With summer winding to a close many families are beginning the annual back-to-school trek with cars loaded down with dorm room goodies and eager college-bound students. College is one of the more exciting phases of young adulthood, but unfortunately it has also become one of the most expensive. Opportunities abound on college campuses to separate you and your money, and being a frugal college student can be potentially damaging to your social life. Here are a few strategies for getting off on the right frugal foot without being the resident party-pooper.

Student Loans

With rising tuition costs making a college degree as expensive as a small home, many families are turning to student loans to finance education. I’ve heard many families express that student loans are the “only option,” and when I was heading off to school I felt the same way. However, hindsight has helped to change my views on student loans, and recognize that there are other options.

First of all, loans may not be required if you opt to attend an in-state, public institution. It may not be the college you dreamed of attending as a kid, but chances are it is more than adequate in terms of the educational opportunities offered. I chose to go out of state myself, and that single decision added thousands to my tuition that could have been avoided by staying closer to home.

Room and Board

College dorms are not exactly known for four-star lodging, but are often much cheaper than off-campus housing and typically include a meal plan. Speaking of meal plans, if you are the type who just refuses to eat anything cooked in a cafeteria you may do better to skip the meal plan and load up on Ramen noodles. Just remember, there is a trade off for eating on the cheap–your health. Unless you want to experience the “Freshman Fifteen,” or worse, I’d recommend sticking to the meal plan and eating a variety of fruits and vegetables with each meal, as a rule. Easier said than done with no less than seventeen pizza places within five miles of campus! And believe me, I made my share of late-night runs to Taco Bell!

Later in your matriculation you may find that joining up with roommates to split the costs of an off-campus apartment is cheaper than staying alone. If you go this route, be sure to fully investigate individual college housing contracts so you aren’t on the hook for a roommate who has a change of heart and goes home half way through the semester.

A Word About Credit Cards

Next to football fans, the loudest group you will find on your campus may be those soliciting credit card applications. If I should ever be in charge of a school one day (not likely) one of the first things I would do is end the agreement than allows credit card companies to sign up students on my campus in exchange for a free t-shirt. I don’t think credit cards are evil, but I do think they should be avoided in college. Don’t fall for the “you need to build your credit” sales pitch–there will be plenty of time for that later when you have a solid job and can afford to repay your debts. Because I was strapped for cash while away at school I accepted a credit card to fund “life expenses” such as groceries, gas, and occasionally the utility bill! I left school with a free t-shirt and a pile of debt as souvenirs.

Entertainment

One of the perks of being around a college campus is that there are no shortages of opportunities for free or low-cost entertainment. Check out bulletin boards and websites at student unions or near the campus bookstore to stay up on the entertainment offerings around campus. Many times schools will offer free outdoor movies, or guest speakers. When my wife (then girlfriend) and I were in college our first date was attending a motivational talk by the real life subject of the movie Rudy, Dan “Rudy” Ruettiger. As a football junkie, and a sucker for a motivational talk, this was right up my alley. I knew my wife was “the one” when she agreed to wait nearly two hours for a chance to meet “Rudy” and get my book autographed.

Keep your college ID on you when out and about your college town. Many stores and restaurants offer a nice discount to college students, especially around back to school shopping times when students are loading up on textbooks and other supplies.

Start a Savings Plan

One of my favorite lines from a great Chinese proverb reads, “The best time to plant a tree is twenty years ago.” As I sit here some thirteen years after my freshman year of college it is easy to play the “what if” game. What if I had started saving a little money all those years ago. I spent most of my college years broke, and working just to keep the lights in my apartment on and gas in my tank. At the time the last thing on my mind was trying to save money. After all, how much could I have really saved? Open a savings account and try to save 10% of any earnings, or $5 a week, or $25 a month. Don’t be overly concerned with the amount you are saving, just start saving something, consistently, to reinforce the idea that saving money is a good habit to develop at a young age.

Early Frugal Living

It is difficult when you are young to fully appreciate the benefits of living frugal. However, many special life events will likely occur in the decade after graduation. Most of you will get married, start a family and a new career, and maybe even buy your first home. Resist the temptation to saddle yourself with debt during your college years so you can enjoy these life experiences debt free.

Other “Back to School” Series Articles from The Life Skills Network:

• College Housing Contract Basics
• Back to School Savings Challenge
• 17 Good Habits for Successful Life
• Back to School Season Already? Keep the Family a Priority

Other “Back to School” Series Articles from The Money Writers:

• 10 College Money Myths
• How To Be A Frugal College Student
• College Student Money Guide: Financial Tips For Student Success
• Going Back to School? Here Are Some Tips That Helped Me
• College Student Finance Tips
• Upromise Survey: Saving For College, Getting Tougher?

photo by hyku

*This photo is nearly identical to the view from my freshman dorm room

My college matriculation is best summed up by the famous line from Robert Frost’s The Road Not Traveled, “I took the one less traveled by, and that has made all the difference.”  I guess you could say I got a well-rounded education, because I bounced around three different schools and several majors before finally finishing up the process online. My only regret from the whole experience was that I didn’t pursue the online degree opportunity earlier.

Pre-Medicine Requires Too Much Chemistry

For as long as I could remember I wanted to be a doctor.  It seemed natural, and I had a genuine desire to want to help people.  So, I enrolled my freshman year declaring pre-medicine as my intended path of study and away I went.  Two years into the program, and six chemistry courses later, it all became rather overwhelming.  I had officially reached burnout with several years of school, medical school, and residency to go.  Being the practical personal I am, I realized I wasn’t going to stay motivated all the way through, and accepted the change of heart.

After a short stint as a physical therapy major, and after seeking out an athletic training internship, I decided my heart just wasn’t in medicine anymore.  Good thing I recognized this when I did–just imagine the money I could have wasted pursuing something my heart was no longer in.  A death in the family brought me back home about half way through my third year.  I decided to go to work, and eventually married my college sweetheart, and less than two years later we had our first child.

School, Family, and a Full Time Job

The birth of my daughter inspired me to get back in school and finish my education.  I recognized my career opportunities and earnings potential were somewhat limited by the fact that I had not finished my undergraduate degree.  I enrolled at a nearby college, and thanks to a change in majors, transferring from the quarter system to the semester system, and going to school in different states, I practically had to start over.  And so I began a long, painful process of attending school at night from 6:00pm-10:00pm, Monday through Thursday, while working full time 8:00am-5:00pm and missing my newborn daughter and my wife terribly.  It was an exhausting time.

I kept up the pace for a couple years before a job relocation took me away from that local university, just a couple semesters shy of graduation.  A friend recommended I check out an online program offered by another local school.  He knew I was sick of being a “traditional,” in-class student because it kept me away from my family.  At the time online degree programs were relatively new on the scene, and I was a little skeptical.  I decided to look into it and I am sure glad I did.

The Benefits of an Online Education

There are many reason to finish your degree online.  For a husband and father of two working full-time I needed something with maximum flexibility.  Online education provided the ability to work around my job and family schedules while pursuing the exact same degree as those poor souls stuck in a classroom until 10:00pm.  The online degree program also forced me to upgrade technology, and stay on top of new web-based applications (something that later helped in my career).

Is an Online Degree Right For You?

Continuing your education online requires a greater degree of discipline than attending school in a traditional setting.  All interaction with professors and classmates will be done virtually, usually via online chats, forums and email exchanges.  One of the main complaints about online degree programs is that you miss that social interaction sometimes required to fully grasp a new concept.  Professors will not be able to spoon-feed you information for exams.  When I attended a university full time professors made a point of emphasizing which areas of the text were most important, and often repeated contents of their lecture (a signal to write it down, because it would likely be on the test).  In an online environment you are often told to read pages 145-227 and expect any material contained to appear on the midterm.  It was up to you to figure out what was most important, and what would most likely appear on the exams.  It was an adjustment, but a good lesson in ignoring fluff and focusing in on what was most important.

Compare Top Online School Programs At AllOnlineSchools.com Today

I’d be interested to hear some of your experiences with an online degree.  Please feel free to share your story in the comments section below.

Grandparents have a unique way of spoiling their grandkids. I can’t say much; my grandparents doted on me quite a bit when I was young. Now that I am a father, I can certainly understand why. But in our efforts as parents and grandparents to give our kids everything they could ever want, we are missing out on an important gift-giving option - one that will mean more to them in ten or fifteen years than any toy or video game.

I Want My 529

College savings plans, particularly 529 plans, are becoming a popular alternative to Wii games and Barbie dolls, and for good reason. By starting early, and pooling family contributions, families just might be able to keep pace with ever increasing college tuition costs. Since parents typically shoulder the majority of day-to-day expenses of child-rearing and saving for their own retirements, it is difficult for them to also come up with contributions to children’s college savings plans. That’s where grandparents can help. By forgoing a few wrapped presents at birthday parties and Christmas, grandparents can make contributions to their grandchildren’s college savings plans.

Freshman Fund

Several organizations are cropping up that allow parents, friends and grandparents to contribute directly to a child’s 529 plan. One of the more promising startups is Freshman Fund, a site that allows parents to create an online profile for their children and link the 529 plans they are currently funding. Friends and families may then make direct contributions to the child’s account at freshmanfund.com, and the funds are deposited directly into the child’s linked 529 plan. This sort of “team savings” concept is a popular one on the web today.

Another benefit of this approach is that no cash has to be exchanged between grandparents and parents “earmarked” for college savings. Parents may be tempted to spend the money on something else, and grandparents may be worried about this temptation. This direct approach allows family members to contribute directly to the child’s fund without going through another family member.

Instead of piling on present after present, consider making contribution to a child’s education savings fund. The benefits of education far outweigh the effect of a toy or game, and you’ll be helping parents by taking some of the financial burden of college savings off them.

photo by Spigoo