After graduating from high school, Estrella plans to work for two years while living at home. She will work 50 weeks a year. Develop a plan that will enable her to save $26,000 for a two-year program at a community college.
Here's a plan to help Estrella save $26,000 for a two-year program at a community college:
1. Determine the target savings amount: $26,000
2. Determine the number of years she plans to work before starting college: 2 years
3. Determine the number of weeks she will work each year: 50 weeks/year
4. Calculate the weekly savings goal: $26,000 / (2 years x 50 weeks/year) = $260/week
5. Determine Estrella's monthly expenses while living at home, including transportation, food, personal expenses, etc.
6. Subtract the monthly expenses from her monthly income to determine her potential monthly savings.
7. Allocate a portion of the monthly savings towards her weekly savings goal. For example, if she gets paid monthly, she could transfer $1,040 (4 weeks x $260) from her monthly savings into a separate account dedicated to her college savings.
8. Setup an automatic transfer from her checking account to the college savings account every month.
9. Continuously monitor her expenses and income to ensure she is on track to meet her savings goal.
10. Consider finding additional ways to increase her income or reduce expenses to save more, such as taking up a part-time job or cutting down on discretionary spending.
Remember, it's essential for Estrella to stick to her savings plan and remain disciplined with her spending habits to reach her savings goal.