4 answers
jacob
Student
Fall Creek, Wisconsin
1
Question
Updated
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What is the most efficient way to manage money as a college student to avoid debt after graduation?
I want to be able to leave college with minimal debt, and would greatly appreciate advice on how to save now for the future. #kinesiology #music #passion #college #financial-planning
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4 answers
Alex F
A&P Mechanic and Self-Employed Musician
16
Answers
Fort Mill, South Carolina
Updated
Alex’s Answer
More information is needed to answer this accurately. What grade are you in now? How much do you have saved? These answer would affect what one can recommend to you.
Money doesn't build quickly. If you're young enough, you should create a college savings account at a bank. They can be accounts similar to CDs, Savings, IRAs, etc. Lots of variety. If you're older and heading to school now, then you should have roommates, work hard to pay for living expenses from your job, go to the school that provides you with the most scholarship, and get a degree that can provide you with a job after graduation. All degrees are not created equal and if you're unemployed, $20k of debt will be extremely difficult to pay off. If you make $100k, then a $50k debt would still be manageable.
Passion is great to have for a job, but passion does not pay the bills if there are no jobs to be had with your passion. In the end, make a budget in Excel. That will show you what you will need to live, and what you have to pay for school. Be realistic in your estimations. Excel can help you see what you have to make to pay as you go, or what your monthly payments would be if everything was in loans (don't forget interest). Go in-state. You may or may not have a big name school on your resume, but you have to prioritize if get your dream school is worth the extra time in loan repayment.
Money doesn't build quickly. If you're young enough, you should create a college savings account at a bank. They can be accounts similar to CDs, Savings, IRAs, etc. Lots of variety. If you're older and heading to school now, then you should have roommates, work hard to pay for living expenses from your job, go to the school that provides you with the most scholarship, and get a degree that can provide you with a job after graduation. All degrees are not created equal and if you're unemployed, $20k of debt will be extremely difficult to pay off. If you make $100k, then a $50k debt would still be manageable.
Passion is great to have for a job, but passion does not pay the bills if there are no jobs to be had with your passion. In the end, make a budget in Excel. That will show you what you will need to live, and what you have to pay for school. Be realistic in your estimations. Excel can help you see what you have to make to pay as you go, or what your monthly payments would be if everything was in loans (don't forget interest). Go in-state. You may or may not have a big name school on your resume, but you have to prioritize if get your dream school is worth the extra time in loan repayment.
Nir Krawczyk
Software Engineer
124
Answers
Yonkers, New York
Updated
Nir’s Answer
The best way to avoid debt is to not go to a school you can't afford. There are a few fields like the top finance and law firms that essentially only take kids from the top institutions. But outside of that you will find that coming from a great institution is important, but it's not critical. I personally went to an great honors program in a public school and most of my colleagues who worked hard went on to get the best internships and the best grad schools. 10 years down the line their life might look exactly the same if they had gone to a top private school, only their debt would be infinitely higher. If you want to study music and you don't have the money, don't go to Berkley because you can get just as good without them.
We are often taught to believe that going to the best schools is an opportunity you simply cannot refuse and it's not true. I know hundreds of musicians who did not go to private music schools and are absolutely phenomenal. Especially with music where practice and playing with others is free and totally attainable, and those are the two biggest predictor of skill. Yes the connections are great at a music school but they're not worth being in debt for the rest of your life or even for the next few years of your life because it can be truly crushing.
We are often taught to believe that going to the best schools is an opportunity you simply cannot refuse and it's not true. I know hundreds of musicians who did not go to private music schools and are absolutely phenomenal. Especially with music where practice and playing with others is free and totally attainable, and those are the two biggest predictor of skill. Yes the connections are great at a music school but they're not worth being in debt for the rest of your life or even for the next few years of your life because it can be truly crushing.
Brittany O'Loughlin
Manager
2
Answers
Somerville, Massachusetts
Updated
Brittany’s Answer
Hi Jacob,
You should pursue any scholarship or grant opportunities you come by. If possible, getting a work study job or becoming an RA can help you reduce the cost of school as well. Be sure to set a budget for yourself each month - you should enjoy college and let yourself have fun but spend less than you're earning to help you build up savings.
Best,
Brittany
You should pursue any scholarship or grant opportunities you come by. If possible, getting a work study job or becoming an RA can help you reduce the cost of school as well. Be sure to set a budget for yourself each month - you should enjoy college and let yourself have fun but spend less than you're earning to help you build up savings.
Best,
Brittany
Karl Watkins
Sales
4
Answers
Farmington Hills, Michigan
Updated
Karl’s Answer
Stay away from the all the credit card offers, do you homework on what it take to establish good credit. Choose one card with reasonable interest rate and keep a low balance. Avoid overspending on the card as much as possible and make sure you can pay off the balance at the end of the month. That does mean you have to however it a good way the set a spending limit each month.