financial zen

Very often I come across articles and bloggers writing about saving money in college. It’s beating a dead horse. It’s the same “tried-and-true” advice time after time. It’s written by people on the outside, looking in. Former students. Graduated professionals.

What? Things have never changed? The same rules apply?

I’m sorry to break it to everyone, but people love to generalize the college experience. They want to trivialize the details – so let’s try and break it out for you:

Rule #1 – Scholarships aren’t a sure thing.
Yes, you can apply until your fingers are numb. But you can’t rely on this type of cash to sustain you, or fulfill your “life-long college dream” choice. I’m not saying don’t apply, I’m saying don’t listen to all the hub-bub about Loans are the devil, you’ll be in debt forever, etc…

Rule #2 – Loans are an excellent tool.
People will moan about paying off their student loans (even more so when they drop out without finishing). Education that is worth money, will cost money. But my question to you is – do you need to take your first two years of classes at the expensive place? My suggestion to you is to research community colleges – some offer “transfer” degrees to institutions – you take the general education classes at community college, save yourself a few grand, and then go drop the big bucks on your Bachelor’s Degree. You’ll save money in more than one way.

Rule #3 – Diversify your food.
Ramen seems to be called the staple of the college diet. Yes, it’s cheap. Yes, it’s not necessarily the healthiest option. My suggestion to any kid in college that lives in or around the campus – find out where the deals are. Dollar tacos? Half-off specials? These places are prime for cheap, good eats (often rivaling the price of making it yourself) – plus they come with the added bonus that you get to hang around your class-folk. People under estimate the value of networking at any stage of college.

It’s equally important to recognize that while you are in college, brand name foods may not be worth their price tag. Generic vegetables all taste the same. Some things you may not want to skimp on – peanut butter, perhaps. Maybe you like a specific kind fo salad-dressing. The point is – don’t splurge on everything except the few items you’ve grown to love (or no generic has been able to match – yet).

Rule #4 – Drink – in moderation.
This is another key networking tool – when used wisely. Boys and girls, know your limits. No one likes the excessively drunk kid. No one likes taking care of the drunk. If you choose to drink in college – pace yourself, don’t give in to peer pressure, and when you call it quits – mean it. I’ve had to help too many people out when they “couldn’t say no” to one more drink. Leaving the party “too sober” is never followed by a story involving drunken accidents, bad one-nighters, or illness.

Rule #5 – Put off new purchases.
I love following this one after the drinking issue. I’ve met a few guys who would buy a brand new outfit (occasionally on credit, occasionally on the allowance their parents give them) and then go out drinking, get too drunk, or are too uptight about “getting dirty” that they come off very stand-offish to everyone. You can get good clothes on sale (or at Good Will, or thrift stores). You really do not need the hottest fashions unless that’s your major (but if you’re a fashion designer, you should be MAKING the hot new things, not buying someone else’s). Guys – seriously, do you need designer jeans? That impresses only people who are concerned if you can buy them expensive things.

You won’t always win.
Just as a quick wrap-up, sometimes, you’re going to lose. You may get an F for the first time ever. You may have a teacher or a class that you just can’t conquer – but that’s reason to talk out, to discuss, to speak up. Break old bad habits – being shy never helps, and in a room full of people that aren’t talking, chances are they’re as shy as you. I’m still trying to crack this shell in myself.

The point is – you can spend cash. you can work part-time. You can work full-time and go to school full-time – I’m doing it for almost a year straight. I’m on the Dean’s list. think about the short-term (community college) along with the long-term (where you’re going afterwards).

Actually, perhaps that’s a better point. Just think. Think about yourself, your education, your money, your future. Think about how you’d want to tell your kids about the kind of life you *really* lead in college – the person that had a few beers, was a regular on $1 taco night, and still pulled a B average, or the locked in the dorm room, stressed straight-A student? When you graduate, it could be the people you made friends with that land you your job (or a future one). They’re not going to care tha tyou didn’t carry a 4.0. They’re going to care you took the time to get to know them.

Good luck, college kiddos, I’m in the grind with you and I know it’s not getting easier – but I know it’s definitely worth it.

So SmartMoney is running an article – Private Colleges Can Be Just as Affordable as Public Ones – showing that Private Schools can be as affordable as public ones. How can that be so?

Private Universities tend to be a bit more open with their pocket books, so to speak.
Why a pricey private school could be cheaper
1. Privates have more money to give
I’ve seen this time and time again, with a few friends and relatives going to a private university – and having bills substantially lower than their in-state public college.

2. They meet a bigger percentage of need

3. They’re more willing to consider special circumstances
Private colleges basically are more friendly and understanding – and I’ve definitely witnessed this with my sister’s dealing with the financial aid office, and my repeated problems dealing with public universities.

4. Your child may graduate sooner
As a fact – my sister did. The relatives in public schools? We’re still trucking towards the five-year (or longer) route.

The point is – never rule anything out. You have to try before you can fail, and be told “NO” in writing before it isn’t an option. If you don’t try, you’ll always fail!

I’ve spent the past two weeks moving, studying, and moving. And then moving some more. I’ve been quite exhausted physically and mentally, but with an upcoming break in another week hopefully I can get into the swing of things…

Dong points out that a private college charges 30k while public charges 12k (on average). It’s a huge gap that needs some explanation – Dong helps point out:

They end up succeeding not because they have received a better education but because they are by nature already ready to succeed. The degree is merely a reflection of success rather than the root of success.

The students make the school more often, not the other way around. So why pay a premium when so many dropouts are doing great? Of course, it’s more of a “luck of the draw” when others lie and land their job. It makes it hard to choose “prestigious” when it seems “luck” and “determination” play larger roles in the fates of careers.

Of course, what many people don’t realize is scholarships play a huge role – I know people who attended the private schools, and did so not because of big bucks in the bank, but because of big bucks in scholarships they applied for (and won, and most importantly, earned). The huge price tag drops dramatically, or disappears entirely.

Now, I’ve heard of people’s affiliations applying to their employment – old frat boys meeting up, people knowing someone from that school of… art, business, what have you. That will take you so far and make things easier for you. For example, I could go to a technical school for design – it ranks less than Pratt Institute of New York, but attaching the name may raise heads until they compare portfolios (let me point out – I like that portfolio, and I don’t have one online to show). At the same time, listening to a world-class violinist is all in the ear of the listener. It’s up the the listener/viewer to determine the value.

I’m looking at a “higher ranked” school down the road. Community college now, top ten school for finance. Will it determine how good I am? No – I determine that, but it may open a few doors, or wedge open the flood gates – which in any job can be the determining factor between success and failure.