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Two Steps To Save An Additional $55,012 On College Costs

By admin on Jul 20, 2009 in Funding Education

You can build your own ivory tower with the cash you’ll save by taking a few unconventional steps.

If you are a regular reader, you already know that I am not a big fan of sending kids to expensive colleges.  Studies prove that our success in life is not a function of where we went to college. In fact, my experience tells me that we don’t spend the big money  on college for Junior’s sake. I think it has much more to do with our own ego thirst.

But regardless of where your children go to college, there are a few things you can do to save a bundle:

1. No summer job.

Yes….you read that right….and no…..I haven’t lost my mind.

Your student already has a job – it’s called college and the mission is to get that degree ASAP.

The longer your child stays in college the more it will cost you.  Most college costs are fixed – like tuition and room and board so the goal is to get Junior through school and working at the earliest possible time.

You don’t take a 3-month summer vacation do you? At some point, that was over.  Why should your college kid kick back for 3 months?

Explain that her job is to get through school pronto.  No messing around.  Register for summer classes.

Think about it.

Let’s say it costs you $25,000 to send your daughter to college.  If it takes her 4 years, that’s a total of $100,000.  If you can push her through in 3 or 3 1/3 years, you’ll save up to $25,000.  And that’s not all.

Assume your daughter graduates early and finds a job earning $30,000 (gently remind your student that finding employment is, after all, the reason we go to college). In this case, you save the fixed cost ($12,500 – $25,000) plus she earns $30,000.  A nice boost…right?

2. Take lower division classes at community colleges.

I’m in California and we have a huge number of fantastic community colleges. When your son or daughter comes home for summer vacation, show them the benefits of taking lower division classes during the summer at community college.

a. It will be easier for them to get classes when they go back to school in fall because they won’t be competing for the general education classes that everyone else wants.

b. It will reduce the debt they are accumulating.

c. It could  mean money will be left over once they graduate.  That means there could be some money to help them in grad school.

In most cases, a summer job is only going to pay $10 per hour.  If your kid works, he’ll just use the money for beer and movies anyway.  If your child can go to summer school instead and as a result, graduate 1 or 2 semesters early, it’s a far better proposition. Plus, added bonus….he’ll be so busy with homework that he won’t have time to spend money.

How long did it take you to graduate college?  Did you go to summer school?  Is it fair to ask your child to do this?

Like this article? You will love getting my free brilliant financial updates! No spam, and I won't give your email address to any other person or company. That's a personal promise. Neal Frankle, Certified Financial Planner, Los Angeles, California.

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  1. 7 Comment(s)

  2. By My Journey on Jul 20, 2009 | Reply

    I would add taking college courses in HS. My HS offered College Account 1 and 2, College Business Law 1 and 2, and College Marketing 1 and 2. I started school with 18 credits for a couple hundred bucks a years. Well worth it if your child can handle it. (This doesn’t count AP courses – but I am not sure that is a national thing vs NY only).

    [Reply]

  3. By Neal on Jul 20, 2009 | Reply

    An excellent point. Thanks.

    My daughter took a few courses in HS that will in fact help but we weren’t intentional about it. I will for my 10 year old!

    [Reply]

  4. By ObliviousInvestor on Jul 21, 2009 | Reply

    Many schools give out full-tuition scholarships for National Merit finalists.

    My advice: Nail the PSAT. Study like crazy. It’s very likely the single most important test a student will take in his/her entire life, and yet most students don’t study for it at all.

    National Merit scholarships are based first upon the PSAT, then the SAT. (You only get to take the PSAT once. If your score on that was high enough, you can take the SAT several times and simply use your highest score for trying to qualify for National Merit.)

    [Reply]

  5. By Neal on Jul 22, 2009 | Reply

    Great advice. Wondering why nobody talks about that to students….I will have to ask my daughter about this one.

    [Reply]

  6. By spaces on Aug 8, 2009 | Reply

    Some JCs offer short, intense courses during local unis winter or summer break times, where the class typically meets 4 hours a day, 4 to 5 days a week for 3 weeks. It’s only practical to take one class at a time, but if you can knock out a required class by taking it over your winter break, you just saved yourself some $.

    [Reply]

  7. By Revanche on Aug 9, 2009 | Reply

    Definitely encourage them to take AP courses and PASS the tests. A passing score is 3 (of 5), but the higher the score, the more likely the higher-rated colleges will accept them as college credit. You can knock off a good number of electives that way, saving time, and a LOT of money. I was spared about 3-5 classes at a Cal State, and had the added benefit of allowing me to graduate in four years at a school known for 5 year grads. [The 5 year average has to do with the competitive engineering/aerospace departments skewing the numbers. Classes are small throughout the university, so it's tough to get everything you need within the 4 years. And I think many students skip summer school.]

    Summer school is also a great option. Not only were the classes concentrated to 2-4 hour sessions twice a week, you could complete a quarter in 6 weeks instead of 11. That left me a half a summer to work full time to pay for my next quarter of school!

    I’m not sure that fairness comes into play here. Being fiscally responsible is your child’s responsibility – they are usually 18 and considered adults in the eyes of the law by the time they’re attending college and they’re responsible for not squandering the opportunity that college offers, and not squandering limited financial resources.

    If they have the ability to do that by accelerating or more efficiently scheduling their courses, they have the responsibility to do so.

    [Reply]

  8. By Neal Frankle on Aug 10, 2009 | Reply

    Revanche,

    I love your comments. I completely agree. Great attitude!

    [Reply]

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