How to Manage Hidden Costs as a Student - Part 2

May 15

By Lynne Fuller, Founder of College Flight Path

As students start their college career, this is typically the first time in their lives that many of them will be in charge of managing their finances. It is important to educate students prior to leaving for college on ways to handle expected and unexpected expenses as they navigate this new responsibility.

Take a Personal Finance course:

Enroll in a Personal Finance class during high school (online/elective) or during the summer. It is helpful to start planning during high school by learning about budgets, Excel formulas, and calculations to understand interest and different ways to track total expenses versus savings.

Check out this online Personal Finance course: https://www.intuit.com/solutions/education/courses/personal-finance/

Build your credit score:

Some banks offer cash-secured credit cards. Caregivers can place a deposit to be used as the credit limit, or you can link a savings account to secure the limit. Banks will monitor purchasing and payment activity to grant a future unsecured credit card. A good credit score is important for so many reasons, especially when purchasing a car, signing an apartment lease, and buying your first home. Be sure to pay credit balances off in full each month and always pay on time to boost your credit score. Pick one or two vendors (Uber, Lyft, EZPass, cell phone bill, etc) to be automatically charged to your credit card to get into the habit of purchasing and paying off.

Track your spending:

Many credit card companies offer a chart or a monthly expenses list broken out by category. Tally your checking, savings, and credit card transactions each month to be aware of spending habits and look for ways to reduce costly mistakes. Set a reminder for the 1st day of each month to look back at last month's expenses and to look ahead to upcoming months’ expenses to plan accordingly.

Work Part-time during college:

Even with a heavy course load and limited time during the week, working in a part-time job can offer a couple of hours to socialize, take a break from studying, and the ability to earn some extra spending cash. Try to apply for on-campus (tour guide) or slightly off-campus jobs (server, babysitter, tutor, retail) to walk or take public transportation to work; rather than spending money on gas or Uber rides. There are also many online ways to earn money, like marketing internships or local businesses that may need help with their social media sites. Having summer/holiday breaks and/or school-year jobs are also great ways to boost a resume!

Plan for potential costly off-campus housing:

Estimated housing costs on college websites are usually for freshman dorm costs. Plan and prepare to spend more on off-campus apartments or rental homes in upperclassmen years. Most rentals ask for a security deposit, and rent does not usually include utilities. Consider becoming an RA (resident assistant) in a dorm. Although an RA position comes with a lot of responsibilities, it does have many benefits, such as free room and board. Also, it is another great resume booster.

Live with Roommates:

Besides feeling isolated if living alone, ask to room with a couple of other people with similar schedules and interests in order to keep each other company and split the rent expenses. Facebook groups may list others looking for houses/apartments in the same locations. You may also choose to grocery shop in bulk, combine furniture and household supplies to keep costs manageable while living off campus. Be sure to download a mobile payment app (Venmo) to easily reimburse/get reimbursed for house expenses.

Treat coffee drinks and desserts like a treat:

Everyone enjoys an iced vanilla latte with a chocolate chip cookie, but try to make that a treat rather than a daily habit. Spending greater than $5 per day on coffee will surely add up. Consider brewing a cup at home. In addition to coffee expenses, many college students spend a lot of money on bottled water. Investing in a reusable water bottle is a great way to fill your favorite beverage at home and keep more money in your bank account.

Save a small amount of money each month:

Even if students can only afford to put $10-$20 aside each month, something is better than nothing. Savings creates a positive habit that will pay off in the long run. Many online banks offer high-yield interest rates. These accounts are easy to transfer between other accounts or withdraw for emergencies. Check out Bankrate to view current interest rates and minimum amounts to open a savings account.

Search for scholarships:

Once students start college, it does not mean they no longer qualify for scholarships. Talk to advisors about any potential local companies that offer major-specific scholarships. Continue to search online by checking back often for our searchable Airtable of scholarships here.

Have fun!

Do not forget to have fun! Be sure to take some time with friends and spend a little of the hard-earned, well budgeted money each month to grab a pizza, take that yoga class at the local studio, order that latte you have been dreaming about all week, go out for ice cream, or purchase a ticket and show some school spirit at a favorite sporting event!

To learn more about ways to manage hidden costs of attending college or any other related topics, email hello@collegeflightpath.com, book a free 15-minute call, or engage in our Self-guided Senior Flight Log Application course.

Lynne Fuller https://www.collegeflightpath.com