Six Budgeting Tips for the Person Saving for College
Heading to college?
Most prospective students worry about how they’ll pay for tuition, books, and living expenses while attending college. At the same time, they know a college education is important for financial stability later in life.
Here are a few budget tips for the person saving for college.
Plan Your Budget and Prepare for Emergencies
Plan a detailed budget well before starting school. Know your expenses for a full semester and calculate what you’ll need to pay for living expenses, buy food, books, and other supplies. If you’re holding a part-time job while attending school, you won’t need these expenses accounted for in advance. Set aside an emergency fund for unexpected expenses, like car repairs.
When you have all your expenses covered before starting the semester, you can focus your efforts on studying instead of worrying about your finances.
Research Savings Options
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There are many ways to pay for college. Grants are awards given to qualified students who meet certain criteria. Check with your university to find out what grant programs are available and do some outside research as well. Businesses in your local community and many on a national level offer grant programs, as well. Other options include scholarships, work-study programs, and financial aid.
Choose an Affordable Education Program
Prestigious, Ivy League schools look great on your résumé, but they don’t always lead to better-paying jobs. Choose a school within your means and work hard to earn top scores. Also opt for a course of study with solid job prospects, such as a finance education from the Bryant & Stratton online college. Career prospects in the financial services industry are steady.
Work Your Tail Off While You Can
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Many college students work multiple part-time jobs while they’re hitting the books, but other students need more studying time and can’t afford distractions from a part-time job while maintaining good grades. While you’re in high school or before you start college, work as much as you can.
There are stories of dedicated students who started businesses and worked three part-time jobs to afford medical school. You have more energy while you’re young, so use it to your advantage and stash your earnings away in a college savings account.
Invest in a College Savings Plan
A stash of cash loses value over time due to inflation. But money invested in a savings account or a college savings plan actually earns money over time. A 529 Plan lets you invest money today and use it tomorrow to pay for college at today’s credit rates. Many states offer 529 programs, and some educational institutions offer them too.
Make Economical Decisions
College students don’t often live in luxurious apartments with tons of amenities. Choose your housing options based on your budget and buy a more affordable car to save on gas. Cut back on frivolous expenses before starting school so you’re prepared for frugal living. Stash away money you’re saving with these cutbacks in your savings account or college savings plan.
Making financially sound decisions is valuable for any prospective college student. Planning out a detailed budget in advance, understanding your expenses, evaluating savings options, and investing in college savings plans are excellent ways for ensuring your college years are filled with fun instead of financial strife.