Freshman College Student Money Management

Going off to college marks the first time that many students will be living on their own, without Mom or Dad to help them manage their finances. It’s not surprising that a number of college Freshmen have difficulty managing a cash flow for needs and wants, or that some make poor financial decisions that can carry far past college. If you’re off to school this Fall, here are some tips to keep you in the black:

Know Your Cash Flow

While you may have totaled up the yearly expenses and income for college, do you know WHEN you’re going to have money (and when you have to scrimp and save)? Get a calendar and circle the payment dates for incoming funds like grants, bursaries, and part-time work income, as well as the payment dates for expenditures for tuition, accommodations, and books. Pay attention to where the gaps occur – that’s when you may need to borrow from family or other sources to make ends meet in the short term. Don’t forget, if family or friends have promised you monetary gifts towards your college education; ask for a specific payment date so that you can plan appropriately.

Set a Budget

“Budget” might sounds like a dirty word when you’re looking forward to the “freedom” of living away from home, but it’s a necessity. Because a student’s cash flow is often sporadic, it’s important to know what your monthly or even weekly limits are on spending, to avoid having to eat nothing but ramen noodles come December! Set a reasonable budget not only for your necessary items (i.e. bus passes, laundry soap, clothes, and basic food items) but also for your entertainment (i.e. restaurant trips, events, and late night pizza runs).  Don’t forget to budget for seasonal items too, such as train tickets to go home at Thanksgiving or Christmas gifts in December.

Be Smart With Your Credit

Once a student is legally an adult, they become fair game for credit card companies, and many students make the mistake of taking on non-academic debt (i.e. consumer debt) simply because it’s so easy to get a credit card. Don’t be fooled by free t-shirts or “student special” credit card offers, or by banks that say “Well, you don’t have to USE it….” If you don’t need to borrow money to get through college, DON’T. And if you do need to borrow, consider friends, family and structured student loans with lower interest rates before you consider credit cards.

A Parent’s Guide to “The Last Summer At Home”

The summer between a student’s Senior high school year and his or her Freshman college year is a bittersweet one for parents. On one hand, they can take a great deal of pride in the fact that their child is approaching adulthood and has been accepted into a great college. On the other hand, they’re faced (usually for the first time) with the idea that their child may be moving away from home for the first time!

Parents often struggle with this “last summer at home”. Here are some tips to make it more enjoyable and less stressful for both parents and kids.

Ready, Set….?

The last summer at home is a great time to be sure that your child has all the skills he or she needs to function as an independent adult. If you’ve always handled your child’s finances or you’ve never allowed him or her to do housework, they’re likely in for a surprise (and not a pleasant one) when they’re out on their own.

View summer as the opportunity to teach your child skills that he/she will need, whether it’s how to do laundry properly, how to budget, or how to maintain the car (if it’s going with them to college).

Create Family Memories

Particularly if you’re sending your oldest child off to college, you may feel as though your family is breaking apart and will never been the same. In some sense, it’s true; even if children return home the following summer or after college, they’ll never been the same age again.

Make time in the summer to enjoy quality family time, either planned trips with the whole family or even just Sunday afternoon lunches around the home when the whole family can be together. By scheduling time, you’re less likely to be anxious about missing your child’s last summer at home or to be resentful of your child’s time spent with friends outside the home.

Develop Your Own Interests

If the phrase “empty nest syndrome” strikes fear into your heart, summer is the time to begin developing your own interests to stave off parental loneliness. While you may have devoted the last several years to your child’s high school life, the coming college separation can leave you with more free time on your hands than you expected.

Take up old hobbies or interests that you may have neglected since having a child. Consider joining new groups and clubs which will let you meet more friends in your area. If you still miss the frenzy and fun of a living around a teenager, consider volunteering at your child’s old high school.

Summer Programs for College-Bound Students

While summer is a great time to rest, relax and unwind, it can also be a great opportunity to further your college dream. Here are some tips on making the most of the summer months with an eye towards getting into your ideal college.

Test Out Your Interests

One of the toughest choices that high school students have to make is settling on a course of study in college. After all, you will be spending 3 or 4 years in your program, and likely looking at a career related to it for years afterwards; better be sure that you like it!

If you’re trying to choose between two or three different college programs, a summer job or summer program that lets you immerse yourself in that field for a couple of months is a good way to make an informed decision, either for or against, a particular program.  Considering a career in business or finance? Consider asking if you can intern (or better yet, get a paid summer position!) with a small local business for the summer. Want to work in the entertainment industry? Volunteer at a local community theatre.

Advance Your Education

If you’re already sure what subject in which you want to major in college, consider getting a head start by taking summer courses or programs. Interested in engineering? Consider taking an engineering summer program at NC State University. Pursuing biotechnology? NC State also offers a college-level course designed for advanced students. Looking at English as a major? Local libraries and colleges offer writing workshops and book clubs that can help.

Not only will summer courses and programs relevant to your future college studies help you be sure that you’re going into the right program in college, they can also giving you a deciding edge in your college application. Demonstrating that you’ve already pursued interests relevant to the college program to which you’re applying can show you’re a committed student.

Work On Your Weaknesses

Not all high school students should play to their strengths when looking at summer activities, however. If you feel you have one or two critical weaknesses that might affect your eligibility to top colleges, consider devoting your summer to working on them.

If your high school record is strong on academics, but light on “character” components, consider working on leadership or community involvement by volunteer coaching a children’s sports league. If you received one or more marginal grades in one of your high school courses, consider asking your teacher or guidance counselor for advice on remedial summer courses or tutors to help you brush up on weaker subjects.

Great Graduate Gifts for College-Bound Students

Of all the events that people celebrate in their lives, high school graduation is one of the best! Graduation often marks the passage from childhood to adulthood, and is frequently a chance for friends and family to say “Bon Voyage!” as students head off into life.

If you’re looking for a meaningful or helpful gift for a graduating high school Senior who is headed into college, here are some suggestions:

Prepaid Phone Card/Phone

If the student is going out of town or away from family for the first time, a pre-paid calling card or pre-paid phone is a great gift. Whether it’s simply to keep in touch with family back home or emergency calls to a parent (“Do I wash black socks and white t-shirts together, Mom?”) the gift of communication is meaningful and helpful.

Bookstore Gift Certificates

College books are expensive, and students often don’t realistically account in their budget for how much they might cost. A gift certificate to a college bookstore or a reputable online source is a great gift for students. Want a more meaningful gift? Consider asking the student for his/her complete book list and spend the summer tracking down book bargains to help offset the cost of college, and sign each one with an encouraging message to the new college student.

Household Items

For students moving away to college, the cost of simple household items can quickly add up. Things as simple as a coffee maker, ironing board, or a microwave are taken for granted when you’re living at home with your parents, but can be sorely missed when you’re suddenly on your own.

A Cleaning Kit

Alright, it’s not necessarily the most meaningful gift, but it certainly is helpful! Collect a wide array of cleaning products (mop, bucket, tea towels, laundry detergent, bathroom scrubber, etc) and package it all up for the new college student. They might think it’s funny but they’ll certainly appreciate it by the beginning of October when they realize that their parents are no longer around to keep their house clean!

Grocery Store Gift Cards

We’ve all heard stories of students who run through their term funds too quickly and are reduced to eating ketchup soup in December. A gift card to a national grocery store chain can help ensure that the student in your life is well-fed, or give them a little boost for something fancier than cafeteria fare.

Cash

If the high school Senior in your life is facing a financial shortfall for college, cash to be applied towards tuition and fees can be the most meaningful gift of all. Every dollar you give might be one less dollar the student has to take on in student-debt. Giving the gift of a debt-free future after college is truly meaningful and helpful; even if the student doesn’t realize it for years to come.

How to Avoid Senior Year Burnout

With your senior year winding down, or being faced with starting your senior year this fall, it’s important to keep your grades up, but also to have a healthy perspective.  Here are a few things to take into consideration to avoid unnecessary stress and burnout in your senior year.

Get Plenty of Sleep This may be the hardest step to follow-- your mind is racing with information on future college living, senior prom, graduation and, most importantly, how to spend your last remaining moments with high school friends and family.  Remember that your body and mind both need plenty of rest to function properly. Not only will lack of sleep add to your stress levels, it can contribute to other health issues, too. Try to get at least six to eight hours of good sleep every night.

Stay on Top of Your Classes You may think that once you are accepted to a college, the school work is over. Wrong! Most colleges will expect to see your final grades and may even rescind their offers of admission if your grades drop dramatically at the end of your senior year. Now is definitely not the time to become a slacker. Be sure you have recorded all important testing dates and have scheduled time to complete all papers and projects due prior to graduation. Attend all classes and maintain your grade point average. You’re almost there, so don’t drop the ball now.

Challenge Yourself Students often feel like the final weeks of school are dragging along. Take this time to challenge yourself. Start volunteering somewhere to stay motivated and engaged. Are you still undecided about your college major? Take this time to find internships or job shadowing opportunities at various companies or organizations to see if something clicks. You may just find your calling!

“Me” Time If you find you are having problems concentrating, sleeping, or are feeling depressed, be sure to take a break. Take a run or go for a walk or try some deep breathing exercises. Just a few moments away from your everyday grind can give you a renewed energy and alleviate some of the stress you are feeling.

Before you know it, graduation will be here and the summer will be flying by. But before you can start the next chapter of your life, you need to make sure you finish high school on a high note. Keep focused on your homework and be sure to prepare for your AP, IB or AICE exams. And one last thing: celebrate your high school successes…you’ve earned it!

The Value of a College Education

Going to college is one of the biggest decisions in a person's life. The high cost of getting a college education can make it a daunting prospect, but with lots of financial aid available in the form of loans or grants it is often not impossible and is very valuable. Here are some reasons that the decision to go to college is a good one.

·         It is the best investment anyone can make. Most graduates get a huge return on the cost of college during their life. Also, the value of a college degree never decreases so you will always have it to fall back onto when looking for a job.

·         College graduates are generally more well-rounded people because of the experience that they gain. Nothing beats the college experience for developing social skills that will be useful wherever you go and whoever you meet.

·         The chance to meet and network with people who share the same interests. This should not be underestimated--building contacts can help greatly in the future when you're looking to get a job, as well as providing a stepping stone into different industries.

·         College helps a student to become an expert in their field. This allows them to contribute to their subject's future in a meaningful way, while learning about the subject they love and enjoy.

·         The social skills picked up at college are used throughout the student's life. Being able to meet new people is one skill that will be useful no matter which field of work you go into.

·         College helps to make students more aware of the country they live in and gives them a sense of what is right and wrong. College graduates tend to be a lot more willing to stand up for what they believe in because of this.

·         The chance to meet and make friends for life. To be happy, we all need good friends around us and college is a great place to find some. This is because lots of the people you meet will be motivated and share the same interests as yourself.

·         A college education is one commodity that will only ever increase in value. No matter how many years go by, your college education will always be of value wherever you go.

·         A college education opens up many doors in the workplace that otherwise would have been unavailable. This is especially true today when more and more people are going on to higher education.

·         Going to college is investing in a student's own future. When you go to college you are giving yourself the best possible chance to succeed.

There are plenty more reasons for going to college, some are financial, some social and some personal. Going to college is, for many people, the best decision that they will ever make!

Tax Credits 101

In 2010, the American Opportunity tax credit expanded and changed the older Hope credit along with a few other aspects of other tax breaks for college families. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extend the amended college expenses tax credit through 2012. This law allows parents and independent college students to obtain deductions or credits from taxes owed based on certain expenditures on higher education. There are several opportunities to save on your annual tax payment.

Above-the-line Deduction

This tax break is allowed for fees and tuition paid for higher education by the tax filer for them or a dependent child. Up to $4,000 can be deducted above-and-beyond the standard deduction, even without itemizing. A smaller $2,000 deduction is also possible for some taxpayers depending on adjusted gross income.

Student Loan Interest Deduction

Changes were also made in the rules regarding the deduction possibilities for interest paid on student loans. This is not only important to college graduates but for those with current expenses. Because the Parent Loan for Undergraduate Students (PLUS) allows for immediate repayment any family choosing that option over deferring until after the student's graduation could potentially utilize this tax break. 

American Opportunity Tax Credit

The American Opportunity credit allows families or independent students to claim up to 100% of the first $2,000 paid in tuition and fees plus 25% of the next $2,000. Therefore, the maximum tax break from this program is $2,500 and is only available during the first four years of a student's academic career.

Lifetime Learning Tax Credit

Still around from the past is the Lifetime Learning credit, which is less restrictive than the American Opportunity Tax Credit and is mainly intended to help defray college costs after the first four years, when AOTC eligibility expires. It is available for an unlimited number of years and does not have any minimum enrollment requirements. Continuing education and graduate courses are included as applicable expenses.