There is a good chance that you are coming here today as a result of my guest post over at Lazy Man and Money where I dispel many common myths that young people have when it comes to personal finance while attending college. I have already received a bunch of emails from readers telling me how much they enjoyed my guest post. So what did I decide to do? Have a double post day today at Studenomics! Below I will dispel even more common myths about personal finance and college, so pretty much part 2 of my guest post:
Myth #4: You must buy new textbooks. This myth is rapidly decreasing as more and more students are realizing it is simply not feasible to purchase all new text books. However, if there are any students reading this site thinking that they for some reason still need to buy new text books then please read my popular post on how to save money on textbooks.
Myth #5: You must use the school’s health insurance plan. This is only true for students that have absolutely no other form of coverage. Most students do not even realize that they are paying apart of their tuition towards a school health plan. The reason most students don’t know about it? Simple, the school doesn’t tell you usually and you don’t find out unless you ask for a breakdown of your tuition fees. If you know for a fact that you are covered under your parents health plan or any other health plan then please cancel you health insurance plan with the school at the beginning of the semester. Believe me this will save you a couple of hundred dollars. Obviously don’t go cancelling your school health plan if you don’t have any other coverage.
Myth #6: You will save money by purchasing items on sale. The truth is the only way you will save money is by not buying stuff even if it is on sale. Think about it, how many luxuries does a student really need? Just because the Lacoste store is having a sale it doesn’t mean you should run over there and buy as many pairs of jeans as you can. This also ties into the key concept of delayed gratification which in this scenario pretty much means that the time you spend as a student should have a few sacrifices so that when you are done with college you will be debt free.
If there are any other basic assumptions about finances while attending college that you feel are a myth please list them.
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Great stuff for young students. I’m a young married couples sunday school teacher and I have a few that are using student loans. Your site would be great for them. I’ll pass it along.
I tend to agree with what you’re saying here, especially about buying things on sale. Look- “on sale” is just a catch phrase to bring in buyers to spend their money.
And it works!
Not only did I buy second hand textbooks, sometimes I didn’t buy textbooks at all. Some professors like solely using their lecture notes and slides, and for these classes, the textbook is usually a waste of money. It is wise to first talk to someone who has already taken a class in previous years with the same professor to find out how important it is to buy the book first. This will save a student hundreds of dollars over the course of a degree.
I just started a blog where I will be sharing my ideas of how to cut costs – feel free to take a look at it here:
http://www.richerandslimmer.com/
I’ve been to a few colleges and was never forced our tricked into the health plan. They always send out packets of info on it asking you to opt in.
Deciding whether or not to purchase a text book for a class can save you a lot of money. I’ve taken classes where I bought the previous version of the text and then compared the assignments to someone with the newer version and 95% of the time I didn’t miss a beat. Newer versions of textbooks are such a scam for poor college students.
Great post, it is sad to see how careless many students are in college because of the lack of basic financial education.
I am glad you have this blog, I fully support your mission to educate students on proper financial practices.
@tom Thank you very much for reading this blog and I hope to see you around! Please feel free to share your thoughts any time you wish.
I’d bring up one that starts with actually saving for your child’s education that is years away. In general, a tax-advantaged account like a 529 plan is a good idea, but just be aware of the consequences if your child doesn’t go to college. Also, many financial planners believe that America is heading toward much higher taxes, which would negate the tax-deferred growth in a 529. You can search for planners who specialize in college, retirement and other planning at http://www.claroconnect.com which matches your specific criteria to the right advisor for you.