Posts filed under 'Budgeting'
Do you ever feel your math classes aren’t going to be useful after graduation? Sometimes I wish that everything I learned in algebra and calculus could have helped me come up with a formula where nobody had to worry about paying for college.
And students are facing more financial stress these days. Maybe a parent lost a job this year, which can deflate tuition savings, as 80 percent of college students are financially dependent on parents. Or a part-time job isn’t panning out because the company doesn’t have the money or the business to keep you on staff.
All this, plus the stock market woes, has caused 95 percent of college students to say the nation’s economic crisis impacted their family’s finances last year, and 93 percent have seen an effect on their own bank account, according to a new survey by the National Endowment for Financial Education. As you might already know, financial stress could have an impact on your relationships, health, and overall well-being.
If you’re feeling less than financially confident, talk to your parents about what you’re feeling, what their bank account or college savings plans are looking like right now, and ways you can work harder to pursue scholarships and financial aid.
Here are three other things you can do:
1. Put yourself on a budget: The study discovered a 3 percent increase in budgeting by students who felt the greatest impact from the crisis. But it also found a 60 percent increase in credit card debt and a 26 percent increase in students using one credit card to pay off another. Splurging on outfits for frat parties or those late-night pizza orders can add up.
2. Resist the urge to drop out: The study found a 169 percent increase in the students dropping classes and an 106 percent increase in students taking a leave of absence from school. It may just be harder to return once you’ve been away for a while.
3. Educate yourself: Even learning the definitions of financial terms could be a huge help as they become a regular part of your college vocabulary.
–Lori Johnston
February 11th, 2010
A whopping $168 billion is available in federal aid for college, so whip out those applications (if you haven’t already) and start working to get a chunk of that money.
If you’re in the midst of the nearly 130-question FAFSA (Free Application for Federal Student Aid), take a deep breath and relax for a moment. Whew. Then check out these 12 mistakes that students and parents often make, according to the National Association of Student Financial Aid Administrators.
1. Leaving blank fields. Enter a 0 or “not applicable” instead. Too many of these can cause miscalculations in how much aid you get and could get your application rejected.
2. Listing incorrect Social Security number or driver’s license number. It seems silly, but check these entries and have someone else check them too. One typo could be all it takes.
3. Forgetting to list the college. Look up the Federal School Code for the college you plan on attending, as well as any other schools that have your applications.
4. Entering the wrong amount of federal income tax paid. Look at your income tax returns, not your W-2 forms, to find how much you paid in federal income tax.
5. Listing Adjusted Gross Income (AGI) as equal to total income: Surprise – it’s not the same figure. AGI often is larger than the total income.
6. Listing marital status incorrectly. Choose “yes” if you’re married right now. The feds only want to know what your marital status is on the day you sign the application.
7. Listing parents’ marital status incorrectly. You’ll need to provide the custodial parent’s marital status, too. Also include the stepparent’s information if they’ve remarried.
8. Leaving the question about drug-related offenses blank. A conviction might not disqualify you from receiving aid. If you’re unsure about an offense, find out before you submit your form instead of leaving it blank.
9. Using commas or decimal points in numeric fields. Round to the nearest dollar instead.
10. Forgetting to sign and date. Remember to sign the paper FAFSA. If filing electronically, be sure to get your PIN, which will serve as your electronic signature.
11. Entering the wrong address. Your permanent address is where you live when you won’t be at college; i.e. your parents’ house, not your campus or summer address.
12. Sending in a copy of your income tax returns. You don’t need to provide a copy of your tax returns with your application, so save time and trees by skipping this step.
–Lori Johnston
January 21st, 2010
The holiday season is almost upon us. Just as The CollegeBound Network strives to make your college search a bit easier, we’ve worked to make your holiday shopping less stressful, too.
Coming at you today is our 2009 Holiday Gift Guide. We’ve combed through some of the coolest gadgets, gizmos, garb, and more to make your holiday the happiest and merriest it can be. Best of all? You don’t have to blow too much cash on any of these choices—all our suggestions are under $50, with some gifts for as little as three bucks. Grab one for a friend or family member and one for yourself, too! Be sure to check out our sister blog, CollegeSurfing, for holiday gift ideas for adult students in your life. Happy shopping!
You may have remembered to bring your phone charger, but what if you can’t find an electrical outlet to plug in? With YoGen®, you don’t have to worry. By repeatedly pulling on the attached cord, which slides in and out like a yo-yo string, this nifty little gadget manages to work up enough energy to charge your cell phone, iPod, and other tech devices. The device is smaller than a computer mouse and is covered in a clear plastic shell, so you can see the “magic” happen. It’s the perfect tech gadget for all of your eco-friendly friends. You can snag it for $39.99 at www.yogenstore.com; it will be available in retail stores mid-2010.
Continuing with the timeless yo-yo tradition, check out YOYO Lip Gloss Minis. Clip a retractable lip gloss to your bag or pants pocket and have easy access to moist lips, without the worry of losing the tube in the depths of a purse or school bag. Lip gloss flavors include Big Bounce Bubblegum, Cha Cha Chocolate, Girly Green Apple, and Kissable Kiwi—at just $2.99 a pop, we don’t mind springing for all four. www.yoyolipgloss.com.
Monkeys are funny. Having monkey butt…not so much. Anti Monkey Butt® Powder is a thoughtful gift for your athletic friends who complain of having “monkey butt”—a sore, itchy, sweaty, red butt incurred from exercise-induced friction—after a long team practice. Heck, you might have monkey butt from sitting in class all day, too! Sprinkle some of this calamine-and-talc concoction in footwear, under sports equipment, and anywhere else that chafes and you’ll be good to go. The ladies will enjoy Lady Anti Monkey Butt® Powder, which comes in a pink bottle and is also known for soothing legs after a shave. At $5.95 for a six-ounce bottle, this is one stocking stuffer that won’t chafe your wallet. You can get it at www.antimonkeybutt.com, naturally.
The new year is a great time for making resolutions regarding the gym. Help a friend or family member get off to the right start with Jillian Michael’s Hot Bod in a Box. For just $14.95, you get 50 of the trainer’s signature exercises in a handy flash-card format that can be toted along to the gym or will inspire an at-home (or in-dorm) workout. Available at bookstores both online and offline.
Just because you weren’t alive for the 1980s doesn’t mean you can’t share a part of the awesomeness of that decade. 80sTees.com has a wacky collection of tees featuring video games, bands, movies, TV shows, cartoons, and other cool stuff from the era when MTV actually played music videos. With tons of tees in the $20 range, it’s affordable to be retro. We like the Atari and Ghostbusters tees, and have already asked Santa for the “Nobody puts Baby in a corner” tee in honor of Dirty Dancing.
Speaking of Atari, here’s a fun AND eco-friendly way to celebrate your love of the 80s. Designer Niles Zwolak presents the Atari Cartridge Wallet, a fully functional wallet made out of a repurposed Atari game cartridge. How cool is it to stow your cash and debit card in an old Asteroids cartridge? Wallets with a text label on them are $35 and wallets with a picture label are $55. We’d be willing to go over budget by $5 to own a Pac Man or Space Invaders wallet. Head on over to www.nilesz.com to see dozens of other options.
Sports Illustrated ranks among the sports journalism elite, so Sports Illustrated: The Football Book (Expanded Edition, Sports Illustrated Books) is a no-brainer for the football freak on your list. At only $29.95, this gorgeous hardcover book makes a nice addition to any coffee table—but it will work on a crate in a messy dorm room, too. This impressive volume is full of well-written articles and spectacular photos of action on the gridiron. Available at a bookstore near you.
Do you know someone who is wooed by the flashy lifestyle of Las Vegas a la Ocean’s 11? Let them discover the real deal with Under the Neon Sky: A Las Vegas Doorman’s Story by Jay Ranking ($14.99, Jay Ranking Publishing). After six years as a doorman at MGM Grand, Ranking knows a thing or two about the “grit behind the glitz” in Sin City. It reads like a novel, but it’s all true, baby. Check it out at www.jayslasvegas.com.
Trader Joe’s might be a gourmet grocer, but its low prices make this store a favorite on the list of many a foodie. If you know a Trader Joe’s junkie, you’ll want to get them Cooking with All Things Trader Joe’s by Deana Gunn & Wona Miniati (Brown Bag Publishers, $29.95). This book is filled to the brim with recipes—all based on the yummy and unique foods found in Trader Joe’s—that were written for people who like good food, but don’t have a lot of time to cook it. Got more than one aspiring chef to buy for? Opt for The Trader Joe’s Companion: A Portable Cookbook, a slimmer collection of favorite recipes by the same authors that is just $13.95. Find it at a bookstore near you.
You already know that Netflix is the way to roll when it comes to watching movies and TV shows, but did you know that for just $8.99, you can start someone off on a monthly subscription that allows home delivery of DVDs plus UNLIMITED streaming of movies and TV episodes directly to their computer? Now that the winter is here, this is a perfect way to help your friends plan a cozy night in. www.netflix.com.
Do you have a friend who feels out of the loop when people start tossing around quotes from famous movies? Help them get up to speed with Reel Culture by Mimi O’Connor (Zest Books, $15.95). This awesome little book has the summaries of 50 classic movies of the 20th century—from Gone with the Wind to Goodfellas—along with a ton of trivia and quotes. Even movie buffs will appreciate the wide range of flicks that made the cut in this book. You might want to pick up an extra copy at the bookstore—one for you and one for a friend.
News flash: being a student can be really stressful. From studying to papers to endless club meetings, it’s enough to make you scream. And now you can let it all out without scaring your family or college roommate. The Screaming Pillow ($19.95) will help that stressed-out person on your list achieve sanity. The pillow has a colorful, screaming face on one side, and on the other, a dotted circle and the gentle instructions: “When you just have to let it out…place face here and SCREAM!” Enough said. www.screamingpillows.com.
Even if you are trying to avoid buying “useful” gifts for the people on your list, your girlfriends will definitely appreciate this shopping choice. The Racktrap is the perfect solution for females who need to carry the essentials, but either don’t have pockets or a purse to store them in. The one-size-fits-all bra pocket allows women to store cash, a credit card, and a photo ID for safekeeping. Celebs like Cindy Crawford, Wendy Williams, and Dolly Parton—who can probably store a lot more than a credit card—are fans of The Racktrap. Buy one for $7.95 or splurge on the Fashion 4-Pack– including pockets in black, white, and nude lace, as well as a sweat-proof blue one for your sports bra—for just $19.95. www.theracktrap.com.
The ponytail has always been the hairdo of choice for busy women on the go. But finding a hairband when you’re busy can be a bit of a chore. The problem is solved with Buji Baja’s Endless Pony Ball ($18). Reminiscent of the funky rubber band ball found in office cubicles, this nifty timesaver ensures that you will never go without a hairband. A choice of fun colors makes this gift an easy choice for all the ladies on your list. www.hatattack.com
Last but not least is a cool alternative to the tired old gift card. Vivabox is a unique gift that offers the recipient something now and something for later. We like the $29.95 Men’s or Women’s Magazine Vivabox, which contains seven issues of a magazine, plus a gift card for a subscription that can be redeemed at www.vivaboxusa.com.
–Barbara Bellesi
December 7th, 2009
You may think that the private college or university on your list (or maybe in the back of your mind as a dream school) is too expensive. But that may no longer be the case, as some private schools are cutting tuition and offering more financial aid to entice students.
This move is having an impact on public schools, which are having to cut positions and enrollment, as well as make other changes due to state budget cuts. The L.A. Times reports that there’s a growing effort by private schools to use special deals and other efforts to attract quality students as California’s state schools struggle with reduced enrollment.
It’s not just a California trend. I’m aware of other state schools that are seeing private schools snatching up some of their smartest and most accomplished candidates because of hefty financial assistance.
Here’s an idea of some of the offers:
- Florida’s Barry University is offering a 20 percent tuition discount for its adult and continuing education programs if you’re a displaced worker
- The University of San Francisco plans to offer a 50 percent discount on general education classes, beginning in January 2010
The National Association of Independent Colleges and Universities says no student should rule out private higher education because of the published price. It reported in October that schools also are:
• matching public university tuition or student aid programs.
• introducing or expanding programs that replace loans with grants.
• launching three-year bachelor’s degree programs.
• guaranteeing graduation within four years, which saves money.
• offering tuition assistance for laid-off workers.
Those efforts may be working, as total Fall 2009 enrollment at the association’s more than 900 schools is expected to increase, with some schools setting records.
Hopefully you’ll be able to benefit from this, too.
–Lori Johnston
November 17th, 2009
Halloween is coming up in a few short days, and with the box-office battle between Paranormal Activity and Saw VI, there’s no shortage of chills and thrills in sight. So imagine my surprise when I found that the real terror comes from the seemingly tame College Board and its college cost calculator.
WARNING! THE INFORMATION BELOW IS NOT FOR THE FAINT OF HEART. 
Here’s how the calculator works. Let’s say you are gearing up to go to a private college in two years. Plug in the average cost of tuition for a public or private college, along with the rate of inflation, how many years you plan to attend the school, the percent of tuition you will finance from your savings, and how many years you have before you enroll. Then click “calculate.” Try not to scream.
We already know that college tuition costs are climbing, but when you are faced with actual numbers, it can be downright frightening. A friend of mine recently had a baby, and just for kicks, I decided to find out what kind of tuition bill that tiny little newborn would face 18 years from now. The future cost is close to $90,000 a year at a private institution. Creepy.
Try it yourself . . . if you dare.
I hear that the producers of Paranormal Activity are already planning a sequel, but really, they could save the time and trouble by just directing viewers to the College Board’s calculator. Seriously—there’s a reason they call it sticker shock.
The good news is that students rarely pay the full price colleges demand. Scholarships, grants, and loans all help to make the finances more manageable. And just as the oblivious people in horror movies are not alone in their homes, you’re not alone in your struggle to fund your college degree.
College finances giving you nightmares? The CollegeBound Network can help you figure it all out.
–Barbara Bellesi
October 27th, 2009
If you are like most students, figuring out how you’re going to foot the bill has become even more important than deciding which college you will attend. But should your impending tuition bill be the ultimate factor in your big decision?
It is true that college is one of the best investments you’ll ever make—if not THE best. But that doesn’t mean that you have to wind up in the poor house while you wait for that investment to mature. Here are a few important questions to consider as you make your decision:
What is your major? Don’t panic. It’s OK if you have no idea what you want to study. But for those of you who do, make sure you take your future career aspirations into consideration. Want to be a business major? Well, once this economy behaves itself again, you’ll be able to score a good salary coming out of school. Want to become a teacher? It’s an awesome career choice, but know that you’ll never command a Wall Street salary. Plus, most states, if not all, require a master’s degree to remain certified, so grad school is not exactly a choice anymore—and that means loans, loans, and more loans for you.
A paycheck should not sway your passion, but it should give you a reality check. Yes, you might very well have the talent to be the next big thing, but as any E! True Hollywood Story will tell you, even the A-listers had some lean years before they made it big. Check out the Bureau of Labor Statistics—it’s a great source for employment and salary information.
Do you want to attend graduate school? I know, it’s frustrating to think of a second degree when you haven’t even earned your first one. But if grad school is indeed a blip on your radar at this point, then you need to weigh it as an additional cost.
In fact, that’s exactly the predicament I found myself in when I was applying to college. I was accepted to what I believed was my dream school, which just so happened at the time to not award ANY merit scholarships. So I was looking at financing all four years of college. (Note to younger self—what were you thinking?) I knew that grad school was a possibility for me, so I ultimately passed on my first choice and accepted a scholarship offer at another college on my list. To my happy surprise, that college turned out to be my dream school. Sure enough, four years later, I enrolled in grad school, and I was very glad to have fewer undergrad loans to repay.
Are you loving life in your home state? You already know that state schools offer the best bang for your buck—an excellent education with major tuition perks for state residents. But did you also know that some state schools offer even more benefits to those students who remain in the state after graduation? A number of states have noticed a massive exodus of students after graduation, and in order to keep more of those well-educated residents, state universities–and even the states themselves--are offering additional scholarships to sweeten the deal. Some states even have the endorsement of their celebrity residents. Longtime Maine resident Stephen King used his speech to the graduates of the University of Maine to encourage them to make the state their permanent home. So if you enjoy living in your home state and plan on spending some quality time there after graduation, then do yourself a huge favor and check in with the state schools to see if you can cash in on some of that loyalty.
These questions are a good start, but don’t stop there. When it comes to your (and your parents’) hard-earned money, you should have lots of questions about how best to spend it. Got any you can’t answer? Post them in the comment section below.
–Barbara Bellesi
October 8th, 2009
The lines have been out the door; the requests for help have significantly increased in a short period of time; the demand has increased, but the supply has stayed the same. This is the current financial aid climate, as students and parents rush to get their FAFSA in as soon as possible. And the sentiments throughout the education realm all seem to be the same when it comes to financial aid: the earlier you file, the better your chance is to secure some much-needed cash in a downward economy.
“There is a high level of anxiety and desperation at this time,” says Craig Carroll, CEO of Student Financial Aid Services Inc. (SFAS), a company that he says is a “trusted advisor, helping families across America access available financial aid to pursue their dreams.” According to SFAS, they have seen a huge increase in those applying earlier for financial aid. In fact, says Carroll, SFAS saw a 40 percent increase within the first five days of 2009 as compared to 2008. That’s huge. And, since financial aid is distributed on a first come, first serve basis, the financial aid money will disappear a lot faster this year than in years past.
Christopher Penn, Chief Media Officer at Edvisors, Inc., says that students need to jump on completing the FAFSA as soon as they can. “There are a limited amount of funds from Uncle Sam so the free money is going to run out,” he says. “So do it soon and do it correctly. There are lots of ways to make errors, but the easiest way is by not paying attention.” Penn also explains the great increase he’s seen already. He says that Boston University has seen a 41 percent increase in their mid-year financial aid applications, while the University of Arkansas burned through all their scholarship money in just 11 days.
For some, they are aware of the necessity of filling out the FAFSA early. But, the financial crisis doesn’t seem to be affecting students’ decisions to attend college. For instance, Shayla Price is a first-year law student who hopes her education will better her family. She’s been carefully considering all the decisions she makes on a daily basis. “To ensure my family can afford my education, I am searching for scholarships to pay for my expenses,” she says. “I am also spending less on leisure items […] I feel more pressure to take the burden off of my family; I just want better for us. That’s why I’m pursuing my law education.”
Other students are trying to figure out the FAFSA as quick as possible to ensure they can get the most out of their application. Jeff Marcoux is just finishing up his graduate school applications and is stressing out because both he and his fiancé will be attending school in the Fall. “Our decisions for college are not affected by the current economy because we see the value in attending a tier 1 graduate program due to the ROI [return on investment] once we have our graduate education,” he says. “However, we are VERY concerned about finances and how we are going to afford housing, food, tuition, etc. and are hoping that FAFSA will provide us with enough aid when supplemented with part-time work.”
Both Carroll and Penn give similar advice to students who are concerned about the financial aspects of their education. The earlier you apply, the more of a chance you’ll have to score the cash you need to help you through the process. The demand for financial aid continues to increase, but the supply remains the same. This gives students less of a chance to get the funding they need. So go out now and fill out the FAFSA before it’s too late!
Beyond federal aid, be sure to check out some scholarship stories as well:
And for a line-by-line helpful guide to completing the FAFSA, check out Penn’s e-book at FafsaOnline.com.
-Amanda Fornecker
January 22nd, 2009
It’s extremely thrilling to get your first piece of plastic – your very first credit card, that is. But like anything else, you need to learn how to use it properly. What’s the difference between a credit card and a debit card? How can you be sure that you stay out of financial trouble? What are finance charges? There are so many questions that may swirl throughout your mind!
In these economically-troubled times, college students have a lot to worry about. Not only is this a time to choose your business major wisely (or at all?), but it’s when many first learn the value of the credit card. It’s very easy to get into debt and with rising tuition, greater unemployment rates, and the brink of a recession, you may want to make sure your finances are in order.
Enter Extra Credit: The 7 Things Every College Student needs to Know About Credit, Debt & Ca$h by Bill Pratt. If you’ve never had a credit card before you should consider picking up a copy of this. With tips to ensure that you’re as informed as possible, this book may help you stay out of debt and prepare you for the future. One day, you’ll want to buy a house or get a full-time job and having a lot of debt can hurt your chances at getting what you want.
Some important points mentioned by Pratt:
“Your first credit card is like a “gateway drug.” Once you get used to spending more than you make, you want to spend more and more and open additional credit cards just to get by.”
“The average college graduate overestimates their starting salary by 44%. In addition, you will only get to keep about 65%-75% of your paycheck after taxes, insurances, retirement, etc.”
“The problem is that plastic is too convenient. It is too easy to spend more than you realized or wanted to because you were just swiping the card.”
So be sure to get some Extra Credit to increase your credit score when you are outside of the classroom.
-Amanda Fornecker
December 12th, 2008
This week we welcome Robin Levinson, the content editor for CampusCompare.com, as our guest blogger. If you’ve ever considered higher education in Canada, or just wondered what the fuss is about, today’s post is for you.
Many students like to spend a semester studying abroad, while others journey abroad for all of their college degree work. The majority of U.S. students abroad aren’t heading to Europe or some exotic locale, however; they’re traveling to our friendly neighbors to the north, Canada. So what are the perks to getting your bachelor’s in the land of maple syrup, lumberjacks, and hockey?
- Savings: The average tuition in Canada for international students hovers around 15,000 CAD, depending on your program. With the U.S. dollar currently strong, that price tag equates to just under $12,000 a year. Even room and board come at bargain rates. The cost of living in big college towns like Montreal, Toronto, and Vancouver is lower than similarly-sized U.S. cities like Boston, New York City, LA, and Chicago.
- Prestige: McGill University, the #1-rated university in Canada, was voted #12 in the world in 2008, and is often called “the Harvard of Canada.” Close contenders, University of Toronto, Queens University, and University of British Columbia, also have stellar international reputations. On CampusCompare.com, you can search colleges outside of the U.S. and get college info for many schools in Canada.
- Independence: Ask students who dorm there: Canadian college life tends to be a bit more independent than the typical American college dorm experience. The drinking age is 18 in Quebec, Manitoba, and Alberta, and 19 everywhere else. Most students live off campus after their first year, affording them even more freedom. This is not always a good thing: those of you looking for a cozy college experience might feel lost on a big campus living in an apartment. Figure out what you want in a school, and search for colleges that match your lifestyle needs.
- Diversity: Going abroad for college is an eye-opening experience to a new culture and other ways of life. Canada is a multi-ethnic bilingual country. Students who choose schools in Montreal, for instance, will be able to learn or practice French, and benefit from the almost-European character of the city.
Choosing to study in Canada is a big decision, and it is not without its repercussions. Distance is obviously a factor. There is also the added hassle of immigration: Canada requires that you apply for a student-visa if you plan to study for more than six months in the country. So is studying in Canada right for you? Only you can know for sure.
What’s your take on studying abroad? Is it something you’d consider – for one semester, two semesters? The whole endeavor?
– Robin Levinson
December 4th, 2008
You’ve probably heard of charity events where people and companies pledge to donate a certain amount if their participant can swim a mile, win a contest, or finish a marathon. Well, what about a program that awards sponsors’ money to A-students? It’s a very real deal, but is it a good idea?
In business as of November 15, the site GradeFund.com is a social network with a monetary slant. Students from middle school to graduate school can sign up and upload their transcripts every semester for the chance to earn money for their grades. And instead of looking for friends and colleagues to reconnect with, people and companies hop on and search for students and/or subjects they wish to sponsor.
All GradeFund accounts aren’t created equal though. While it may be possible for a student to earn cash for an A in a particular subject — as is the case with students who study veterinary medicine thanks to a subject-only sponsorship by ZooToo.com — many of the users will and do rely upon personal sponsorships. This means you’ll have to either stand out amongst the sea of students (currently estimated at 750) or know a lot of people who are willing to log on and fork over in your pursuit of financial aid.
Of course, there is a catch. GradeFund runs because it collects a five percent fee on all transactions. Considering how many scholarship funds are out there, and how many friends and families you could solicit on your own without the help of a site, we have to wonder, is it worth it?
– Genevieve M. Blaber
December 2nd, 2008
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