debt free degree
landon whetstone
editor: Matt hunsaker
Attending an institution to gain higher education has probably been the most financially demanding choice of your young life so far. It's very expensive and time consuming. So how does one pay for college?
Most everyone will agree that obtaining a higher education is the best investment you will ever make. That's why so many students don't think twice about going into debt with student loans, they consider it a smart investment. I agree college is worth investing the time and money, but going into debt with student loans isn't a good idea.
When scholarships and grants don't cover all your expenses, you’re better off getting a job then pulling out student loans. Jacob Whetstone, the credit Manager for the Dannon Company, graduated from Utah State with a major in economics and also a major in accounting, totally debt free. He worked full time all 3 years he attended Utah State. Even though this was very time consuming and a lot of work every day he said it was absolutely worth it. He graduated not only without student loans but totally debt free. Jacob even added in that "It was hard work and time consuming but there was still chances to go out and have an enjoyable time with friends."
Graduating debt free made life after graduation a lot easier for Jacob and allowed him to immediately make and save a lot of money. When planning for the future it only makes sense that you should avoid student loans at all cost. Although, this is not the typical belief among students in today's world. The common student thinking is, as long as you get that degree you will obtain a great job and pay off any student loans without any problems (Block). With this belief many students just jump right in with student loans.
Erin Schmucker, is a very smart women who created and runs the very efficient transportation department for legacy village in Layton. She graduated from Utah State with a degree in Exercise Science and psychology. She used Student loans to pay for school, because she shared the belief that, as long as you obtain a degree you can land a job that will enable you to pay off the student loans. After graduation Erin had a six month grace period then had to start making payments of over 500 dollars every month. Although she had a degree from Utah State her starting pay for her degree was still only 11 dollars an hour. It was a struggle and very stressful to make the 500 dollar monthly payment. After years of hard work developing a transportation department for legacy village in Layton, she had a pay raise of 15 dollars an hour. Even though Erin has a degree and a steady full time job that pays 15 dollars an hour, she still has constant anxiety knowing she has to always pay those debts.
On the other side of the issue Jacob graduating debt free was able to support a small family right after graduation and save up enough money to pay for graduate school without any debt. Jacob graduating college debt free was able to very quickly make and save a lot of money compared to Erin who has student loans to pay off. Even when students know the great benefits of graduating debt free, the great majority still chose to use student loans.
Students still choose student loans because they know the extensive amount of effort, time, and social sacrifices it takes to have a job and do well in school. Knowing the amount of effort it takes, Erin Schmucker decided not to work while attending school. She had a slight learning disability and thought that for her to do well in school she needed to be very focus on her courses. She felt as if she tried to hold down a job she wouldn't be able to spend the necessary time for studying. Not only this, but Erin's social life was very important to her. She spent a lot of time with friends.
Many students with already so much on their plate make the same choice as Erin, they don't think they could put the effort necessary to be successful in both, or they don't want to give up on some of their social life. Speaking with Erin about her choice to use student loans she said she regrets the amount of debt she racked up. She wishes she made smarter choices with her money, worked more, and took out less loans. With all the anxiety and constant payment of student loans she has, she would tell any college student the best way to go through school is debt free.
Both Erin and Jacobs’s experiences were a little bit extremes. Most students experiences fall somewhere in the middle. 40 percent of students have less than 10,000 dollars in student loans, the next 30 percent have between 10,000 and 25,000 dollars in loans (Block). The common plan that was found among these students without outstanding amount of student loans was, only work a few hours a week while attending school. They would then graduate school with a degree that launched them into a career to pay off the loans.
What if things don't go as planned though? Taking out a loan is risky because you are spending money you don't know you will ever make. More than half a million Americans have defaulted on their student loans. Millions more are delinquent on their loans (Pyke). When you take out student loans you’re hoping that the economy will stay stable and you will be able to land a job to pay the debt. That doesn't always happen and is the reason for all the defaulted and delinquent student loan debt.
Not relying on student loans to pay for school is a smart and responsible choice. Investors are people that have extra money to invest, they don't go into debt to invest because it’s too risky. School is the same way, it is the best investment you will ever make but you must be smart about it. Investing money you don't have is always risky. Staying out of debt to pay for school ensures financial safety for life after graduation.
Jacob was able to support a family right after graduation, and would have been able to no matter what happened in his job field because he graduated debt free. He also was able to attend graduate school debt free, landing him a job starting at 50,000 dollars. A starting pay of over 50,000 with a only a house payment to make, really adds up. Also with his master degree he has only moved up to better positions at work and so his income has only kept increasing, while still not having any significant debt.
Jacob has always done very well financially and he says it's all because he didn't go into debt during his time at Utah State. For most everybody, if you put forth the effort every day in work and school, are disciplined with your time and money, and make some social sacrifices you could also graduate debt free. This instantly allows to you make and save a lot money right after graduation. Resulting in a lot of doors and opportunities opened for you to succeed in your career. If you want to always be financial secure and make a lot of money in your life, put forth the extensive effort required during school and graduate debt free.
Works Cited
Block, Sandra. "The right way to borrow for college" kiplinger. n.p n.d. Web. 5 Nov 2014.
Pyke, Alan. "Half a Million More Americans are in Default On Their Student Loans Than A Year Ago" think progress. 6 Aug 2014. Web. 5 Nov 2014
Schmucker, Erin. Personal Interview. 5 Nov 2014
Whetstone, Jacob. Personal Interview. 5 Nov 2014
Most everyone will agree that obtaining a higher education is the best investment you will ever make. That's why so many students don't think twice about going into debt with student loans, they consider it a smart investment. I agree college is worth investing the time and money, but going into debt with student loans isn't a good idea.
When scholarships and grants don't cover all your expenses, you’re better off getting a job then pulling out student loans. Jacob Whetstone, the credit Manager for the Dannon Company, graduated from Utah State with a major in economics and also a major in accounting, totally debt free. He worked full time all 3 years he attended Utah State. Even though this was very time consuming and a lot of work every day he said it was absolutely worth it. He graduated not only without student loans but totally debt free. Jacob even added in that "It was hard work and time consuming but there was still chances to go out and have an enjoyable time with friends."
Graduating debt free made life after graduation a lot easier for Jacob and allowed him to immediately make and save a lot of money. When planning for the future it only makes sense that you should avoid student loans at all cost. Although, this is not the typical belief among students in today's world. The common student thinking is, as long as you get that degree you will obtain a great job and pay off any student loans without any problems (Block). With this belief many students just jump right in with student loans.
Erin Schmucker, is a very smart women who created and runs the very efficient transportation department for legacy village in Layton. She graduated from Utah State with a degree in Exercise Science and psychology. She used Student loans to pay for school, because she shared the belief that, as long as you obtain a degree you can land a job that will enable you to pay off the student loans. After graduation Erin had a six month grace period then had to start making payments of over 500 dollars every month. Although she had a degree from Utah State her starting pay for her degree was still only 11 dollars an hour. It was a struggle and very stressful to make the 500 dollar monthly payment. After years of hard work developing a transportation department for legacy village in Layton, she had a pay raise of 15 dollars an hour. Even though Erin has a degree and a steady full time job that pays 15 dollars an hour, she still has constant anxiety knowing she has to always pay those debts.
On the other side of the issue Jacob graduating debt free was able to support a small family right after graduation and save up enough money to pay for graduate school without any debt. Jacob graduating college debt free was able to very quickly make and save a lot of money compared to Erin who has student loans to pay off. Even when students know the great benefits of graduating debt free, the great majority still chose to use student loans.
Students still choose student loans because they know the extensive amount of effort, time, and social sacrifices it takes to have a job and do well in school. Knowing the amount of effort it takes, Erin Schmucker decided not to work while attending school. She had a slight learning disability and thought that for her to do well in school she needed to be very focus on her courses. She felt as if she tried to hold down a job she wouldn't be able to spend the necessary time for studying. Not only this, but Erin's social life was very important to her. She spent a lot of time with friends.
Many students with already so much on their plate make the same choice as Erin, they don't think they could put the effort necessary to be successful in both, or they don't want to give up on some of their social life. Speaking with Erin about her choice to use student loans she said she regrets the amount of debt she racked up. She wishes she made smarter choices with her money, worked more, and took out less loans. With all the anxiety and constant payment of student loans she has, she would tell any college student the best way to go through school is debt free.
Both Erin and Jacobs’s experiences were a little bit extremes. Most students experiences fall somewhere in the middle. 40 percent of students have less than 10,000 dollars in student loans, the next 30 percent have between 10,000 and 25,000 dollars in loans (Block). The common plan that was found among these students without outstanding amount of student loans was, only work a few hours a week while attending school. They would then graduate school with a degree that launched them into a career to pay off the loans.
What if things don't go as planned though? Taking out a loan is risky because you are spending money you don't know you will ever make. More than half a million Americans have defaulted on their student loans. Millions more are delinquent on their loans (Pyke). When you take out student loans you’re hoping that the economy will stay stable and you will be able to land a job to pay the debt. That doesn't always happen and is the reason for all the defaulted and delinquent student loan debt.
Not relying on student loans to pay for school is a smart and responsible choice. Investors are people that have extra money to invest, they don't go into debt to invest because it’s too risky. School is the same way, it is the best investment you will ever make but you must be smart about it. Investing money you don't have is always risky. Staying out of debt to pay for school ensures financial safety for life after graduation.
Jacob was able to support a family right after graduation, and would have been able to no matter what happened in his job field because he graduated debt free. He also was able to attend graduate school debt free, landing him a job starting at 50,000 dollars. A starting pay of over 50,000 with a only a house payment to make, really adds up. Also with his master degree he has only moved up to better positions at work and so his income has only kept increasing, while still not having any significant debt.
Jacob has always done very well financially and he says it's all because he didn't go into debt during his time at Utah State. For most everybody, if you put forth the effort every day in work and school, are disciplined with your time and money, and make some social sacrifices you could also graduate debt free. This instantly allows to you make and save a lot money right after graduation. Resulting in a lot of doors and opportunities opened for you to succeed in your career. If you want to always be financial secure and make a lot of money in your life, put forth the extensive effort required during school and graduate debt free.
Works Cited
Block, Sandra. "The right way to borrow for college" kiplinger. n.p n.d. Web. 5 Nov 2014.
Pyke, Alan. "Half a Million More Americans are in Default On Their Student Loans Than A Year Ago" think progress. 6 Aug 2014. Web. 5 Nov 2014
Schmucker, Erin. Personal Interview. 5 Nov 2014
Whetstone, Jacob. Personal Interview. 5 Nov 2014
$avvy $tudents $ave
jordan shipley
Editor: alexis bingham
For college students, college is supposed to be the first years away from their parents’ rules for most high school graduates. College is supposed to be fun and a balancing act for students between college classes and parties with their friends. However, college has turned more and more into the beginning of a path toward incurring a great amount of expenses for school and other normal living costs. Although some students find themselves on scholarship and others have part or all of everything paid for by their parents and grandparents, a majority of students find themselves wondering how to keep up their desired lifestyle while living on a different budget than they experienced while living at home. With this new reality that college brings, students are forced to make economical decisions with their finances and with their time. Because each student’s situation is different, not all students have equal opportunity to earn more money, but all students have equal opportunity to spend less money. There are five major steps that will help all students to spend less: determine expenses, establish a budget, cut educational costs, save on basic necessities, and spend less money on recreational activities. Through a budget that eases the burden of educational, regular, and recreational expenses, students can expect to be more financially free during college as well as in the future.
The first step in setting up a budget and finding ways to save is to understand how money is being spent. Simply recording expenses in some way is the beginning step to recognizing how money is being spent. Many options such as Mint.com, Quicken, or even free apps work great. The key is to keep up with spending and to diligently record transactions on a regular basis. Once the expenses are recognizably categorized and recorded, it is essential to point out spending habits that need to be changed. To understand how to better spend and save their money, many Americans turn to Dave Ramsey. Ramsey has become a well-known financial author, radio host, television star, and even gives motivational speeches. According to Ramsey, “We don’t think much about our daily money-wasters…but we need to. There are so many places in our daily routine where money can be wasted” (Ramsey). As we recognize these wasted funds in our regular routines, we can establish a budget.
The very beginning of taking these steps to save money begins with understanding required expenses and forming a budget based upon income and other sources of money. Unfortunately, this understanding takes discipline as most of us enjoy the benefits of our bad spending habits more than the necessary expenses. For example, individuals that continually avoid car accidents month after month usually find little to no satisfaction from paying their insurance each month. Most of the problem is that students feel that a budget will keep spending to only these types of expenses. In some cases this may be true, but budgeting is so much more. According to Investopedia, “Budgeting makes it easier for people with incomes and expenses of all sizes to make conscious decisions about how they’d prefer to allocate their money” (Fontinelle). As it states, perhaps the greatest part of creating a budget is the fact that it enables us to ensure that we spend our money how we wish rather than casually going about our week until we simply run out of money in our bank account. As monthly expenses are accounted for and weekly goals are established, students will recognize that they will enjoy their lives more because prioritizing our spending brings a greater level of gratification at work and at home.
Because a large part of expenses for students come from the actual costs of education, it is important to ensure that all the opportunities to get compensation for these expenses are being taken advantage of each semester so that an optimal amount of our budget can go towards saving or more gratifying types of spending than on education. Educational expenses can include tuition, books, and the added course fees that everyone appreciates paying each semester. The most saving students will experience is getting scholarships. Apply for all scholarships including Federal student grants. Beyond actually getting scholarships, it can be helpful to look for alternative ways to purchase books. Many online resources and even buying used or renting books at the campus bookstore will undoubtedly save hundreds of dollars per year. Finally, although Ratemyprofessor.com will provide the way to select the easiest A grade, the most financially sound decision students will make in selecting classes is avoiding classes with expensive course fees that often times can be avoided. It is important to note, however, that students will want to choose these classes with fees in the case that their work schedule works better with these times and if they make more money working those hours than they will spend over the course of the semester had they chose differently. Some students may argue naively that rent, food, transportation, and other expenses come as a result of education, but unfortunately students will continue with these experiences beyond college.
These necessities most students face can present an equally daunting task of paying for each week, month or semester. Although the expenses may not cost as much per semester as the educational expenses, most find themselves trying to pinch to pay for food or the insurance after they have spent their money on the school costs. Saving on rent will probably boil down to mostly selecting the cheapest housing that is available. Automobiles are another example of choosing an option that may not be the nicest but is probably the best. According to Bankrate, “Conspicuous consumption often leads many to drive fancy cars at the expense of savings, retirement funding and debt management” (Guillot). These fancy new cars that seem so appealing add up as money is lost upon purchase with depreciation, loan interest rates, higher insurance premiums, and beyond. Because rent and car costs often take place at the beginning of the month, most of a student’s funds have been cut to a minimal account balance. Because food is the most important expense left each month, it is vital to ensure that food costs do not exceed necessary amounts. According to WebMD, students and others gone all day will find that “making lunch and taking it with you is a great money-saver” (Zelman). If you still have money left to spend, some of the main expenses are covered in some way for you or you must have a good paying job like summer sales. For you, it is now time to see the maximum benefits available to you as a result of your budgeting by choosing to enjoy your money wherever you wish.
Whether it easily fits in the budget or not, most students will find themselves spending money on hanging out with their friends and dating. For the students that have money left in their budget, group activities and dating can be a great experience of engaging in the things that bring the most joy to those involved. However, for students who are barely making it financially, hanging out with friends or trying to go out on a date means that a lot of time is spent thinking of ways to have fun without spending money, and the rest of the time before the activity is spent feeling social pressure to spend money that isn’t readily available. Editor at Howstuffworks.com John Fuller explained 10 tips for college students to save money. In his article, this time spent with friends is directly focused on as a key to saving money as a college student. Fuller acknowledges that students most surely will spend money to some degree, but Fuller urges students to “ask if any of these places offer student discounts. You can also think of alternative ways to have a good time” (Fuller). Most importantly, find ways to spend money in ways that make you happy, but be aware that being happy can be free and happiness is not measured by the amount of money that was spent.
As a college student, I recognize that none of these steps are easy for college students or anyone else to carryout or follow. However, as students apply these tools to help themselves save on both educational, basic living, and recreational expenses, college students will find that they will either have more money to spend as they wish or at least will owe less upon graduation than they would have had they not changed their spending habits. While some students may already be living all of these principles, most students are not and everyone can benefit from these tools. Although all of the tools mentioned will build upon each other to help a student become financially stable, use of any amount of these tools by a student is better than none.
Works Cited
Fontinelle, Amy. “Budgeting Basics – Setting Up A Budget Investopedia.” Investopedia, N.d. Web. 03 Nov. 2014
Fuller, John. “10 Tips for Saving Money in College – HowStuffWorks.” HowStuffWorks, N.d. Web. 03 Nov. 2014
Guillot, Craig. “A Tightwads 10 Tips to Trim Car Costs.” A Tightwads 10 Tips to Trim Car Costs, Bankrate, n.d. Web. 03 Nov. 2014.
Ramsey, Dave. “10 Things Americans Waste Money On.” Daveramsey.com, N.d. Web. 03 Nov. 2014.
Zelman, Kathleen M. “12 Ways to Save Money on Food Shopping.” WebMD. WebMD, N.d. Web. 03 Nov. 2014.
The first step in setting up a budget and finding ways to save is to understand how money is being spent. Simply recording expenses in some way is the beginning step to recognizing how money is being spent. Many options such as Mint.com, Quicken, or even free apps work great. The key is to keep up with spending and to diligently record transactions on a regular basis. Once the expenses are recognizably categorized and recorded, it is essential to point out spending habits that need to be changed. To understand how to better spend and save their money, many Americans turn to Dave Ramsey. Ramsey has become a well-known financial author, radio host, television star, and even gives motivational speeches. According to Ramsey, “We don’t think much about our daily money-wasters…but we need to. There are so many places in our daily routine where money can be wasted” (Ramsey). As we recognize these wasted funds in our regular routines, we can establish a budget.
The very beginning of taking these steps to save money begins with understanding required expenses and forming a budget based upon income and other sources of money. Unfortunately, this understanding takes discipline as most of us enjoy the benefits of our bad spending habits more than the necessary expenses. For example, individuals that continually avoid car accidents month after month usually find little to no satisfaction from paying their insurance each month. Most of the problem is that students feel that a budget will keep spending to only these types of expenses. In some cases this may be true, but budgeting is so much more. According to Investopedia, “Budgeting makes it easier for people with incomes and expenses of all sizes to make conscious decisions about how they’d prefer to allocate their money” (Fontinelle). As it states, perhaps the greatest part of creating a budget is the fact that it enables us to ensure that we spend our money how we wish rather than casually going about our week until we simply run out of money in our bank account. As monthly expenses are accounted for and weekly goals are established, students will recognize that they will enjoy their lives more because prioritizing our spending brings a greater level of gratification at work and at home.
Because a large part of expenses for students come from the actual costs of education, it is important to ensure that all the opportunities to get compensation for these expenses are being taken advantage of each semester so that an optimal amount of our budget can go towards saving or more gratifying types of spending than on education. Educational expenses can include tuition, books, and the added course fees that everyone appreciates paying each semester. The most saving students will experience is getting scholarships. Apply for all scholarships including Federal student grants. Beyond actually getting scholarships, it can be helpful to look for alternative ways to purchase books. Many online resources and even buying used or renting books at the campus bookstore will undoubtedly save hundreds of dollars per year. Finally, although Ratemyprofessor.com will provide the way to select the easiest A grade, the most financially sound decision students will make in selecting classes is avoiding classes with expensive course fees that often times can be avoided. It is important to note, however, that students will want to choose these classes with fees in the case that their work schedule works better with these times and if they make more money working those hours than they will spend over the course of the semester had they chose differently. Some students may argue naively that rent, food, transportation, and other expenses come as a result of education, but unfortunately students will continue with these experiences beyond college.
These necessities most students face can present an equally daunting task of paying for each week, month or semester. Although the expenses may not cost as much per semester as the educational expenses, most find themselves trying to pinch to pay for food or the insurance after they have spent their money on the school costs. Saving on rent will probably boil down to mostly selecting the cheapest housing that is available. Automobiles are another example of choosing an option that may not be the nicest but is probably the best. According to Bankrate, “Conspicuous consumption often leads many to drive fancy cars at the expense of savings, retirement funding and debt management” (Guillot). These fancy new cars that seem so appealing add up as money is lost upon purchase with depreciation, loan interest rates, higher insurance premiums, and beyond. Because rent and car costs often take place at the beginning of the month, most of a student’s funds have been cut to a minimal account balance. Because food is the most important expense left each month, it is vital to ensure that food costs do not exceed necessary amounts. According to WebMD, students and others gone all day will find that “making lunch and taking it with you is a great money-saver” (Zelman). If you still have money left to spend, some of the main expenses are covered in some way for you or you must have a good paying job like summer sales. For you, it is now time to see the maximum benefits available to you as a result of your budgeting by choosing to enjoy your money wherever you wish.
Whether it easily fits in the budget or not, most students will find themselves spending money on hanging out with their friends and dating. For the students that have money left in their budget, group activities and dating can be a great experience of engaging in the things that bring the most joy to those involved. However, for students who are barely making it financially, hanging out with friends or trying to go out on a date means that a lot of time is spent thinking of ways to have fun without spending money, and the rest of the time before the activity is spent feeling social pressure to spend money that isn’t readily available. Editor at Howstuffworks.com John Fuller explained 10 tips for college students to save money. In his article, this time spent with friends is directly focused on as a key to saving money as a college student. Fuller acknowledges that students most surely will spend money to some degree, but Fuller urges students to “ask if any of these places offer student discounts. You can also think of alternative ways to have a good time” (Fuller). Most importantly, find ways to spend money in ways that make you happy, but be aware that being happy can be free and happiness is not measured by the amount of money that was spent.
As a college student, I recognize that none of these steps are easy for college students or anyone else to carryout or follow. However, as students apply these tools to help themselves save on both educational, basic living, and recreational expenses, college students will find that they will either have more money to spend as they wish or at least will owe less upon graduation than they would have had they not changed their spending habits. While some students may already be living all of these principles, most students are not and everyone can benefit from these tools. Although all of the tools mentioned will build upon each other to help a student become financially stable, use of any amount of these tools by a student is better than none.
Works Cited
Fontinelle, Amy. “Budgeting Basics – Setting Up A Budget Investopedia.” Investopedia, N.d. Web. 03 Nov. 2014
Fuller, John. “10 Tips for Saving Money in College – HowStuffWorks.” HowStuffWorks, N.d. Web. 03 Nov. 2014
Guillot, Craig. “A Tightwads 10 Tips to Trim Car Costs.” A Tightwads 10 Tips to Trim Car Costs, Bankrate, n.d. Web. 03 Nov. 2014.
Ramsey, Dave. “10 Things Americans Waste Money On.” Daveramsey.com, N.d. Web. 03 Nov. 2014.
Zelman, Kathleen M. “12 Ways to Save Money on Food Shopping.” WebMD. WebMD, N.d. Web. 03 Nov. 2014.
big spenders
GIna wiberg
editor: robby cannon
College students don’t have a lot of money, most none at all. In fact a survey done by Fidelity in 2013 of 750 college students showed they owed $35,200 in college related debt (Paranada pg. 1). College students seem to be wastefully spending outside of the high price of tuition. I took the time to investigate this issue and target where all this money is going besides the obvious high price of tuition. My goal was to find better ways to save and use my money efficiently as well as help my readers do the same. I have included tips and suggestions to use beneficially.
So we all get that tuition is outrageously expensive and without scholarships or grants that pay for it, tuition can be rough. Take advantage of student loans they have a really low interest rate during enrollment. The obvious, unexpected tip is to use the tuition having paid for effectively by attending class and take advantage of student benefits (Paranada pg.2). Keep track of dates to drop classes so there is no loss of the money from failing or dropping. Buy older used textbooks or borrow if possible to save. If the textbook comes in an international edition this will be cheaper too (‘118 ways to save money in college” pg. 2). Buying a laptop or electronics can be a great investment for school, but be smart about it, use the student discounts if possible and shop around a bit to get the best deal.
Managing money is important to know where the money is going and how it is being spent. For starters, credit cards can add up to huge amounts of debt, but they aren’t always a bad thing. Credit cards can help build credit for buying larger things like a car or a house later on. Discover card is recommended by collegeconfidential.com because it will help build credit (Berry, pg.1) and save money with their cash back rewards. Make sure to pick one with a low interest rate and keep up on bills.
When managing credit cards and debit cards, most don’t realize there are ATM fees, these can add up! (Paranada pg.2) Be smart and know what’s in your account, don’t let it go over to avoid paying unneeded fees. A great suggestion by collegescholarships.org says, “For one month save every receipt of everything in you purchase and take a good look at where most of it went.”(“118 ways to save money in college” pg. 2) I tried this out for myself for a month to see where all my hard earned money is going. The biggest expense for me was 30.5% of my money spent was on rent. A whopping 24.8% of the money I spent was on gas. Food came to 20%. I spent 17.2% on clothes and lastly I included a miscellaneous category set aside for: makeup, TP, toothbrush etc. at only 7.5% this month. Keep a tally of all expenses for a month, this can be very helpful to know where to cut back.
My largest expense was rent, finding a place to stay it can be pretty pricy. Living off campus is much cheaper. Most say they can’t handle sharing a room, but from my experience sharing a room isn’t bad and it’s definitely worth the money saved in the long run! Try to conserve energy on utilities the best you can. In USU’s IPS: energy class, taught by Tonya Triplett last semester, she gave the class a small tip to unplug phone chargers or anything left plugged in , except the few appliances that this is almost unavoidable for, because even if it isn’t being used it is still using energy. Why? Because American’s throw away $443 billion in wasted energy a year! (Muniz pg. 1) This is a HUGE waste of money!
The location and energy conservation can save money on rent and utilities, however, gas expenses can really add up going from class to home to work to your parents to your friends/significant other’s and back to class. Not to mention all the parking fees. This is where I find myself spending the most money, I swear that stupid tank won’t stay full. Take the public transportation system such as the bus or bike /longboard etc. (You can kill two birds with one stone by getting your exercise in for the day!)
Speaking of exercise, when was the last time you used your gym membership? International Health, Racquet and Sports club Association said that “gyms sell their memberships with the expectation that only 18% of people will use their membership on a consistent basis?” (Muniz pg. 3) So that means 82% of people with memberships aren’t getting their money’s worth. This is another place where money can be hugely wasted, so cancel that membership and go to the free fitness facilities and activities the university offers.
The university offers other activities besides the gym, some of these can be great activities for dates. When it comes to dates there are plenty of cheap and even free options! Most places offer student discounts so don’t forget to pull out that ID and save a few dollars. Take advantage of school events and activities, usually there is free food involved, therefore making everyone happy.
We all love activities and food. Food that’s right is another expense that just gets eaten up. Of course a great way to save money is to make meals at home instead of going out to eat all the time. When grocery shopping, I use the oldest tip in the book for a healthy lifestyle and to help my bank account, ‘Don’t go grocery shopping hungry!’ This helps avoid buying anything I won’t use especially if it’s expensive produce. According to USA today.com American’s waste 165 billion dollars each year in wasted snacks and meals (Muniz pg. 1). Don’t contribute to this statistic. Buy cheap, filling foods like oatmeal, yogurt, peanut butter, canned soup, top ramen, eggs, and my new favorite pretzels. These foods will go a long way while still maintaining healthy habits.
Food for some is a weakness, we all have some type of weakness. For some that vice can really hurt the monthly paycheck. People who take regular coffee trips add up to about $1,092 a year. (Muniz pg.3) Low income smokers spend a fourth of their income on cigarettes. (Muniz pg.3) However, arguably the biggest for college students would be alcohol. College students collectively spend about 5.5 billion dollars annually (“118 ways to save money in college” pg. 2). We just have to decide if it’s worth the expense in the long run.
Staying away from vices and the things we really don’t need will always help. There are always more ways to cut back and make the money go the furthest. After keeping track for myself, I can see there is so much more we as college students can be doing to make this savvy change. Don’t be the typical wasteful college student. Managing money is important in the way you spend it on food, gas, textbooks or gym memberships. As we can see there are ways to use it efficiently. Taking advantage of student discounts and school activities is smart while being able to have fun and be involved. Be smart and use these tips!
Works Cited
Dave Berry, “Is your college student wasting money?” Collegeconfidiential.com, n.d. n.p. Web. 10/28/14
Katherine Muniz. “20 ways Americans are blowing their money”. USA Today.com March 24, 2014 n.p. Web. 10/28/14
Daryl Paranada, “10 ways college students waste money”. Huffingtonpost.com posted: 3/27/14 updated: 5/27/14 Huff Post Financial education. Web. 10/28/14
Unknown author. “118 ways to save money in college”. Collegescholarships.org. n.d. n.p. Web. 10/28/14
So we all get that tuition is outrageously expensive and without scholarships or grants that pay for it, tuition can be rough. Take advantage of student loans they have a really low interest rate during enrollment. The obvious, unexpected tip is to use the tuition having paid for effectively by attending class and take advantage of student benefits (Paranada pg.2). Keep track of dates to drop classes so there is no loss of the money from failing or dropping. Buy older used textbooks or borrow if possible to save. If the textbook comes in an international edition this will be cheaper too (‘118 ways to save money in college” pg. 2). Buying a laptop or electronics can be a great investment for school, but be smart about it, use the student discounts if possible and shop around a bit to get the best deal.
Managing money is important to know where the money is going and how it is being spent. For starters, credit cards can add up to huge amounts of debt, but they aren’t always a bad thing. Credit cards can help build credit for buying larger things like a car or a house later on. Discover card is recommended by collegeconfidential.com because it will help build credit (Berry, pg.1) and save money with their cash back rewards. Make sure to pick one with a low interest rate and keep up on bills.
When managing credit cards and debit cards, most don’t realize there are ATM fees, these can add up! (Paranada pg.2) Be smart and know what’s in your account, don’t let it go over to avoid paying unneeded fees. A great suggestion by collegescholarships.org says, “For one month save every receipt of everything in you purchase and take a good look at where most of it went.”(“118 ways to save money in college” pg. 2) I tried this out for myself for a month to see where all my hard earned money is going. The biggest expense for me was 30.5% of my money spent was on rent. A whopping 24.8% of the money I spent was on gas. Food came to 20%. I spent 17.2% on clothes and lastly I included a miscellaneous category set aside for: makeup, TP, toothbrush etc. at only 7.5% this month. Keep a tally of all expenses for a month, this can be very helpful to know where to cut back.
My largest expense was rent, finding a place to stay it can be pretty pricy. Living off campus is much cheaper. Most say they can’t handle sharing a room, but from my experience sharing a room isn’t bad and it’s definitely worth the money saved in the long run! Try to conserve energy on utilities the best you can. In USU’s IPS: energy class, taught by Tonya Triplett last semester, she gave the class a small tip to unplug phone chargers or anything left plugged in , except the few appliances that this is almost unavoidable for, because even if it isn’t being used it is still using energy. Why? Because American’s throw away $443 billion in wasted energy a year! (Muniz pg. 1) This is a HUGE waste of money!
The location and energy conservation can save money on rent and utilities, however, gas expenses can really add up going from class to home to work to your parents to your friends/significant other’s and back to class. Not to mention all the parking fees. This is where I find myself spending the most money, I swear that stupid tank won’t stay full. Take the public transportation system such as the bus or bike /longboard etc. (You can kill two birds with one stone by getting your exercise in for the day!)
Speaking of exercise, when was the last time you used your gym membership? International Health, Racquet and Sports club Association said that “gyms sell their memberships with the expectation that only 18% of people will use their membership on a consistent basis?” (Muniz pg. 3) So that means 82% of people with memberships aren’t getting their money’s worth. This is another place where money can be hugely wasted, so cancel that membership and go to the free fitness facilities and activities the university offers.
The university offers other activities besides the gym, some of these can be great activities for dates. When it comes to dates there are plenty of cheap and even free options! Most places offer student discounts so don’t forget to pull out that ID and save a few dollars. Take advantage of school events and activities, usually there is free food involved, therefore making everyone happy.
We all love activities and food. Food that’s right is another expense that just gets eaten up. Of course a great way to save money is to make meals at home instead of going out to eat all the time. When grocery shopping, I use the oldest tip in the book for a healthy lifestyle and to help my bank account, ‘Don’t go grocery shopping hungry!’ This helps avoid buying anything I won’t use especially if it’s expensive produce. According to USA today.com American’s waste 165 billion dollars each year in wasted snacks and meals (Muniz pg. 1). Don’t contribute to this statistic. Buy cheap, filling foods like oatmeal, yogurt, peanut butter, canned soup, top ramen, eggs, and my new favorite pretzels. These foods will go a long way while still maintaining healthy habits.
Food for some is a weakness, we all have some type of weakness. For some that vice can really hurt the monthly paycheck. People who take regular coffee trips add up to about $1,092 a year. (Muniz pg.3) Low income smokers spend a fourth of their income on cigarettes. (Muniz pg.3) However, arguably the biggest for college students would be alcohol. College students collectively spend about 5.5 billion dollars annually (“118 ways to save money in college” pg. 2). We just have to decide if it’s worth the expense in the long run.
Staying away from vices and the things we really don’t need will always help. There are always more ways to cut back and make the money go the furthest. After keeping track for myself, I can see there is so much more we as college students can be doing to make this savvy change. Don’t be the typical wasteful college student. Managing money is important in the way you spend it on food, gas, textbooks or gym memberships. As we can see there are ways to use it efficiently. Taking advantage of student discounts and school activities is smart while being able to have fun and be involved. Be smart and use these tips!
Works Cited
Dave Berry, “Is your college student wasting money?” Collegeconfidiential.com, n.d. n.p. Web. 10/28/14
Katherine Muniz. “20 ways Americans are blowing their money”. USA Today.com March 24, 2014 n.p. Web. 10/28/14
Daryl Paranada, “10 ways college students waste money”. Huffingtonpost.com posted: 3/27/14 updated: 5/27/14 Huff Post Financial education. Web. 10/28/14
Unknown author. “118 ways to save money in college”. Collegescholarships.org. n.d. n.p. Web. 10/28/14
tuition: expense or investment
thomas magnuson
editor: morgan ashcraft
As a college student I often ask myself if college is worth the amount I pay for. I assume many others feel this same way. Often I hear that graduates are obtaining insane amounts of debt once they graduate. So I looked into it and found a study Forbes recently did, it says average student debt after graduation is reaching $30,000 per graduate (Forbes). This puzzles me, why go to college if you’re going to put yourself in debt to do so. As a college student myself I understand that many college students wonder this same thing. From one student to another I am going to go over the pros and cons of going to college. I may not be able to decide for you if you should be going to college or not, but hopefully I can give you the knowledge to decide this for yourself.
Why do we go to college in the first place? For myself, and many others that I know; I’ve gone to college because I want to be able to give myself the finest life possible. I want to get the greatest job I can and live a comfortable life one day. Statistics show that the average college graduate will earn $800,000 more than just the high school graduate (Slate). That is a tremendous amount of money! Looking at that it makes going to college all that more worth it. It is also stated that every year you are graduated your income will increase. This sounds pretty good to me. I also stated one of the reasons I am attending college is so that I can get the best job possible. There is an economic theory that tells us why college is so worth it. It is called the signal theory; this theory says that it is not what you learn in college that is what gets you the job, but the fact that you attended college. An employer knows that you are dedicated and willing to work just from the degree you earned. It says a lot about a person, it says that you were willing to put in the work and that same effort will carry over to your career. This to me really seems motivating to finish my college career and obtain my degree.
Another way we can look at going to college is as an investment to our future. In reality this is exactly what going to college is, an investment for your future. It may seem like quite a bit; In the 2013/2014 school year the average college tuition and fees was $30,000 (Forbes), and it is a ton of money to have to pay right up front. At the time this can seem very overwhelming and not worth the money, time, and effort. However this is why we need to remember that this is an investment. Any investment takes time, but if you are patient then the pay off can be grand.
According to (Slate) on average if you attend a 4-year university you will retain your investment by the time you turn 38. This means if you graduate around the age of 24, then it will only be 14 years later when you get that money back. Once you retain that money the money you begin to make starts to double.
Also there is a difference in the unemployment rate between the people who have gone to college and the ones who have not. Right now the unemployment rate for no college is 7.5% and the unemployment rate for those with a college degree is only 4% (Business Week). This means that if you are out of work and looking for a job, your chances of getting a job are a lot better just because you have a college degree. Also if you are working for a company that is letting people go, you have a better chance of not being the one let go. This also depends on the amount of schooling that you have obtained. Even just earning some college can be a big benefit to you. If you continue your education, such as deciding to go to graduate school, then you are benefiting even more. It’s like your investing into more than just one thing (such as the stock market), the more things you invest in, the better the chance of a greater return you will have in the end. Going from a bachelors degree to a masters degree will automatically double your average income. The average income for no college is $28,000, and then if you decide to go to some college this increases to $34,000. If you continue and obtain your undergraduate degree then your average income increases to $46,000. So you see the increase, but the big increase comes with a graduate degree where the average income becomes $86,000. Wow that is a tremendous income increase. So as you can see it depends how much you want to invest into your career.
As you have now seen it would seem that college is a no brainer, the amount you are making back is going to outweigh not going. However college tuition is increasing at an insane rate, it surges almost every year. Depending on how motivated you are this may or may not matter. If you can efficiently be the type of person that cruises through school, then it would seem that college is the right choice. If you’re not the most motivated student however, this may not be the best decision for you. If you’re taking more than four years to graduate then you are dropping more money every additional year. Say you slack for the first two years and then end up dropping out anyway, this can be a huge waste of an investment, you could have made money in the time you were slacking in school.
As I stated before the average college debt is $30,000 per student. Is this worth it for you? That is a question you need to ask yourself. Another thing to look into is the degree you are obtaining. Does this degree have a good job outlook, and what is the average salary for this career. If the outlook for your degree is not good, then college can be a waste of time and money. I once thought I would major in journalism, until I was enlightened about their salary. I did not realize that journalism is a somewhat dying industry. I have since gone with a different major. If you’re not worried about this, and college is the only way to do what you want, then do what you need to obtain that degree.
I hope that I have given you some knowledge and enlightenment to decide for yourself if college and the tuition you will have to pay are worth it for you. Look into to it for yourself and also ask yourself if it will truly be worth it for you, individually. Distinguish what kind of individual you are now and also what kind of individual you want to become one day. If you can do this then there is no doubt that you will know if college is right for you or not. It may seem like an outrageous amount of money now, and it may be, but you have to remember that this is an investment to your future. If you can look at it this way, it may not seem so bad, so enjoy it and good luck.
Works Cited
Forbes. Forbes Magazine, n.d. Web. 17 Nov. 2014. <http://www.forbes.com/fdc/welcome_mjx.shtml>.
http://www.businessweek.com/articles/2014-07-15/is-college-worth-it-some-high-school-grads-earn-more
"Skipping College Can Cost You $800,000." Slate Magazine. N.p., n.d. Web. 17 Nov. 2014. <http://www.slate.com/blogs/moneybox/2014/05/05/is_college_worth_it_a_federal_reserve_study_on_earnings_and_tuition_costs.html>.
washingtonpost.com/blogs/wonkblog/wp/2013/08/27/the-tuition-is-too-damn-high-part-ii-why-college-is-still-worth-it/
Why do we go to college in the first place? For myself, and many others that I know; I’ve gone to college because I want to be able to give myself the finest life possible. I want to get the greatest job I can and live a comfortable life one day. Statistics show that the average college graduate will earn $800,000 more than just the high school graduate (Slate). That is a tremendous amount of money! Looking at that it makes going to college all that more worth it. It is also stated that every year you are graduated your income will increase. This sounds pretty good to me. I also stated one of the reasons I am attending college is so that I can get the best job possible. There is an economic theory that tells us why college is so worth it. It is called the signal theory; this theory says that it is not what you learn in college that is what gets you the job, but the fact that you attended college. An employer knows that you are dedicated and willing to work just from the degree you earned. It says a lot about a person, it says that you were willing to put in the work and that same effort will carry over to your career. This to me really seems motivating to finish my college career and obtain my degree.
Another way we can look at going to college is as an investment to our future. In reality this is exactly what going to college is, an investment for your future. It may seem like quite a bit; In the 2013/2014 school year the average college tuition and fees was $30,000 (Forbes), and it is a ton of money to have to pay right up front. At the time this can seem very overwhelming and not worth the money, time, and effort. However this is why we need to remember that this is an investment. Any investment takes time, but if you are patient then the pay off can be grand.
According to (Slate) on average if you attend a 4-year university you will retain your investment by the time you turn 38. This means if you graduate around the age of 24, then it will only be 14 years later when you get that money back. Once you retain that money the money you begin to make starts to double.
Also there is a difference in the unemployment rate between the people who have gone to college and the ones who have not. Right now the unemployment rate for no college is 7.5% and the unemployment rate for those with a college degree is only 4% (Business Week). This means that if you are out of work and looking for a job, your chances of getting a job are a lot better just because you have a college degree. Also if you are working for a company that is letting people go, you have a better chance of not being the one let go. This also depends on the amount of schooling that you have obtained. Even just earning some college can be a big benefit to you. If you continue your education, such as deciding to go to graduate school, then you are benefiting even more. It’s like your investing into more than just one thing (such as the stock market), the more things you invest in, the better the chance of a greater return you will have in the end. Going from a bachelors degree to a masters degree will automatically double your average income. The average income for no college is $28,000, and then if you decide to go to some college this increases to $34,000. If you continue and obtain your undergraduate degree then your average income increases to $46,000. So you see the increase, but the big increase comes with a graduate degree where the average income becomes $86,000. Wow that is a tremendous income increase. So as you can see it depends how much you want to invest into your career.
As you have now seen it would seem that college is a no brainer, the amount you are making back is going to outweigh not going. However college tuition is increasing at an insane rate, it surges almost every year. Depending on how motivated you are this may or may not matter. If you can efficiently be the type of person that cruises through school, then it would seem that college is the right choice. If you’re not the most motivated student however, this may not be the best decision for you. If you’re taking more than four years to graduate then you are dropping more money every additional year. Say you slack for the first two years and then end up dropping out anyway, this can be a huge waste of an investment, you could have made money in the time you were slacking in school.
As I stated before the average college debt is $30,000 per student. Is this worth it for you? That is a question you need to ask yourself. Another thing to look into is the degree you are obtaining. Does this degree have a good job outlook, and what is the average salary for this career. If the outlook for your degree is not good, then college can be a waste of time and money. I once thought I would major in journalism, until I was enlightened about their salary. I did not realize that journalism is a somewhat dying industry. I have since gone with a different major. If you’re not worried about this, and college is the only way to do what you want, then do what you need to obtain that degree.
I hope that I have given you some knowledge and enlightenment to decide for yourself if college and the tuition you will have to pay are worth it for you. Look into to it for yourself and also ask yourself if it will truly be worth it for you, individually. Distinguish what kind of individual you are now and also what kind of individual you want to become one day. If you can do this then there is no doubt that you will know if college is right for you or not. It may seem like an outrageous amount of money now, and it may be, but you have to remember that this is an investment to your future. If you can look at it this way, it may not seem so bad, so enjoy it and good luck.
Works Cited
Forbes. Forbes Magazine, n.d. Web. 17 Nov. 2014. <http://www.forbes.com/fdc/welcome_mjx.shtml>.
http://www.businessweek.com/articles/2014-07-15/is-college-worth-it-some-high-school-grads-earn-more
"Skipping College Can Cost You $800,000." Slate Magazine. N.p., n.d. Web. 17 Nov. 2014. <http://www.slate.com/blogs/moneybox/2014/05/05/is_college_worth_it_a_federal_reserve_study_on_earnings_and_tuition_costs.html>.
washingtonpost.com/blogs/wonkblog/wp/2013/08/27/the-tuition-is-too-damn-high-part-ii-why-college-is-still-worth-it/
