College education should not be a problem for most people. However, thanks to the high college expenses, a lot of kids are doubting if they can really afford a higher education. An article published on NPR.org mentioned how President Obama believes that young people want to go to college but the costs are holding them back. The President made this statement during his speech at the Coral Reef Senior High School.
The truth is, some student get really supportive parents who took the initiative to save early for their child’s education. These are the lucky kids who do not have to worry too much about the cost of college. But not all students are lucky. Some parents just do not have the financial resources to save for college. It was not like they do not want to help. It is just that their income is not enough to accommodate extra savings for their children’s savings.
So what can both student and parents do to help their kids go afford the high college expenses even without savings?
What to discuss to your child about college costs
Well first things first, parents should sit down and discuss financial matters with their kids. But what exactly should you be discussing with your kid?
Where to go to school.
Begin by discussing where the student wants to go to. This can be your starting point. What do they want to take up and what school is the best for them to get the education they need. You can get information on that school so you will know the college expenses that you need to prepare for. If the school is expensive, you need to talk to your child about other options. You have Ivy League schools that are the top priority but a lot of state colleges give great education too. Even community colleges can be an option for students who do not have much money to pay for higher education. You need to discuss these options with your child. You can even get your education online if you want to.
What can you afford to pay.
You need to be realistic about where they can get their education. While student loans may be an option for them to afford any educational institution, it is just not practical. If you have another option, then that is what you should teach your child to pursue. According to an article published on NYTimes.com, the average tuition fee of private colleges is at $12,460 for 2013. For in state students in a public colleges, the rate is at $3,120. Going to Ivy League schools can be a dream but it is not always the best option. Besides, not everyone who graduated from these schools got a great life ahead. If you cannot help your child to pay for college, be honest about it. Some parents sacrifice their retirement just so their kids can go to school. While that is admirable, it is not the only way you can help your child get an education. You can both find a way to get your kid through college without compromising both of your futures.
What the kid should shoulder in terms of costs.
Lastly, you may want to discuss how your child can help pay for their own education. Even if you can share in paying for the college expenses of your child, you still have to discuss how they can help boost their finances. Check the options that they have in terms of jobs. They can get a part time job in retail or in restaurants. Some students get jobs in the universities and colleges that they go to. It helps lower their tuition fees. Discuss how much money they should target to earn.
Once you have discussed all three of these, that is the only time that you can determine if there is a need for your child to borrow student loans. Some people feel that it makes college education worthless but that really depends on the borrower. You can have your child borrow money – as long as they know how to manage it well. It is your responsibility to instill in them the right habits and behaviors that will get them through college without compromising their future.
Important habits to help your child manage college finances
The habits that you will be teaching your child for their college expenses is something that they will carry with them until they get older. So it is a great idea to help them become better financial managers at an early age. You need to encourage them to handle their money wisely regardless if you are supporting them financially or not. That way, they will feel responsible about every expense that they will make.
Here are a couple of habits that you should encourage your child to have.
- Budgeting. First of all, you need to teach them how to budget. They should learn how to create a budget plan and how to revise that as their college expenses change every now and then. If they suddenly have bigger expenses for the coming month because of school expenses, then they should learn how to adjust their budget plan to ensure that their money can cover all the important expenses.
- Smart Spending. Another habit that you should teach them is about smart spending. Even if they suddenly get a bigger pay in their part time job, they should not be too quick to increase their expenses. Instead, they should try to allocate that towards any student loans that they have taken. Or it can go to their savings.
- Savings. Speaking of savings, you should teach your child how to save up for an emergency. Although you can send them money, there may come a time when that money will not reach them in time. They should have their own stack of funds that they can immediately access when they need to. That should help tide them over until your financial support can reach them. Make sure you teach them how to save up for the expenses for the next term. Anything can happen so they should learn how to prepare for any event that can face.
- Earning Money. Lastly, you need to discuss with them how to earn money while in school. According to an article on TulsaCC.edu about the Federal Work Study, it is revealed that students usually only need 20 hours per week to be academically successful in school. We have 168 hours a week. That gives them 148 hours for other activities. Assuming that the student needs to sleep at least 9 hours a day, that is 63 hours less to 85 hours. For eating, chores, and other activities for their well being let us give 6 hours a day for that – which leaves a free time of 43 hours. Even if the student allots 20 hours for entertainment and relaxation, there is still 23 hours left. What better way to use that than to work. There is an option for Federal Work Study that can help students earn extra money to help get themselves through college.
Regardless if you can support your child’s college expenses or not, you may want to discuss all these options to them. At the very least, you can offer them your guidance. In the end, that may even be more valuable than any financial support that you can send them.