for them, and you must earn a 3 (qualified), 4 (well-qualified), or 5 (exceptionally well-qualified) on the final exams to count towards college credits.
Scholarships for gay students
Colleges want a diverse student body, and many organizations make sure LGBTQ students are included. Find one or more scholarships that could work for you:
- Bill Caspare Memorial Fund Diversity Scholarship – Available to full-time junior and senior students who are African American, Asian American, Hispanic American, Native American, multiracial, or part of the LGBTQ community, and students interested in new media, digital advertising, and data science, and have a minimum 3.25 GPA.
- CFPCA LGBT Endowed Scholarship – Wayne State University’s College of Fine, Performing and Communication Arts Lesbian, Gay, Bisexual, and Transgender (LGBT) Endowed Scholarship gives financial aid to meritorious students who demonstrate a positive sensitivity to and involvement in LGBT (lesbian, gay, bisexual, and transgender) issues. Preference is given to LGBTQ students.
- eQuality Scholarship – eQuality Scholarship Collaborative gives scholarships for post-secondary education at accredited institutions, primarily to northern and central California residents or students who go to school in north or central California.
- Freedom from Religion Foundation Catherine Fahringer Memorial Award – A cash scholarship for freethinking high school students, defined as those who identify as atheist, agnostic, humanist, or secular and who are accepted into 2- or 4-year colleges.
- IES Merit-Based David Porter Diversity Scholarship – This scholarship is available to any student at institutions who is a member or associate member of the IES college consortium and a member of a community traditionally underrepresented in study abroad programs, such as being LGBTQ. A minimum of a 3.3 GPA is required.
- Levin-Goffe Scholarship for LGBTQI Immigrants – For undergraduate students who are both LGBTQ or intersex and undocumented immigrants, including refugees and individuals seeking or granted asylum.
- PFLAG – As of 2018, the national PFLAG (Parents and Friends of Lesbians and Gays) is on hiatus, but PFLAG chapters across the country offer local scholarships. There’s possibly one in your area.
- Point Foundation Scholarships – The Point Foundation’s Scholarship are awarded to out LGBTQ people with a track record of leadership and community involvement, a substantial academic achievement, been working for the betterment of the LGBTQ community, in need of financial aid and enrolled or intending to enroll in an accredited college or university in the U.S.
- Pride Foundation Scholarships – Pride Foundation provides essential financial resources and community support to inspirational LGBTQ+ and allied student leaders across the Northwest.
There’s a lot to consider when leaving mom and dad’s home when you’re gay and 18. Please do yourself a favor and make a plan using some (or all) of my tips above. Having been there, I know what it takes to make the transition easier.
There are resources. Use them.