Saving for College

A lesson in Money 101

College means a new-found freedom. You're starting to make independent choices about your life and future. It's an exciting time. Finances may be the last thing on your mind, but money is a big deal on campus.

Just think... there's tuition, which seems to skyrocket more every year. There are endless expenses - food, books, gas, clothes and entertainment. That's right, the college good life costs money. And you may be tempted to start spending money on things you want instead of the things you need.

But be careful. All those extra pizzas and lattes can add up. In fact, a survey by research company Student Monitor revealed that undergraduate students spend an average of $208 a month for discretionary spending, which computes to nearly $15 billion a year. *1 The Student Monitor survey also showed that within a week of being interviewed: 69 percent of respondents ate at an off-campus fast-food restaurant; 40 percent used a credit card; and 38 percent saw a movie off campus. *2

College is a definitely a fun and social time. But it's also a time to learn to balance having fun with being financially responsible. There will be challenges for sure. It's probably the first time you live on your own - and handle your own money. And some of the most valuable (and hardest) lessons you learn won't come from a book.

There's also a lot to know about how to afford the actual tuition - financial aid options, scholarship opportunities, work-study programs and more. In this section, both parents and students will find what they need to make the best decisions about college and money.

Remember, life skills are learned from experience. And as long as you're able to plan ahead and take charge of your money, the financial skills you learn will benefit you for the rest of your life. Saving and planning can play a positive role in your financial future. And so can a low-cost night in with Ramen noodles and a few friends.

*1 http://seattletimes.nwsource.com/html/
living/2003192873_collegespend12.html
Seattle Times. August 12, 2006. Extracurricular expenses can add up fast in college," by Stephanie Dunnewind.
*2 Ibid

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