 |
| http://tinyurl.com/66qv9fn |
With average college costs rising by thousands each year, previous means of affording school, such as having a job, or relying on parents, is no longer enough for many students. According to CNN.com, many colleges across the US are increasing tuition prices rapidly. The University of California, for example “estimates a 30% increase in the 2010-2011 year” and according to College Board, the average price of public 4-year schools tuition fees are as high as $20,000 per year in some parts of the country and can get as high as $50,000 at private schools.
At these prices, many students are forced to find ways to reduce the burden. By reducing costs, an average college student can open up many new opportunities for the future.
Traditional methods to save money for college, such as buying used textbooks or not investing in a car, have been used by millions of students for years. But there are also a number of other lesser-known, simple, and effective ways to save.
J.D. Roth is a personal-finance expert who started the award-winning website “Get Rich Slowly”. The site features hundreds of articles and blog posts about saving money in all situations. Roth gives advice on various areas of finance and has some interesting tips for saving cash in college that many people tend to overlook.
In his article “27 Money Tips for College Students” Roth says, “Go slow. If you play it smart, you can avoid the sort of money troubles that plague many young adults.” It’s a concept that not many college students see as harmful, yet, according to Roth, some “kids are well down the road to financial trouble,” by the time they reach college.
An interesting tip that Roth shares is about investing. Very few college students have any experience with investing in the stock market at all. Roth said, “Find a discount broker and begin making regular investments.” This prepares students for future investment opportunities in the real, post-college, world. Roth notes, “the most important thing is to develop the investment habit.”
The long-term effects of this small investment may pay off big in the long run. “Ten years from now, you’ll thank yourself. If you can find a way to invest $1000 a year for the next ten years, you can set yourself up for life. No joke,” said Roth.
Experts aren’t the only ones finding ways to save money in college; students are joining in on the savings, too. Laura Bennett has lived “a pretty normal” life in Long Island, NY, and has received financial support from her parents for all four years of her schooling at SUNY Geneseo in upstate NY. Her dream of being a teacher now leads her down the path toward graduate school, which she is expected to pay for completely on her own. This presents a new challenge that she has never had to face.
“I’ve always been a saver when it comes to money, but now, even working two jobs back home isn’t enough,” said Bennett.
She’s applied to several graduate programs back home on Long Island hoping for acceptance.
“I'm moving back home for grad school, mostly to save on room and board,” said Bennett. The average cost of room and board at a private University is over $10,000 each year, according to the US Department of Education. The average per semester tuition costs of these schools costs as much as a year at Bennett’s undergraduate university.
Not all college students wish to live at home after high school however. John Hollister, 19, of Sharon, is a sophomore at UMass Amherst. His parents are currently paying for his instate tuition fees. With plans to further his education, however, Hollister is preparing now to save money in any way he can for graduate school.
He plans to live off campus starting next semester, which will affect his college costs. “Probably the best way I save money is by limiting myself to $20 a week.” said Hollister. “This allows me to keep more of my paycheck each week in my savings rather than blowing it on extra food, or parties.” Apart from the occasional visit to the movies Hollister rarely spends a lot of money, and he even saves on food.
Hollister currently works at both dining commons in Southwest at UMass. “By working at the DC I can afford to buy the campus meal plan with less swipes since I just eat on break for free,” said Hollister “This allows me save by not going out to eat or go grocery shopping.”
A time-proven method to saving money in almost all markets is using coupons. They allow someone to almost “treat themselves to something nice” once in a while according to Bennett. “I save a bunch of coupons, my mom has always been a sort of ‘coupon saver’ and now I really see the use of them.” Bennett said. It’s a simple way to prevent overspending and impulsiveness.
The trick to saving a lot of money is to “resist impulsive buying” according to Roth, Hollister and Bennett. “I only buy what I absolutely need,” said Hollister, “For example I’ll buy things like ramen or water over snack foods and other things that I don’t really have to have.”
“I have picked up a third job, refereeing kids soccer games just to break even on the amount of money I spent last year on random things” said Bennett. Bennett is currently searching for a fourth job back home in Long Island. All the money that she makes working this fourth job is going directly to her Graduate School tuition.
Impulsive buying will almost always cause serious amounts of overspending according to Roth. Now, with ATMs strewn about nearly every modern college campus, a debit card becomes the simplest tool of impulsive spending, a practice that colleges almost seem to promote. “Now that I’m going to live off campus next year I’ve stopped impulsively ordering delivery if I’m bored. I just keep food around my room,” said Hollister.
This impulsive buying is the downfall of many students. Roth said “When you want to buy something, ask yourself “Do I need it?” If you think you do, then wait. Don’t buy on impulse. Write the object of your desire on a piece of paper and pin it to the wall. Look at it every day for a week. If, at the end of the week, you still think you need it, then consider purchasing it.”
No comments:
Post a Comment