Live at home while in school
While many college students would balk at the thought of living at home while attending college looking at the numbers helps you understand that you can save large amounts of money when doing this. Best of all you can save money that can create a cash reserve to be used after graduation!
- Rent- The amount of rent that can be saved over the four years of college can add up to quite a substantial sum. Since college students tend to share apartments rent can typically range from $350-$1000 per month depending on where in the country you are going to school. This can amount to a savings of between $4200-12,000 dollars per year amounting to a rather large sum to start a cash reserve with. If you are planning to live on campus the amount is about 50% of the above stated figures still amounting to a large cash savings over the course of 4 years. While on-campus living (dorms) can be cheaper than living off campus it still is a substantial expense.
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- Utilities- This amount can vary widely as well depending on the apartment or home the college student is planning on living in. A recent study showed that college students tended to pay about $150 dollars per month in utility related bills. This figure can go up or down and some landlords include it in the rent amount still another sizeable expense however it is figured. A year of savings then amounts to $1800 dollars that can then be added to a cash reserve.
- Food expenses- While college students will always be purveyors of on the go food studies show that most college students spend between $200-400 dollars per month on food. This figure tends to be high since they will often pick convenience foods that are typically higher in price. The food expense also varies widely depending on where the college student is attending school since some areas of the country are much more expense to purchase food in than others. A year of food savings by living at home can amount to between $3000-4800 dollars.
- Communication costs- Since you are living away from home you must budget into your expenses communication costs. Recent surveys among college students showed that on average they paid about $135 per month on phone and other internet communication charges. Adding up this figure over the course of the year shows a savings of $1620 per year or $6480 over the course of four years in college.
- Entertainment/clothes and personal expenses- Living on your own does not come cheap and college students have shown to spend about $275 dollars per month on entertainment and clothing purchases along with other personal expenses. While this is certainly a variable expense calculating a year long savings gives you a savings of $3300 dollars in this area alone.
- Insurance- Part of moving out of Mom and Dad's house means getting your own insurance. While some car insurance companies will allow students to stay on a primary policy if they stay within a certain number of miles other insurers insist the student get their own car insurance no matter where they move. Nationwide averages on car insurance are about $120 per month per student. Even a year of staying at home can net a savings of $1440. Health insurance is another matter that must be dealt with for the college student. For those lucky enough to stay on a parents policy there can be a huge cost savings, for those college students who must insure on their own (generally colleges offer some sort of health insurance) they should plan on about $125 per month. Staying at home gives you about a $1500 dollar savings.
