'Adulting': How not to break the bank at college

Shawn Sullivan is taking it relatively easy this summer. The fourth-year architecture student is only working three jobs, unlike last year when he juggled five part-time gigs.

He worked 60-80 hours per week to help cover the costs of attending Northeastern University.

“Five jobs was too many," he said, laughing. "Sometimes I’d come home from one job, have a couple of hours to work on material my professor had given me before I’d go onto my proctor position, and then continue being on duty as an RA (resident assistant)."

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His parents help cover tuition, but books, architecture supplies and the cost of living in Boston fall entirely on him.

“It’s definitely a source of stress to make sure I’m monetarily afloat, especially because
I do have to go to grad school to be a licensed architect,” he said.

Sullivan makes it work, but many students simply don’t have the information they need to avoid the financial pitfalls of young adulthood.

About 1 in 5 American students failed to meet the baseline level of proficiency in financial literacy, according to a 2015 study from the Programme for International Student Assessment.

“In terms of budgeting, I think a lot of students just aren’t prepared and haven’t had to deal with it,” said Lynnette Khalfani-Cox, personal finance expert and CEO of AskTheMoneyCoach.com.

“There are a whole host of college costs that frankly most colleges simply do not talk about,” she said.

While there's no one-size-fits-all answer, Khalfani-Cox promised “there’s always a solution."

Housing

Khalfani-Cox urged freshmen to live on campus for their first year to help them get acclimated. After that, they can look for cheaper options off-campus.

“Colleges are charging you a premium for that access to everything that’s right there on campus,” she said.

Like Sullivan, students can typically get free room and board by working as a resident assistant. 

Students moving off-campus, however, must factor in additional costs, like transportation.

This was an unexpected challenge for Mary Dell Harrington, co-founder of Grown and Flown, a parenting website for families with children ages 15-25.

While her son was able to live on campus for all four years, her daughter — now a senior at the University of Virginia — had to start looking for an off-campus apartment in October of her freshman year.

She had to buy furniture or bring it from home, and once the semester ended she had to purchase a storage unit for anything they couldn’t take home to New York.

“That requires a whole other level of financial expenditure,” Harrington said.

Transportation

For students traveling out of state and living off-campus, transportation is yet another "hidden cost." 

Harrington said some travel companies have student discounts, but the best thing to do is not wait until the last minute to book plane or train tickets home.

On campus, it can be tempting to call an Uber every time you need a ride. Splitting a ride with your friends is an easy, cheap option, but there are plenty of other ways to get around.

Coming from a fairly small city in Minnesota, Sullivan didn't anticipate how much public transportation in Boston would cost.

“That adds up when you’re taking it a couple of times per week, week after week,” he said.

Some schools offer free passes for mass transit, according to Khalfani-Cox. She strongly recommended students use public transportation or get a bike, rather than driving.

Parking fees alone are $635 per year on average, she said, not to mention the cost of gas.

Bottom line: “It’s a horrible idea to have a car on campus," she said.

Meal plans

Millennials have long been ridiculed for their love of Starbucks and avocado toast. A recent study found that they are eating up their savings by dining out five times per week.

Meal plans can range from $3,500-$7,000, and if you live on campus you might be required to have one, according to Khalfani-Cox. She said while they can be worth it, students should stay away from the 'all you can eat' options.

“That’s just overkill for the average student, not to mention one of the reasons for the dreaded freshman 15,” Khalfani-Cox said.

It’s important to bear in mind your personal eating habits when choosing a plan, Harrington said. Her son was an athlete who went through cases of Gatorade and often needed to eat when the dining hall wasn’t open.

“He played football, so his food consumption needs were much greater than he could have accommodated at the dining hall,” she said.

Khalfani-Cox added that if you have apartment-style housing with a kitchen, making your own meals is better for both you and your wallet.

No matter what, she said the easiest way to save money is to limit dining out. But when you inevitably go out to eat, she recommended checking websites like Chegg for student discounts.

Budgeting the 'extras'

Whether you're funding a ramen noodle habit or buying new clothes for an internship, students spend thousands on extras in college. 

Khalfani-Cox pointed out that extracurricular activities aren't always free.

"The average fraternity or sorority will cost today’s college student anywhere from $1,000 to as much as $4,000 per year in fees," she said.

Sullivan recommended taking advantage of student discounts as well as free food and activities on campus and in your city. He often volunteers at concerts or events to get in for free.

Budgeting "entertainment costs" can be one of the biggest challenges for students, but it's an important skill, according to Khalfani-Cox.

"If you get into the habit of being financially responsible right now that’s such a great trait to have," she said. "It's a positive habit that can follow you and aid you economically for the rest of your life.

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