The cost of college should never discourage anyone from going after a valuable d
The cost of college should never discourage anyone from going after a valuable degree. –Arne Duncan, former United States Secretary of Education
LEARNING OBJECTIVES
By the end of this section, you will be able to:
- Identify sources of major and minor expenses in your life
- Identify sources of income in your life
- Set financial goals and priorities for yourself
College students often have money concerns, such as affording college while still paying other bills. These concerns can affect their academic success. For instance, money problems are stressful and can prevent students from concentrating on their studies. Or, if students have a lot of personal expenses, they may try to work more hours to cover costs of living, leaving them with less time to study. Worse yet, some money problems, such as extreme debt, may cause students to drop out of college entirely.
Analyzing one’s financial responsibilities and planning ways to pay for expenses can help reduce stress. In this section, we identify common personal expenses, sources of income, and explore steps for creating financial goals.
Expenses
College students are diverse and may be in different stages of their lives. For example, some students may have just graduated from high school, while other may be older and have families. While these differences will have an impact on financial responsibilities, there are certain financial obligations most college students have to pay for. Some are more expensive, like tuition, while others are less pricey but still important, like books and food. The following list describes basic expenses associated with college:
- Tuition: This includes the price for attending an institution. Students pay relatively more or less for this based on where they’re going to school and how many credits they’re taking.
- Room and board: These are essentially “food and shelter” costs. Many college students live in a dorm and eat their meals on campus. Students who live off campus will have to pay for comparable things, like renting an apartment and buying their own groceries.
- Books and supplies: These include books for classes and supplies like notebooks, writing utensils, and calculators. Textbooks are often very expensive, so many students try to find used textbooks for sale.
- Personal needs: Regardless of where students live, they typically need money for things like laundry, cell phones, computers, and going out with friends. This expense can vary a lot depending on personal preferences. For instance, some students may prefer to make their own meals while others may prioritize eating out.
- Transportation: Students who commute by car or need to drive to off-campus activities will need to consider the price of car insurance, maintenance, and gas. Students who attend college in more urban areas may also have public-transportation expenses.
What types of expenses do you think you might face as a college student? The following video will help you review the types of college e