For many people, college is a daunting prospect. In addition to being academically challenging, it can also put a strain on students’ (and families’) personal finances. Between 1980 and 2022, college costs have soared, increasing by 136%, even when adjusted for inflation. On top of the base cost of secondary education, students must also pay for housing, meals, extracurricular activities, and expensive text books. These factors can be overwhelming for young adults, many of whom are doing their best to figure out their place in the world and carve out their future.
What to do?
While we can’t easily stop college costs from rising, we can get proactive on how we save for school, find extra financial help, and approach the college experience, in general. Let’s talk about some strategies and approaches to get smart about college spending:
Choose a Community College or Trade School
A four-year college or university is not for everyone, and that is absolutely okay. Not every young person needs to attend an Ivy League school, let alone a standard four-year university. For some students, a local community college or a trade school is a more suitable option and these schools are often much less expensive. This choice depends on the student’s goals, of course, and what they want to study. You may be surprised by the range of course offerings these “alternative” schools provide.
Apply for Scholarships
A surprising amount of scholarship money is available, if students know where to look and how to apply. These scholarships can be based on academic merit, extracurricular involvement, cultural background, career aspirations, and more. It’s important for students to research and apply for as many scholarships as possible (it doesn’t hurt to apply, and oftentimes the applications are quite similar). By putting in the effort to apply for scholarships, students can potentially offset some of the costs of their education and alleviate some of the financial burden on themselves and their families.
Seek Smart Sources of Financial Aid
One way to curb college costs is by seeking smart sources of financial aid. This can include applying for federal grants, such as the Pell Grant, which is based on financial need and has a relatively low interest rate. Students can also explore work-study programs, where they can earn money to help cover their expenses while gaining valuable skills and experience. Additionally, some universities offer merit-based scholarships or tuition discounts based on academic achievement or other criteria. By exploring these options, students can find additional funding to support their education.
Get Disciplined About Spending
One important way for college-aged young people to save money is by getting disciplined about their spending habits. It’s easy for expenses to add up quickly, especially with the high cost of tuition and other college-related expenses. By setting a budget, tracking expenses, and prioritizing needs over wants, students can gain better control over their finances. This may involve making small sacrifices, like cutting back on eating out or entertainment expenses, but it can make a significant difference in the long run.
Live at Home
While this option may not be popular (or practical) for all students, many would benefit from living at home, at least for a year or two. This allows students to save money that would otherwise be spent on rent, on-campus meals, and other living expenses. Moreover, living at home provides a support system and familiar environment that can help young people navigate the challenges of college life. While it may not be the most glamorous option, it can certainly be a practical one for those looking to save money during their college years.
College-aged young people have several ways to save money and reduce the financial burden of higher education. By implementing some smart strategies, students can navigate the challenges of college while minimizing financial stress. Although it does take some proactive effort and planning up front, students can ultimately achieve their goal of obtaining a higher education without becoming overwhelmed by debt. Each decision can make a significant impact and can help students pave the way to a brighter future without breaking the bank.