You've heard it before - but it's true: College is an investment in your future that you and your parents should start planning for now. If you are planning to attend college then you will most likely be accruing some sort of expenses, regardless if you have received financial aid, scholarships, and grants or if mom and dad are floating the bill.
Keep in mind that financing your college education means much more than just paying tuition.
There is room and board, books, lab fees, food, student membership fees, entertainment and much more.
Will you have car? Then you'll need to consider paying for parking, insurance - which may change if you are moving out of state, and gas.
Do you plan on living in an apartment? Then you have rent, security deposit and possibly even renters insurance.
It is easy to see how the price of college goes up and up.
So what are some of the ways students can save money for school or better yet, while in school?
The first thing you need to do is know where you stand. Talk with your parents and ask them if you will be expected to pay for some or all of your education. Knowing exactly how much you'll need to save is motivation enough.
Make Goals and Prioritize.
Think before you make any purchase. Do you really need that Ipod? Would it be better to spend that money on books (which can cost you close to $300 a semester). Teens on average will spend about $170 a week. Take into account how many weeks there are in a year (52) and that's a lot of dough! Though you may have money now, you need to remember your goal. Is it worth spending that money now or holding on to it when it really matters?
The Summer Job
In "A Bug's Life" the ants spent all year gathering food for the grasshoppers. This is a good mindset. Start early gathering food...or in your case, cash! The summer of your freshman year is when you should begin.
To give you an idea of how starting early plays to your advantage, let's looks at some numbers:
- Say you work and average of 15 - 20 hours a week during school at $9.00 per hour.
- 9 months while working in school can make you close to $5,000.
- Take the three months of summer working 30-40 hours a week and you are looking at an extra $3500.
- So in one year you have the potential to earn $8500 before taxes.
- Multiply that number by four years and you have $34,000.
- After taxes you could still be looking at around $25,000.
That's a nice nest egg to have while in school.
Note: Working more than 15 hours a week during school has been shown to hurt studies
At the very least students should try to contribute up to a total of $4,000 a year toward college costs. You should also seek out employers who may offer education benefits.
Community College
Consider getting your general education courses out of the way at a community college. Not only will the price tag most likely be significantly lower, you will have the opportunity to continue to work as your learn. When its time for the four year school you'll be able to concentrate on your major and spend less time working.
Volunteer
Consider deferring school for a volunteer year in AmeriCorps, VISTA, or a similar program. You'll get a living stipend up to $4,725 toward future college costs. Even better, a growing number of colleges are matching that grant with scholarships.
Tax Benefits
Do some research to find out if you are eligible to get any tax breaks such as the Hope or Lifetime Learning credits, or take an education deduction. Those could reduce April's tax bill by up to $2,000.
Take a Class or Test Out
There are also courses that can be taken during high school (such as advanced AP courses) to earn college credit that will reduce the number of courses that need to be taken once the student begins college. Talk to your school's guidance counselor to ensure you're also doing all the right things to academically prepare for college.
CLEP out if possible: Try studying and passing tests, such as the CLEP and DSSTs, to place out of the freshman year and thus reduce total educational costs.
The Free Money
Last but not least, discuss what your family can contribute and then aggressively go after "free money" options such as scholarships, grants and employment opportunities.
Helpful resources
Now you have an idea of how saving money will play in your favor, check out a cost estimator calculator to determine your Expected Family Contribution (EFC) and financial need, and to estimate your student financial aid. Then, add up your total resources from savings, grants/scholarships and work. If your resources can cover your expenses, you're all set. If not, you'll see what you'll need to save to make up the difference from student loans and other sources.
Play with this tool from the US Department of Education: http://nces.ed.gov/ipeds/cool/
- First enter the school's name
- After you've clicked on your school's name, click on "Retention/Graduation rates" on the left.
- The second chart on the right gives the percentage of students who graduate in four, five, and six years.
- Now, calculate next year's true cost of attendance by adding up tuition, fees, room and board, books, travel, and related expenses.
- Last, but not least, subtract out your free money (grants and scholarships).
- Multiply this net cost by four (4) if the federal statistics indicate that most students at your school graduate in four years. If most students take longer, then multiply by five, or even six, depending on the school's stats.
This will give you a good idea how much the price tag of the school will be and how much you will need to save. Hint: Increase the total by about 10 percent to account for probable inflation.
So now you see how the cost of college isn't just tuition. There are more costs to consider and though its not always fun, start saving now. You will be much better off and thankful that you did.
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Posted
Jun 30 2008, 02:20 PM
by
Librarian