Financial Planning Gap Year

Things to consider as you financially plan for a Gap Year...

1. How are you paying for your Gap Year?

• Depending on your goal/ plan for your gap year the response to this question may vary. Do realize that some gap year programs cost money, as does traveling. Make sure you are thinking through all aspects of taking a gap year and what it might take financially to complete!

2. If your gap year goal is to save money, how much money are you hoping to save up?

• Take time to create a goal. Maybe set aside 30% or more of your paycheck each pay period to pay for your next step. Talk with your financial institute on how to best save/invest your money to get the most out of your gap year.

3. What is the cost of living in the location of your gap year?

• If you plan to travel or live on your own during your gap year, make sure you pay attention to cost of living. Here is a breakdown of the current cost of living in Dane County.

4. Do I understand enough about the process of financial planning or banking?

• Check out these resources from Summit Credit Union

5. How does FAFSA and scholarships work within a gap year?

• FAFSA is an application that you need to apply for each year. Therefore if you take a gap year, but already completed the FAFSA you will have to complete again the following year just like all students do. As for scholarships some can be saved in your own banking institute and others go directly to your school of choice, but will be saved for you.