Prospective business students often have misplaced priorities when they consider college expenses. Tuition, which should be priority #1, often comes after a long list of material things the students think they need, including automobiles, mini-refrigerators, microwaves, cell phones, iPods, stereo systems, portable TVs, matching custom luggage, etc.
Cell phones are one of the biggest money wasters. The most popular calling plans from T-Mobile, AT&T and Sprint run about $40 monthly, not including the cost of the phone. That is the equivalent of $480 annually. You may not think that is a big deal, but it is. Consider:
You could take out an education loan of $7,000 for exactly the same monthly cost as the cell phone. You would be paying interest on the loan which, after your graduation, would have to be repaid.
The other unnecessary expense that new students incur is the cost of an automobile. If you intend to live on or near the campus you can walk or take a bus to get to your classes. Plus, here's a novel idea: ride a bike. That's what they do in Europe. By riding a bike, you will avoid the expenses associated with an automobile (loss of value, maintenance, gas at $3/gallon, insurance, parking, etc.), plus you will improve your health. There is no better way to lose those excess pounds you put on in high school than by riding a bike every day.
Parents should consider all of these factors before they dip into savings, take out loans or negotiate second mortgages just to provide sons and daughters with all the material things they think they will need in college.
One final point: don't request "financial aid" in the form of scholarships or grants until you have done all you can do to minimize expenses.
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