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When you've considered making a substantial purchase, your parents may have initiated the "true cost of ownership" talk. Examples: "So you want a dog. Are you going to train it? Spend time with it? Feed it?" and "Driving is an expensive privilege," followed by the itemization of principal and interest on a loan, plus insurance, fuel, maintenance, and car wash costs. Have you had the same conversation about college expenses?
Chances are, you know the tuition charged at your college. You may have already earmarked a portion of your own savings or applied for student loans to help cover the cost of the first year of school. But if you think freshman year just costs the tuition, room, and board figure that the school gave you, hold on to your wallet.
The first payment your family made to your college was most likely the application fee. Ranging from $15 to $65, it probably seemed a small price to pay for the promise of a lifetime of opportunity. Those small prices add up to a hefty bill by the end of a semester. True, the application fee is a necessary expenditure. But so are a lot of other things that simply aren't included in tuition.
>> Don't assume that you'll never need groceries just because you purchased a meal plan. And even though you won't "need" it, you and your friends will order a pizza every now and then.
>> It's not unusual for a single textbook to cost over $100--those that come with CDs or other extras can cost even more. Look for used versions of the books to lower the cost; textbooks and supplies can cost New England college students over $800 per year.
>> Consider your major and any special materials or equipment that your classes might require--including a computer, printer, software, paper, and ink--and see whether the school can provide them for free or at a discount. Be prepared to pay lab and program fees if you are involved in extracurricular activities.
>> Whether you're homesick, in the mood for Mom's turkey on Thanksgiving, or responding to a family emergency, you'll be traveling home at least once or twice during the school year. Look for student fares when you purchase bus, train, or airline tickets.
>> Most colleges require that students enroll in the university health plan. You may be covered by your parents' insurance, but this coverage is sometimes mandatory. And don't forget to estimate how much you'll spend on prescriptions during the school year and budget accordingly.
>> Your personal expenses—toiletries, laundry supplies, clothes, entertainment, cell phone, haircuts, etc.—will add up. You'll probably have to make some lifestyle adjustments to live within your budget, but about $1,500 per year is a fair estimate for "miscellaneous" spending.
Similar to owning a car, going to college is an expensive privilege with obligatory costs that aren't always evident or may not seem significant during the excitement of its newness. That's why being informed about college savings and student loans is so important.
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