Economies of a gap year

As the end of high school draws near, many youth are faced with the problem of figuring out what is best for them in the coming year. Should they take a year's break (or 'gap year') from school, to make some money - or go straight on to college?

Some want to travel - but that takes funds. Each post-high school student has different aspirations and goals for a gap year, but finances are a large part of the equation.

Job openings

Getting a job is not all that difficult, with the current low unemployment levels; but income is still likely to be around minimum wage - which differs province to province, ranging from around $7/hour to $8.50/hour.

Having money in one's pocket usually translates to a higher standard of living, with the sudden ability to afford clothes, accessories, electronics, restaurant meals and one's own vehicle.

Projecting finances

Individuals have varying levels of self control, and desire for 'stuff'; however, when considering taking a gap year, it is possible to project what may happen to one's finances - based on an entry level job, and common spending habits.

Income

A full time minimum wage job, after deductions, will net around $1,200 per month.

Board & lodging

The cost of moving out of the family home is prohibitive for most. Typically, kids with full time jobs pay parents something towards their upkeep. Amounts range from paying the telephone bill to a modest $200 - $400 rent per month.

A different type of independence is often sought by owning a car - which is quite feasible when one is employed. In addition to purchase payments, buying a car will involve insurance (typically $250/month), gas ($100/month) and maintenance (likely not less than $600/year).

Entertainment & socializing

Even a weekly night out with friends will cost $50, if not more. Add to that other meals out, movies and recreation, and this represents a clear monthly expense.

Purchases & credit cards

In addition, clothes, electronics, hair and cosmetics costs quickly accumulate, becoming a significant portion of spending - not to mention the danger of creeping credit card debt payments.

Lifestyle

If one is not careful, a lifestyle is quickly established - which can be hard to escape, as the new academic year looms. Some students find themselves lamenting: "Wasn't I meant to be saving for college?"

It is not that they couldn't be more disciplined - forgoing the car, and transferring the extra money to their college account; however, the reality is that many simply find discipline harder than they thought.

As Brian Kerr, director of undergraduate admissions for Trinity Western University, told Options: "We often find that those who take time out simply never make it back."