Budgeting for College Expenses

It comes fast! Once your teen makes the decision of what to do beyond high school, suddenly you need to be prepared! Whether they want to head off to college or go into a trade or training. The days of thinking you should start saving for the future is more than just a thought. The time is now!

There is money to be had out there. Help your child fill out federal and school financial aid forms and apply for scholarships. If you are unfamiliar with this process (it is a daunting process), there are counselors at your child’s school available to help you. You may also need student loans to cover remaining costs. Remember that financial aid and grants don’t pay for some expenses, such as clothing, food, and car insurance. Consider taking out a private loan to have extra cash on hand to cover such expenses.

Have a Budget

Teens who have not managed their own money will be in for a shock when they head off to college. Create a budget to show your child how much money to spend each month. Review how to track debit and credit card spending, and discuss the importance of paying bills on time. They should also learn the value of saving! They might not have much left to save, maybe it is $20 a month. Stashing money away is a habit formed, so teach them early to form that habit with every paycheck or money gifted to them.

Apply for scholarships

Federal Pell Grants and state grants are loans that you do not have to pay back, making them essentially free money. Remember, that you get these by completing FASFA and this opens around fall for the next school year. Apply early- the early bird gets the best leverage of this pot of money!

Speak with your high school’s guidance counseling office, your college’s financial aid office, your employer, and community organizations to find scholarships you might qualify for. 

Once a senior in high school, apply for FASFA right away. Start talking with school counselors about testing dates and available scholarships and apply for all of them! Most scholarships open fall and winter and close by early spring. There is money to be had out there. When you know your balance, then a loan or savings can cover the rest.