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How Top Financial Blogs can Help Your College Financial Plan

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College Financial Plan

College can turn promising students today into the most important leaders and innovators of tomorrow. Aside from giving you an incredible platform to develop your talents, learn the skills and attributes which will likely shape your career, and introduce you to lifelong friends, it is, also, pretty fun. While some students get caught in the moment and party at any given opportunity, others are taking in the wealth of information at their fingertips. The best financial blogs out there can help you ensure that your future is bright, starting now.

Preparing for your studies can sometimes be enough stress without having to worry about the future as well. However, making sure you are doing everything in your power to work towards a comfortable life doesn’t necessarily have to be hard work. As a house is built brick by brick, stone by stone, on a solid foundation, so too is a successful life.

For many students, finances and money management do not come naturally. For others, things may be a little more straightforward. This does not have to mean that you are at any disadvantage when it comes to getting a financial plan in order. While your roommate may be able to tell you all about stocks, shares, real estate, and how business management works, you will find most, if not all, of this online.

Identifying The Top Financial Blogs

You want provable, easy to understand, and most of all, helpful information, which will benefit you in the long run. While you are likely to be some way from considering what type of mortgage you are looking for, or what kind of personal business loan to go for, you may need basic tips on managing your income for the next semester.

Finding the most suitable information will mean looking in the right places. There is a wealth of information to be found providing you are clear on what you need. After all, even rich people can go broke…

Unsure of What to Look For?

Whether you are preparing to start college or soon-to-be graduating, there is plenty of information which will be useful to you. For the majority of us, what is considered to be helpful will differ, so knowing where we are going wrong when it comes to handling our finances may push us towards how to rectify our mistakes.

If you are spending too much money on clothes but do not want to give up shopping, consider shopping online. Thrift stores have never been more popular, and you can even sell some of your wardrobe to fund your newest pair of kicks or heels. Simply look for tips on how to battle what is eating into your money and you may find the perfect solution.

How Personal Finance Blogs Can Help

We all want more money, right? Sometimes it seems as clear as crystal that the only way to get more money in the future is to find a new way to make more cash. This is untrue. You can also benefit from a healthier looking bank balance in the future by keeping it that way. It can be that simple.

Top finance blogs can help, by suggesting ways and means to help you keep on top of your spending. Common methods to consider are:

  • Opening a spreadsheet and inputting your income and outgoings
  • Creating a budget from the information you provide
  • Finding ways to cut down on unnecessary spending
  • Identifying the best stores to purchase groceries from
  • Selling items you do not want or need and saving the cash you make
  • Buying products in bulk

Learning to live within your means and be a little tight does not mean you need to give up on having fun. On the contrary, many students begin to enjoy finding new ways to save money and pay less for things, the smart and legitimate way. The best part, further down the line, is no longer fearing a visit to the ATM.

About the writer: Jeremy Biberdorf is the owner & founder of the popular investing blog modestmoney.com.  Check out his site for latest investing news and tips

Follow ModestMoney on Twitter and connect with Jeremy Biberdorf on Facebook.

How Reading More Can Positively Impact Your Finances

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read a book day

Although today is National Read a Book Day, there are many reasons you should consider reading every day. In fact, reading may positively impact your finances. Here’s how.

Read an Hour a Day

A number of studies show reading can positively impact your life. In fact, reading about a subject for just one hour a day will make you a national authority in just five years. Within seven years, you can be one of the best people in your field of study.

Furthermore, scientists have also found that people who read more are more likely to earn more than individuals who don’t. Individuals who read 10 or more books outside of an educational setting were found to make 21% more than those who didn’t read or read much less.

Other Benefits to Consider

If a 21% increase in earnings isn’t enough to make you want to make every day “Read a Book Day,” here are a few more benefits to consider.

1. People who read live longer.

According to a study conducted at Yale, people over 50 who read at least 30 minutes a day lived an average of 23 months longer than individuals who didn’t read or read only magazines. Researchers came to the conclusion that this is because reading books creates cognitive engagement. It can also impact empathy and emotional intelligence, leading to a longer life.

2. Successful people are readers. 

As mentioned above, people who read more earn more. However, it has also been proven that readers are also generally successful. This is because many of the most successful people out there are keen on improving themselves and read to do just that.

3. Reading more can lead you to be more open-minded. 

A University of Toronto study found people who read short-story fiction have less need for cognitive closure compared to those who preferred nonfiction essays. This means, overall, they were more open-minded than essay-readers. Although nonfiction reading can help you master a subject over time, fiction can help you expand emotionally.

Finance Books to Add to Your Reading List

If financial freedom is your ultimate goal, you can search for personal finance books that may help expand your knowledge and how-to. Here are a few books to consider adding to your reading list.

Readers, have you ever read a book that changed your life for the better? Let us know in the comments!

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Living on Campus vs Commuting: Which is Cheaper?

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Living on Campus vs Commuting
The price of college tuition is startling and, frankly, stressful for many parents and teens headed to school. That is before they even begin to consider the cost of housing in college, which exceeds $10,000 at many public universities in the United States. What is the difference between living on campus vs commuting when it comes to cost?

How Much Does It Cost to Live on Campus?

The main expense when it comes to living on campus is room and board. This usually includes your lodging and a meal plan for the year. For public colleges and universities, the average room and board fees are $10,440. Private schools charge around $11,890 for room and board, on average.

There is potential for saving money here though. You can pay less for fewer meals each week. Most of the time, college kids don’t even wind up using their meal plans anyway.

Other Miscellaneous Costs of Living on Campus

  • Room and board costs don’t cover 365 days of the year. Dorms oftentimes close during holidays and school breaks. Some schools won’t allow you to stay in the dorm and, if you do, it will cost additional money.
  • If you are aiming to go home over holidays and breaks you’ll also need to budget money for the trip home, whether you’re flying, driving, or taking another type of transportation.
  • Living on campus requires you to spend money on things like sheets, pillows, toiletries, desk and school supplies, hampers, and other items you’d otherwise have in your home. You may also need a mini-fridge, TV, or bed. These things can add up quickly.
  • Students moving from one extreme climate to another may also incur significant costs when it comes to preparing their wardrobe. Moving to a colder climate will require purchases like winter coats, snow boots, gloves, hats, sweaters, warm socks, etc.
  • Although there are free events on campus, there may be some social expenses as well. You may need to pay dues to join a fraternity or sorority. It is also possible you may want to go off campus for social events that may come at an additional cost as well.
  • Most schools also require you to pay a fee for parking on campus. Depending on the school, this can cost hundreds of dollars per year.
  • The school may also require you to pay a health fee for providing on-campus health care.
  • You will have an additional line underneath your room and board costs for technology as well. This covers the WiFi, computers, and other available technology on campus you can use.

With each of those costs in mind, students and parents often consider taking out additional loans to cover these costs. However, you should carefully consider the total cost of the loan after interest before taking one out for sorority dues and other miscellaneous costs.

Living on Campus vs Commuting: What They Don’t Tell You

While living on campus may seem expensive, unless you are continuing to live with your parents, commuting is just as much a burden when it comes to your finances. Commuters who rent their own apartment have to stress about paying rent each month. They’ll also likely need to hold a job, spend money on gas traveling to-and-from school, and buy their own groceries. However, if you are planning to stay somewhere off campus free-of-charge and bring your lunch each day, you could stand to save some serious cash.

One spectacular example of this is Katie Thompson. Thompson bunked with family members and lived off campus her entire college career. She paid off her small student loan (only $5,500) within two years of graduating. While she acknowledges that living off campus may have had an impact on her overall experience, Thompson said she can’t argue with the financial stability it has provided her in adulthood.

All in all, deciding between living on campus vs commuting will depend on your own personal needs as well as your financial standing.

Readers, did you live on campus in college? How much did you pay?

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First Student Loan? Use This Money Wisely

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student loan uses

Currently, there are approximately 20 million students enrolled at colleges in the US. And, when they graduate, around 70 percent of them will owe money on at least one student loan. In fact, the average student loan debt owed by a single graduate is over $37,000, based on statistics from 2016.

Most students view student loans as a necessary evil. Without the funds, they can’t afford college, leaving them with little recourse.

However, many students, especially incoming freshman, struggle to use the money wisely. But failing to act responsibly can come with significant consequences, ranging from failing to cover school expenses to increasing debt loads. Since approved student loan uses can vary depending on the kind of loan, knowing the right approach to managing this money is a must.

If you have your first student loan and aren’t sure how to handle the money wisely, here are some tips.

Educational Expenses

The primary purpose of student loans is to cover educational expenses. Federal student loans have strict requirements regarding how you can spend the money. Typically, funds from federal student loans are sent to the school first. This ensures the college receives payment for your primary expenses, including:

  • Tuition
  • Room and Board
  • Fees

After meeting these expenses, you can get a student loan refund from the school. Usually, this is a check that you can deposit in your bank account. Then, you can use the money for other qualifying costs, including:

  • Books
  • Supplies
  • Equipment
  • Personal Computers
  • Dependent Child Care
  • Transportation (Not Including a New Car)

By design, the federal student loan program almost forces you to use the money wisely. You cannot spend the funds on anything that does not qualify. If you receive an amount that exceeds your need, then an adjustment to your student loan may occur, or you have to use the excess to make a payment on your student loan.

There are 2 types of federal loans which is covered in detail here: https://www.purefy.com/learn/subsidized-vs-unsubsidized-student-loans

Private student loans are different. They aren’t always as restrictive in regards to student loan uses the bank views as appropriate. However, the exact terms vary by lender. You’ll need to read your loan documents to find out how you can use the money.

Additionally, the funds might not go to the school first, though they usually do. In cases where the money doesn’t go to the school, it is sent directly to you. After receiving the cash, you are fully responsible for paying your educational expenses.

While you aren’t under the same restrictions, it’s smart to use the federal student loan guidelines to help you spend the money in the right places. You always want to cover your educational costs first, beginning with your primary expenses and then your other qualifying costs.

After covering those, you do end up with some choices.

Additional Student Loan Uses

Once you handle your educational expenses and school-related costs, you have some decisions to make. However, if you want to use the money wisely, certain options are better than others.

For example, you can send the excess money back to the lender to pay down your student loans. This can help you lower your balance and avoid some interest, ensuring your debt remains as small as possible.

If you have a federal student loan and have an entire disbursement you don’t need, the easiest thing to do is cancel that loan. You have 120 days after the disbursement to handle the process but may need to work with your school’s financial aid office to handle it properly.

For private loans, you just send the money back as a payment. Usually, you can handle this online through your loan account portal.

What About Fun Money?

When you have student loan money that doesn’t have to be spent on educational expenses, it can be tempting to spend it anyway. The idea of a dinner out or a nice vacation during spring break may be enticing, or getting a new wardrobe may leave you invigorated.

The thought of spending the money usually relates to having a little fun, something that can be important in college. After all, earning a degree can be hard, so it’s easy to assume the mindset that you deserve a reward.

But, it’s important to remember that those examples above aren’t smart ways to spend your money.

Student loans are debt. This means you will pay interest on the amount you borrow. Furthermore, the size of your loans impact your creditworthiness, and large debts make it harder to finance other things you may want in the future, like a house or a car.

Plus, the higher your debt, the higher your payment. For example, if you borrow the average amount of $37,000 with a 6 percent interest rate, on a 10-year repayment plan, you’ll be paying around $411 per month. Over the life of the loan, that comes out to approximately $49,300, $12,300 of that being interest.

However, if you don’t use $4,000 of that money (just $1,000 per year) and send it back to your lender immediately, you’ll owe $33,000. The monthly payment then is about $366. You’ll pay a total of just under $44,000 (about $11,000 in interest), resulting in a pure interest savings of $1,300, not including the $4,000 in principal you don’t have to repay.

If you double the amount you send back, making it $8,000, you’ll get a bigger benefit. Then, you’ll borrow $29,000 and have a $322 monthly payment. You’ll repay around $38,600 over 10 years, with $9,600 being interest. That creates a total interest savings, in comparison to the first scenario, to $2,700. When you add in the principal you don’t have to worry about, you avoid $10,700 in student loan debt payments.

There are numerous repayment programs out there and there are even times your loans can be discharged, but don’t use this information to make poor choices, use it to gain more knowledge of paying loans back when the time comes.

Ultimately, limiting your student loan debt is always a smart move. It helps your creditworthiness, lowers your payments, lets you avoid some interest, and can even provide peace of mind.

If you want to be wise with your student loans, only use the money for important educational expenses. Then, if you have any left over, send it back to the lender. Your future self will appreciate your smart thinking and your wallet will too.

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Should You Buy Your College Student a Car?

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cars and college students
Preparing for college can be stressful. Oftentimes, many questions arise that you’ve never considered, like should you buy your child a car for college? When it comes to cars and college students, there are a number of things to consider before making a decision.

Financial Considerations

Whether or not your child needs a car at school depends on a number of things. Obviously, you want them to be able to travel to-and-from the grocery store and visit home without any mishaps. However, it may not be all that necessary for them to have a car on campus. In fact, many schools prohibit first-year students from having a vehicle on campus.

This is to promote freshmen to be more involved on campus and not travel home as much but it can have its financial benefits as well.

The average 18-year-0ld pays $3,148 in insurance each year. Annually, you can also expect to spend more than $1,200 on gas, $800 on maintenance, and around $700 on licenses, taxes, and registration. Not to mention that if your child decides to bring a car on campus they will also have to pay for a parking pass as well as other parking costs.

It is also good to consider the financial perks of having a car on campus as well. Although having a car may be expensive, on-campus stores usually charge high prices for snack items. Having a car can help save money on groceries. It can also provide a way for them to save money when traveling home for the holidays. Instead of an expensive plane ticket, they’ll be able to drive their car.

All in all, you will need to weigh out how much you stand to save vs how much you stand to lose when sending your child to school with a car. This should determine whether or not you decide to do so.

Best Cars for College Students

If you’re going to spend the money on it though, it is a good idea to do research and determine which car may be a good fit for your child. Luckily, Edmunds releases a list of best used cars for college students each year. Parents considering purchasing their college student a car should think about the options listed below.

  • 2014 Honda Accord Hybrid: On average, a newer used Honda Accord runs about $16,430. It gets 49 mpg city and 45 mpg highway. It is a popular car amongst college students because of its fuel efficiency and utility (seating up to five).
  • 2013 Volkswagen GTI: The GTI has an appeal to people who love cars. You can get a 2013 GTI for around $13,826. This model gets 24 mpg city and 33 mpg highway.
  • 2014 Mazda 3: Comparable to the GTI, a Mazda 3 is a bit more affordable at an average price of $12,770. It also gets better gas mileage at 29 mpg in the city and 39 mpg on the highway.
  • 2016 Toyota Rav4: For students looking for a bit more space and utility in their vehicle, there is the Toyota Rav4. You can get a 2016 model for around $21,235. It isn’t as great on gas mileage (23 city/30 highway) but you’ll have plenty of space for road trips.

When it comes to finding a car that will be safe and provide value for your student, you’ll want to go newer but used. Each of the options above, along with a number of other used cars may be the perfect fit for your child. The key to finding the right car is determining what will fit your budget, shopping around, and comparing prices as well as weighing needs and wants.

Readers, do you think you should buy your college student a car? 

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Where Can You Find Free School Supplies?

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free school supplies, back to school deal, school supplies promo

If you are buying school supplies for an elementary school student, you can expect to spend around $650 for everything on the list, based on data from 2017. A middle school-aged child may need $1,000 in supplies. If you have a high school student, the total comes close to $1,500.

The back-to-school shopping season is the second-largest during the year. Across 29 million households, the total spent will likely reach approximately $27.6 billion.

However, some families may be able to reduce their costs. In many cities, free school supplies are available, particularly to low-income households. Which programs are available depends on where you live. With that in mind, here are some free school supplies programs and the locations they serve.

Operation Homefront’s Back-to-School Brigade

The Operation Homefront Back-to-School Brigade provides backpacks filled to the brim with free school supplies to military children. The organization hosts 60 events across the country, largely at military bases.

Some of the events have already occurred, but many are still accepting applicants, as the program runs through August 9 in 2018. You do need to register in advance if you want to guarantee that your child will receive a backpack at an event.

If there isn’t an event near you, contact your local Family Readiness Group (FRG) as free school supplies may be available there instead.

Salvation Army

Another national organization that provides free school supplies to children in need is the Salvation Army. Some locations host events while others distribute the supplies on a less structured basis.

Typically, income restrictions do apply, though they can vary between locations. Contact your local Salvation Army to see if they are providing free school supplies and to determine if you qualify.

Kids in Need Foundation

With 40 resource centers across the country, the Kids in Need Foundation provides free school supplies to children in need. In 2017, they gave support to 6.2 million kids as well as 180,000 teachers, ensuring children had the items they needed to succeed.

These resource centers operate through an affiliate program including in partnership with Schoolhouse Supplies in Portland, Oregon, and KidSmart in St. Louis, Missouri.

Many of the resource centers only provide free school supplies to teachers, though this can allow educators to help kids in need who are learning in their classrooms.

Operation School Bell

A Phoenix, Arizona, program, Operation School Bell provides school uniforms to children from low-income families. To be considered eligible, your child must qualify for the free or reduced lunch program and selected by a social worker or another employee at the school.

The program also provides emergency to clothing to children who’ve experienced a qualifying tragedy, such as a fire or homeless.

Back 2 School Illinois

The Back 2 School Illinois initiative provides free school supplies to families in need who live in the state. In 2017, the program gave out over one million items to more than 34,000 children, mostly in the form of Back 2 School kits, each of which has about 30 pieces.

In August, the “BIG” Distribution Day Event gives out a stunning amount of supplies. However, assistance is also available all year through their numerous partners, including the Boys & Girls Clubs of Chicago and the YMCA.

It Takes a Village Back-to-School Event, Atlanta

The annual It Takes a Village Back-to-School Event provides free school supplies to families in need. They use a first-come, first-serve model and you need tickets to attend, though the event is free.

In 2018, the event is on September 7 at the Wolf Creek Library. Along with free schools supplies, there will also be food, drinks, and access to a range of resources.

Jefferson County School Supplies Distribution

Students in Jefferson County, Colorado, can attend a free event at Stevens Elementary School to receive free school supplies. The distribution of the items occurs over the course of a week in early August, though the day you can attend depends on the child’s last name.

Other Possible Resources

There are a lot of charitable organizations that may have free school supplies available. If you aren’t sure what is available in your area, there are a few places worth contacting.

For example, you can begin with your local United Way chapter. While they may not provide supplies directly, they can give you information on helpful charities in your area.

Local churches can also be an excellent resource, and you don’t always have to be a member to get help. You can also contact your local Love Inc. or similar groups to see if assistance is available nearby.

Another great resource is your child’s school. Often, school administrators, social workers, and guidance counselors are well informed regarding places that are providing free school supplies. They can likely provide you with contact information for a range of organizations, giving you the best opportunity to find free school supplies for your child.

Low-Cost School Supplies

If you aren’t eligible for free school supplies or still have some items on your list, certain stores tend to have lower prices on school supplies than others.

Michaels and Jo-Ann Fabrics, the craft stores, can be a great place to shop if you get your hands on good coupons. Both stores allow you to use multiple coupons on one transaction, making coupons that only apply to a single item easier to use. They offer print, mobile, app, and email coupons, so consider signing up for additional discounts.

Walmart is often a leader when it comes to low-cost school supplies, and they usually have supply lists available near the front door, making it easy to make sure you get everything you need. If you buy name brand school supplies, make sure to use the Walmart Savings Catcher on the app. That way, if another store sold it for less, you’ll get the difference back as a Walmart gift card.

Staples is another great option, particularly because of its price matching program. If you find the same product for less somewhere else (including on Amazon), they won’t just match the price; they’ll beat it by 10 percent. This means a little bit of research can help you save a bundle, making it worth the effort.

Do you have a great resource for free school supplies? Tell us about it in the comments below.

Looking for more great articles? Here are a few to get you started:

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