Debit Cards V Credit Cards
When you’re under 18, you’re lucky! You can’t get into trouble with credit cards as you are under the legal age! But a lot of young people are encouraged to get credit cards when they turn 18! Beware as misuse of a credit card is one of the easiest ways to get into debt.
Let’s first look at the differences between the two. A debit card gives you access to your own money, so you are limited to withdraw or spend only as much as is in your account. When you turn 18...
The Cost of Independence
Bad news…without the endless charity of mum and dad, you're going to find living out of home expensive. Perhaps it's worth it, but if you have big plans like travel or buying a car you might be better off sticking it out at home for as long as you can.
Rent is the obvious cost, and it will vary depending on the kind of property you have, the number of people living with you and the location of the property. Expect to spend at least $100 per week. That's just to have a roof over your head
Set Up Costs
- 2 weeks – 1 month rent up front
- Bond – normally a month's rent
- Basic Furniture – bed, lounge chairs, table and chairs
- Basic Appliances – fridge, washing machine, TV, stereo, video/DVD, microwave, toaster, jug
- Basic Kitchen Accessories – pots/pans, cutlery, crockery, glassware, utensils
- Linen – sheets, pillows, doonas/blankets, towels, tea towels
- Cost of setting up a phone account
- Cost of setting up a electricity account
- Cost of setting up a gas account
- Cost of a removalist to get everything there – get quotes and budget for at least $100
Ongoing (recurring costs)
- Groceries – Food
- Groceries – Toiletries and Cleaning products
- Rent
- Power
- Gas
- Phone
Add on top of this all the transportation, entertainment, clothing and regular costs you have to run your life.
You can reduce some of the costs by borrowing furnishings or accessories you need for your home, or buy them cheaply from a second-hand store – it is not going to be the Taj Mahal on your first day! By now, the costs of independence should be obvious.
The rule of thumb is if you can't afford to live comfortably, to eat properly and enjoy your leisure time, then you're not ready to move out…yet.
Assuming you can afford it all, you'll need to start the flatmate search…
