BACK TO SCHOOL 2011: Budget Tips for College-Bound Kids

Wednesday, August 24, 2011

Hannah Brassord, GoLocalProv Contributor

Going off to college for the first time brings a big dose of freedom and the inevitability (one hopes) of responsibility. Money can play a central part in how well (or poorly) that first year goes. Here are some expert tips for new college students on budgeting smart and saving money.

Saving on food

One area where first-time college students are often hit the hardest is food. It’s easy to spend a little here and there, and before you know it, all of your hard-earned babysitting cash is gone! Eating out is a fun activity to do with your friends, but try to do it only every so often. “Bear in mind that every time you eat out, rather than have a meal you have already paid for on your dining plan, you are wasting money,” says David Michel, Associate Director of College Counseling at The Wheeler School, “Similarly, think about the opportunity costs of fancy coffee drinks. The little expenses add up!” Utilizing the school dining hall as much as possible is a smart move that will usually fill you up and give you your buck’s worth “Colleges will offer different types of meal plans. Choose those that offer the best value given your habits. If you are a late riser, you might avoid a plan that requires you paying for breakfasts that you will sleep through.”

Saving on books

Another necessary college expense that can deliver a major blow to your wallet: you have to buy your books! Or do you...? No! There are other options such as renting them from Web sites such as Chegg.com, Efollett.com, or rentatext.com. You can rent your books there for one or two semesters, depending on the course; at semester's end you just have to send them back. If you do decide to buy your books, never buy them new; the price is not worth it and used books are just as good. “Avoid buying new text books in the bookstore on campus,” advises Cristiana Quinn, GoLocalProv College Admissions Expert. “Buy used ones from friends or go online and search the ISBN number.” And always sell them back at the end of the semester. You may not get what you paid for, but organizations like Belltower Books or Chegg can work with you to get some money out of these books that you will probably never need again.

Using debit and/or credit cards

If you don’t already have a debit card, it’s a good idea to get one now. This will help you abstain from spending money impulsively. David Michel cautions college students to stay away from credit cards, which will surely be marketed to them left and right. “This is a dangerous interest-accruing trap," Michel says. "Some colleges allow students to use their student ID cards as debit cards all over campus, from the dining hall to the laundry room. Some off-campus merchants may accept them as well.” If you do choose to get a credit card, which many people do in order to start building their credit, make sure you are responsible with it and understand how it could affect your future. “The most important thing for college students to be aware of is protecting their credit scores,” says Dan Forbes, GoLocalProv financial expert and CFP/Owner of Forbes Financial Planning. “Many students get their first credit card during their college years and the credit bureaus (TransUnion, Experian, Equifax) start keeping score right away. A solid credit score will make it easier to borrow money to buy a car or home after graduation.”

Planning with parents

When it comes to parents and kids sitting down and discussing their financial planning for college, it’s important to set a budget together and establish an understanding of how money is to be spent and saved. “Have a meaningful conversation about money with your soon-to-be college student,” suggests David Michel. “Set a budget based on anticipated expenses, like books, food, clothes, travel, and incidentals. Colleges are fairly good at estimating these costs.” He also warns students not to get into any muddled money woes with your peers at school. While you may be close to roommates and friends and feel comfortable sharing money, it can often get messy regarding who owes who what. “Neither a borrower nor a lender be. It’s often hard to get roommates to pay you back. Don’t go down that road.”

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