By Aaron Allen, The Portland Medium
Finances FYI Presented by JPMorgan Chase
When it comes to college, paying for tuition and housing may be major expenses, but there are other costs associated with college that many people, including students, often overlook.
Expenses related to books, school supplies, transportation, food, and entertainment can add up quickly. Without proper planning, these expenses could impact a student’s ability to continue their education.
“Student life can get expensive,” says Quincy Crawford, Branch Manager for JP Morgan Chase. “Careful planning and setting a realistic budget will help you start the school year on a strong financial footing.”
According to Crawford, planning and establishing a realistic budget can help students begin the school year with a solid financial foundation.
Transportation is an essential factor for many students and can be a significant part of their budget. For students who don’t live on campus, additional expenses like transportation, parking, and incidentals need to be considered to manage their finances effectively.
“While it may be ideal to roll out of bed and into the classroom, it isn’t a reality for most,” says Crawford. “Before arriving on campus, take a look at the available transportation options and compare costs. If you need to rely on public transportation rather than just the campus bus, keep an eye out for student discounts or monthly rates that can ease the burden on your wallet.”
“If you plan on bringing a car to campus, familiarize yourself with your school’s parking policies and rates to ensure you get the right parking pass,” adds Crawford. “Pay close attention to street signage on and around campus; sometimes knowing where not to park is just as important.”
Of course, for most students, dining out and entertainment are vital parts of college life, and these costs must be factored into a student’s budget planning process. This is especially true for students who are leaving home for the first time and don’t have the luxury of finding food readily available in their kitchen every day.
“Everyone loves the dining hall, but most aren’t open 24/7,” says Crawford. “When you need fuel for a late-night study session or if you’re exploring a new part of town on the weekend, make sure you set a budget and stick to it. Check to see if local restaurants offer student discounts or have special affiliations with your school. Some attractions, such as museums and art galleries, may offer discounted or even free admission to students. Taking a break from your studies and experiencing everything your college town has to offer is an important investment in your personal growth.”
At the college level, students are responsible for the cost of books and supplies, which can be one of the more expensive resources outside of rent and monthly utilities, depending on the student’s major.
“Whoever said ‘you can’t put a price on education’ probably hasn’t bought an organic chemistry textbook recently,” jokes Crawford. “Shop smart. Look at the prices of used books, rentals, and digital-only options. Consider reaching out to your professor to inquire if an older, and likely more affordable, version of a textbook will suffice. When it comes to other unique supplies like financial calculators or lab equipment, check with friends or students who have taken the class before. See if anyone in your student network may be willing to lend you a used item or help you acquire what you need at a lower cost.”
Additionally, Crawford emphasizes the importance of investing in technology to be effective and efficient during coursework. Managing your budget to afford up-to-date technology is essential, and knowing how to spot and take advantage of good deals is equally important.
“Nearly everything is done online, including major exams,” notes Crawford. “You need to ensure you have the right technology to excel.”
“Major software companies like Apple and Microsoft offer student deals and education pricing on both hardware and software,” Crawford adds. “Technology isn’t one-size-fits-all for all areas of study. Check with your department to get a better idea of your technology needs for this semester and the coming years to avoid having to make additional technology purchases later on. While saving money is important, make sure you are spending what you need for reliable technology. And don’t forget to ‘save’ early and often.”
Crawford also advises students to start saving money and create an emergency fund early on. Initiating your savings, even as early as high school, can prepare you for unexpected college expenses and life after graduation.
“The earlier you start saving, the better off you will be in the future,” says Crawford. “While your main focus is to learn as much as you can, if you have a part-time job and can set aside even a small portion of your income, you’ll be better prepared to handle an unexpected expense or a ticket home for Thanksgiving.”
Managing your money can feel challenging, especially in college. A budget can help you understand how much you want to save or spend and lead to smarter money decisions. To stay on top of your finances and develop sound financial habits early on, visit chase.com/student.
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.
