College has never been cheap. Even so, the cost of attending school has become astronomically large, more than doubling in the past 30years. With no end of ever-inflating tuition in sight, this can make it challenging to plan out when you should go to school and how you should handle expenses — before, during, and after your education. Here are a few tips to help you strategically plan the financial aspects of your college journey before you commit to the cost of an education.
Start With the When
The first question to ask is when you should go to college. It may sound simplistic, but if you haven’t considered the question before, you really should sit down and give it some serious thought.
It’s no secret that college is expensive. As such, it shouldn’t be something that everyone does just to “go through the motions” on the way from childhood to becoming an adult.
Even if you already know that you want to go to college, make sure that you’re going at a time of your life when it truly makes sense. Factors to consider that can impact the “when” of your education include:
- What kind of school (private or public) you want to attend
- The length of the education that you need
- The geographic location of the college
- Other responsibilities, like a current job or a family
Add up all of the factors that matter and then consider when would be the right time to apply to schools.
Consider the Up-Front Costs
Once you’ve set your college career in motion, it’s time to count up the costs. Start by doing your best to estimate the cost of your school. Simply saying it will cost “a lot” and then dealing with the bills when they arrive should never be an option. Instead, estimate the cost of things like:
- Tuition
- Books
- Renting a living space
- Food
- Transportation
There are many other factors. Get them all on your radar so that they don’t catch you by surprise.
Once you’ve added up the basic costs of your education, start considering how you’ll pay for them. You have options here, so don’t panic when you see the price tag. Instead, consider which of the following (you’ll probably be able to utilize more than one) can help with your college costs:
- Personal savings
- Income while you’re in school
- Help from family or friends
- A scholarship or grant
- Student loans
As you sort through your options, make sure to avoid any scams that may creep up. Over 42% of reported scams come from individuals 18 to 24 years old. In other words, college-age people intimidated by school costs and struggling with a lack of information tended to get hit by scams most often. Always check before pursuing an avenue to fund your education.
Plan Your School Expenses
Once you’re in school, the focus should shift to spending as little money as you can. You already have your plan in place to pay for your school. Now you have to stick to it and minimize the costs as you go along.
This can be done in many different ways, such as:
- Living off-campus or with family
- Doing your own cooking
- Minimizing your utility usage
- Replacing your car with a bike or a rideshare app
- Purchasing second-hand books, clothes, furniture, and so on
There are many ways to cut costs while you’re in school. This doesn’t mean you can’t spend money at all, though. You can still have a good time with friends, invest in your favorite charities, and even splurge on occasion. Just make sure to always do so with care.
Create Long-Term Financial Goals
Finally, consider what you’ll do once you’re out of school. This is something that you can start doing before you even begin your education.
Of course, these will be long-term goals, but it doesn’t hurt to start strategizing as soon as possible. There are many things that you can do to prepare for your financial future, including:
- Building a solid budget that keeps your expenses within your income
- Properly managing your student loans
- Creating an emergency savings fund
- Building a healthy credit history and credit score
- Setting long-term goals, like saving for retirement and buying a home
While these activities may be in the future, it’s wise to get comfortable with them sooner rather than later.
Conquering Your Finances While in College
College is expensive. There’s no way around it. However, when treated with respect, it can also be an investment in your financial future.
Rather than treating your college as an excuse to ignore your finances before “real life” starts, start taking your educational finances seriously right here and now. Consider when you should attend school. Then create a financial strategy that takes into account everything before, during, and after your time in college.
If you can do that, you’ll be able to maximize the impact that your college will have on your finances, your career, and your life as a whole.
