Looking back to my undergraduate studies many years ago, I had the opportunity to pursue two very different internships. The first was an intern zookeeper at the Houston Zoo in my hometown after my Freshman year of studying Biology. The second was as an apprentice to a furniture maker in Chicago where I had never been before after my Senior year to explore career options related to my second major of Studio Art. Both of these particular opportunities were unpaid, however as we learned in our other recent blog post, these experiences can still provide a lot of value in helping you to progress along your career path which I found to be true. Many internships these days may provide some form of compensation depending on the field, but regardless both require proper planning when it comes to saving and budgeting to make them feasible to pursue.
Housing is likely to be your largest consideration and budget item. If you are able to find a position near family or close friends that you can stay with as I did in my first position this certainly helps. On the other hand, you may find yourself working in a new to you location as I did in my second position with the challenge of acquiring housing when you don’t know the area. The fact that you may only be there for a few months can limit your options on finding a place. Often times the company you work for may be able to provide resources to help in your search or connect you with other interns to coordinate shared housing. You will ideally be looking for short-term rentals that are furnished with full utilities included. Also, proximity of housing options to your place of work should be a factor, though you may end up choosing somewhere further away in a more affordable area. Sites like Airbnb.com and Vrbo.com can be places to look and will typically give discounts for longer stays.
Transportation is also important both in getting to the city you will be working in as well as for your daily commute. You may already own a vehicle or be able to borrow one from family. It’s possible that increased mileage as opposed to being on campus during the school year can add to additional costs in gas and maintenance. It may also make sense to fly or travel by bus/train to your internship location if you don’t have a vehicle and rely on other modes of transportation to get around. Public transportation may be a good solution if the location has viable options or ride sharing with fellow interns/employees can allow you to share costs.
Your food budget can vary depending on whether you may be eating at home with family or friends versus being on your own. It can certainly be an adjustment if you are accustomed to being on a meal plan at the dining hall to having to buy groceries and cook when you are in new surroundings. Add to this the potential workload and learning curve of your position and you may find yourself lacking in time or energy which can lead to more ready to eat meals or dining out which comes at a premium.
You also can find yourself needing to shop for a new wardrobe depending on the position. While the dress code is typically more relaxed for interns you still want to present yourself professionally to make a good impression. This could include dressing up at an office or having appropriate protective wear for outdoor work in the field.
There are then all the other smaller miscellaneous items to consider which can add up and that you may already be accustomed to paying for throughout the year. Social and entertainment expenses should not be forgotten either as it’s important to balance fun with work. You will meet new people to get acquainted with and possibly have new places to explore and will want to be sure to include that in your budget as a valuable part of the overall experience.
Once you have done your research into these various areas and have some educated estimates of the total costs, then you can start looking at the resources you have available. Any income or stipends offered by the internship can go a long way towards meeting your needs, especially if living with family. It never hurts to ask your employer if there is any assistance they could provide even if they haven’t explicitly offered it and one could be creative with the request. Once you have all the facts its good to develop a list of income and expenses which you can do using our available Spending Plan Worksheet or other apps/methods of your choosing. This will help you to identify potential excesses in funding or shortfalls. You will also want to consider whether you are dependent on summer income not only to support yourself but also to go towards next year’s education costs. Additional work during the semester or pursuing new scholarships may be required to save up for a budget deficit resulting from the internship, whereas a budget surplus can be used to help fund other goals.
The Peer Counselors at Powercat Financial are here to help you navigate these decisions and create a plan to enable you to pursue the internship opportunities you desire in a financially sustainable way. Please feel free to schedule an appointment to start the conversation.
Michael Pumphrey, AFC®
Peer Counselor II
Powercat Financial
https://www.k-state.edu/powercatfinancial/
