finances

Remember These Dates in October

September 29, 2015 by Meredith

Big advances have taken place in transportation during the month of October in American history. There were cars, and ships, and rockets—oh my!

October 1

The Model T was introduced by Henry Ford in 1908. It could go as fast as forty-five mph! For almost twenty years, this cheap, reliable car dominated the auto industry because of the increase in car production as a result of the assembly line. See how the “Tin Lizzie” impacted transportation in America.

October 4–10

This week is Fire Prevention Week. Teach your kids fire safety and preparedness with these activities from Sparky the Fire Dog^®. It’s also a good idea to practice what everyone in your family should do if your house catches on fire.

October 11

Apollo 7 launched into space on this date in 1968 with astronauts Schirra, Eisele, and Cunningham on board. It was the first mission to fly after the fatal Apollo 1 accident and kept us on track for reaching the moon. The space flight lasted ten days and twenty hours. During part of that time, the first live television broadcast from space was recorded. Take some time to explain an astronaut’s rocket launch and reentry process to your kids with this Space Coloring Page created by a BJU Press illustrator. My favorite picture is the parachute one!

October 12

Columbus Day is named after the explorer Christopher Columbus, who ironically never reached the North American mainland. So what’s important about today? Don’t Celebrate Columbus Day offers a biblical lens through which you can discuss the actions of Columbus with your kids.

October 19

In 1781, the British surrendered at Yorktown, recognizing that the Americans had won. This event formally ended the American Revolutionary War, but some fighting did continue until 1783. Without the support of French troops and warships allowing Washington’s total forces to trap the British in Virginia, the battle could have turned out quite differently!

October 29

The Stock Market crashed on “Black Tuesday” in 1929. Prices on the market continued to decline for three years during what we now call the Great Depression. During this period of time, millions of people lost their jobs and had little money for food and other necessities. There were many factors that contributed to this financial crisis in our nation’s history. Find four simple ways to teach financial lessons to your kids so that they can make good choices now and in the future.

Taking Responsibility for Your College Finances (Part 2)

September 16, 2014 by Cosette

This is the third post in our college-planning series. Check out the previous posts—about choosing a major and saving for your college expenses—if you haven’t read them already. And come back next week for the last post in this series.

Got your resources all lined up? The next step for getting your college financial plan laid out is to tally up the total for the program you choose. It goes without saying that majors differ, and you want to move forward without surprises midstream.

Tuition and Fees

A list of tuition and fees per semester or per year appears on most college websites. Record the total tuition and fees for one year, anticipating a slight increase each year following initial enrollment. Take particular note of fees attached to specific programs. This could involve anything from art supplies to music studio rental, the cost of jet fuel (if you’re an aviation major), tutoring, and so on. And don’t forget charges for processing your reservation or taking exams.

Living Quarters—On Campus or Off?

The room-and-board cost listed on the college’s website should cover your living quarters and on-campus meals. Some colleges require freshmen to live on campus their first year. Though convenient, this will definitely impact your total. Estimate the cost of off-campus housing with rental fees, utilities, food, furnishings, housekeeping necessities, and possibly renter’s insurance to see if it will really save you money in the end.

The online option: Many schools offer a wide variety of online courses. This can mean big savings in terms of living expenses. While not possible for all majors and possibly not desirable for every semester of your college experience, distance learning could be a money-saving option for some courses.

Books and Supplies

You will probably want to include an average of at least $350 per semester for textbooks in your cost tally and possibly another $100 for supplies. Once you register for classes and have your book list, you can begin bargain-hunting. With minimal networking effort, you can sniff out used textbooks and sell books you’ve already used. Or check out places like Half.com (an eBay site). If you enter the ISBN of a textbook on DealOz.com, for example, it will search the main competing websites for the lowest prices on that specific book. Renting books is also a great option for books you don’t want to keep.

You’ll find almost anything you study is going to require at least a few specialized tools—anything from tech devices to art supplies and from poster board to special presentation binders—depending on the major, class, and teacher. It all adds up. So you will want to allow for these in your general expenses.

All That Other Stuff

Perhaps the most dangerous budget-buster is the “catch-all” category that expands to accommodate what doesn’t quite fit in other categories. This could include your cell phone bill, campus vehicle registration, auto insurance, gas, car repairs, school-related trips (e.g., debate club, sports teams, orchestra tour), laundry, recreation, greeting cards and gifts, organizing tools and other dorm room furnishings, coffee and snacks, clothes, shoes, and the list goes on! While you may not want to allot this category a huge amount, make sure to list all anticipated costs that aren’t included in your housing category—like cell phone and vehicle registration. Also, don’t forget big-ticket items such as travel expenses for Christmas break.

The Sum Total

Now comes the reckoning! Add up all the figures in each list, and find the difference between your resources (what you added up in the previous post) and your costs. You should now have a good idea of how much one year in college will cost. You can even multiply your cost (before subtracting your resources) by four and have the approximate total for your bachelor’s degree.

Are you surprised? View this information as a catalyst to seek the Lord for His provision. Don’t be discouraged! God provides where He leads. In His will, you will see His gracious hand working out the details you have put on paper.

How have you planned for college expenses?

Taking Responsibility for Your College Finances (Part 1)

September 9, 2014 by Cosette

Last week, we focused on how to choose a major. Today’s post is the first of two posts that focus on the financial aspect of a college education. We hope that you enjoy it and that you come back next week for the second part!

As you near high school graduation, hopefully you’re seeking God’s will for your life and are establishing goals for the future. Selecting a college that will help you reach those goals and develop your God-given talents is a big step. Once you make those decisions, you need to lay out a financial plan to get through.

The best place to start? Your sources of income or funding. Most students have four funding options—savings, work, scholarships or grants, and loans.

Savings

It’s never too late to start putting money into a (mostly off-limits) savings account. Saving doesn’t have to be huge chunks from every paycheck—you can start off by saving just 5 percent of every paycheck. However you decide to save, be sure that you are making good choices in how, when, and where you save or spend your resources.

Work

Find out if the college you’re planning to attend has on-campus jobs available. Besides saving on travel expenses, on-campus work provides an environment compatible with academic demands and schedules. To avoid overcommitting and possibly losing out academically, start out with just a few work hours per week. Then add more if you find you can handle it. Any job, on-campus or off, will be a testing ground for your communication skills, ability to work with others, integrity, and work ethic—traits that will certainly impact your future career.

Scholarships and Grants

Scholarships are a gift without any payback requirement, but they take effort to secure. Selection criteria can range from having a certain GPA to planning to pursue a particular field of study or being able to write a good essay. The usual success rate for scholarships is getting only 10 percent of what you apply for. If, for instance, you’re hoping for $25,000 in scholarships, you may have to apply for $250,000 worth.

Grants, like scholarships, do not have to be paid back. They’re normally awarded on the basis of “demonstrable financial need.” Most grants come through the state or national government or possibly the college you choose. As soon as possible, you should fill out a Free Application for Federal Student Aid (FAFSA^SM). Plan on spending as much time finding and filling out applications as you would in a part-time job—with a higher return for your trouble. You might even cover your entire college education this way.

Information about financial assistance should be available on the college website and from their financial aid office. Also, the reference section of your local library should stock a reliable scholarship guide. Be careful to avoid websites that request personal information or charge a fee to get into their database.

Loans

You’re likely aware that a loan is borrowed money that the borrower has to repay over time with interest. Borrowing can result in an ongoing burden after your college days are long past. It should be considered as a last resort and only after you’re thoroughly informed concerning every aspect of the transaction.

A loan consists of two elements—principal and interest. The principal is the total you receive from the lender, and interest is the additional cost you accrue until the loan is paid off. The type of loan determines whether interest is due from the beginning or is deferred. Of course, the longer you take to repay it, the more interest you will end up paying.

Education loans can come from either the government or private sources. Federal loans normally offer the lowest interest rates and the most flexible payment options. Besides that, if you have an adequate FAFSA score, you may be eligible for a subsidy—which means the federal government will pay the interest on your loan until you finish school. Subsidized or unsubsidized, loans are limited to a certain amount per school year. You should avoid borrowing more than you plan to make during the first year in your career. (Warning! A common pitfall for students is losing track of how much they borrow. It will help if you keep your documents and notifications in one file.)

College is a big step toward independent adulthood. How you steward your time and money will determine how well that journey begins. And ultimately . . . how well it ends.