Harris: College Students Preparing to Live on Their Own
By Charlestien Harris, Retired Financial Counselor at Southern Bancorp
If you ask the average young adult whether they’re ready to leave the comforts of their parents’ home, they will most definitely say, “Yes!” I know this because, when I was that age, I once said I couldn’t wait to live on my own. Little did I realize what I was saying. Knowing what I know now, I would have stayed in the “nest” just a little bit longer.
Preparing to leave my parents’ home for the first time was both a scary and exciting experience. I knew I could depend on my parents for some financial support, but I soon realized I had to become more responsible for my own living expenses and income. For many, this is the first time they’ve been away from their parents and the first time they’ve had to think about how they’ll survive financially.
Personally, I have a granddaughter headed to college this fall. She’s already sent me her college dorm room registry so I can purchase some of the items she wants for her move to campus! So, let me speak directly to the other seniors heading to college this fall. Below are a few suggestions to help make the transition from home to college a little smoother:
1. Start by Calculating Your Potential Income
This is a very important first step. Knowing where your income is coming from is crucial because your expenses will come from that same source. Possible income sources include parental support, part- or full-time employment, college work-study, internships, and scholarships. Consider all your options to get a complete picture of your college finances. Involve your family in the budget planning process. Determine how much income will be available from family sources, such as parents or a spouse, and be prepared to discuss how financial decisions will be made.
2. List Your Expected Expenses
Every budget includes expenses – that’s basic budgeting. To calculate potential expenses, gather financial information, categorize your spending, and estimate costs by tracking your habits. You may already be aware of some expenses, such as room and board, tuition, books, lab fees, and equipment purchases. Most colleges will send you a list of expected expenses before you arrive on campus. The more accurate your list, the better prepared you’ll be to cover those costs when they come due.
3. Estimate Your Dorm Room Needs
Dorm rooms typically come with only the basics: a bed, a chair, one desk, and a closet. You’ll need to provide your own bed linens, room accessories (like lamps, pictures, a television, and an alarm clock), and personal care items such as towels and soap. These costs can add up quickly. Some campuses may supply basic toiletries like toilet paper. One way to reduce expenses is to create a store registry and share the link with friends and family. Loved ones are often looking for the perfect graduation gift – and this is something you’ll actually use.
4. Consider Your Transportation Needs
Will you have a car, or will you rely on campus transportation? Owning a car on campus comes with expenses such as parking permits, registration fees, insurance, gas, and car tags. Don’t forget about maintenance costs like tires, oil changes, and routine servicing. All of these add to the cost of living independently.
5. Don’t Forget Food and Entertainment
Most students opt for a meal plan offered by the school. If that’s not an option, you’ll need to budget for groceries. Make a grocery list to avoid overspending, and try not to shop when you’re hungry – you’ll be more likely to buy unnecessary items. Some schools include student activity fees in tuition, which may cover access to campus events and amenities. Also budget for movies, occasional takeout, and food delivery services. These should all be part of your financial plan.
6. Know the Difference Between Needs and Wants
A need is essential for survival and well-being – like food, water, shelter, clothing, and healthcare. A want is something that enhances comfort or lifestyle but isn’t necessary, such as luxury items or specific brand-name goods. Understanding this difference can help keep your budget on track.
7. Beware of Credit Traps
Credit is an important part of your financial picture, but it should be used sparingly and only when necessary. If you don’t have the cash to pay for something, using credit may be an option – but overusing it can lead to debt and financial hardship. Mismanaging credit can also make it difficult to stick to a balanced budget.
Moving from your parents’ house to living on your own is a big adjustment, but it doesn’t have to be overwhelming. With a little careful planning, the transition can be smooth. Try to include as many necessary budget items as possible to ensure your budget accurately reflects your new expenses.
For more information on this and other financial topics, feel free to email me at charlestienharris77@gmail.com or write to me at P.O. Box 1825, Clarksdale, MS 38614.
Until next week – stay financially fit.
Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.
