This is a guest post by seventeen year old Eva Baker, founder of TeensGotCents, let me know if you would like to guest post on Make Money Your Way.
Eva
Eva Baker is a high school student passionate about preparing for her financial future and helping other teenagers prepare as well. When she isn’t rock climbing at the gym or pinning ideas for her non-existent wedding, she documents her financial journey over at TeensGotCents.com. Find her on Facebook, Pinterest and Google+!
Eva has already guest posted on Reach Financial Independence about how responsible she is with her money and how she plans for her future as a teenager. If you missed it, you should check it out, it is a great read and awesome to see someone so young with a retirement envelope!
Graduating from college debt free is a goal that I have had for a couple of years. Although I am only seventeen years old I know that taking on huge amounts of student loan debt is not how I want to start the adult portion of my life! There are several ways to do this and teens have more options than ever before when it comes to graduating debt free from college. If this is important to you then it is just as important to map out how you are going to do this and plan accordingly. Here are some of the things that I plan to do so that I can achieve my goal:
Use dual enrollment to earn your high school and your college diploma!
Dual Enrollment
Dual enrollment is a great way for high school students to earn college credit while also earning credit toward high school graduation and is available in most states. I had to take a standardized test and have the scores needed in order to qualify. As a dual enrollment student in Florida you do have to buy your own books but the tuition is free! You are limited to two classes per semester (in my county) and only high school juniors and seniors are eligible to participate. Dual enrollment is a good option to get as many college credits as possible before ever even graduating from high school! I have several friends who are not limited to the number of classes they can take in their dual enrollment programs and will graduate high school with their AA degree. Be sure to carefully check with your local community college to see what the requirements and limitations are to enroll in the program. It is best to start that process the January BEFORE you plan to enroll for the fall term. If you plan to pursue an Associate or Bachelor degree then you should contact the school you hope to attend and make sure that your dual enrollment credits will be accepted.
Scholarships/Contests
If you are really smart, are a hard worker, or have some combination of the two, then getting a scholarship could be a great way to graduate debt free. There are many academic scholarships available to students but there are also other types of scholarships that may be available to you. But there are so many other ways as well! Are you good at sports? Does the company your parents work for offer scholarships to children of employee’s? Are you willing to enter a contest in order to win money to put towards college? You can find entire books devoted to scholarships and contests at your local library to give you plenty of ideas on how to get started. My brother was a finalist in the VFW ‘Voice of Democracy’ contest two years in a row and won a little over $1,500 in cash prices that he put towards his undergraduate degree. (I have a feeling that entering this contest is in my near future as well.) You can read about my friend, Tim Caiello and how he won a full scholarship to the school of his choice by working very hard at academics in order to qualify for scholarships. His goal was to go to school debt free and he put in the time and effort to achieve that goal while he was still in high school.
This will be a whole lot more fun if you don’t have thousands of dollars to pay back!
Living At Home/Going To A Local School
More and more people my age are planning to attend a local school in order to reduce the overall cost of college. The cost of living on campus or getting an apartment can almost double the cost of college for the average person. Although some people need to go to a specific school to pursue what they want to study most of us can find a program that suits our needs very close to home. My plan is to live at home while I am in college so that I can keep my costs as low as possible.
Working While In School
Another way to avoid taking out student loans is to work while you are in school. Many colleges and universities have opportunities to work right on campus which is really convenient if you don’t have a car. You can also get a part time job off campus as well. If you are a hard worker most companies will work with your school schedule. It wasn’t until recently that I realized that many people take out loans not only to cover tuition, but also to cover their living expenses. What’s worse is that sometimes students are buying expensive clothes and eating out for every meal – on BORROWED money instead of doing everything they can to keep costs low! Don’t do that! Instead of borrowing money you can get a job, spend carefully and graduate debt free.
Skip It Completely
This is the ultimate way to avoid student debt and is an option that is growing in popularity here in the U.S. In an article written by Andrew Dalbanco for the New York Times “Illiberal Arts” ‘Is College Worth It?’ and ‘College (Un)bound’ Mr. Dalbanco describes William Bennett’s (former education secretary) outlook on college. “In the search for employment, he believes, a college education confers less advantage than is commonly assumed and leaves students with crushing debt. He would prefer to see the United States emulate countries like Germany, where most young people are tracked into vocational training, and he wants more Americans who do go to college to study science, technology, engineering and mathematics rather than what he calls “irrelevant material.” An infographic that appears in Time Magazine ‘Is College Worth It?’ shows what the Pew Research Center found as it took a look at the value of a college education for today’s families. This really is something to consider. College isn’t for everyone. Don’t be locked into attending university just because you feel pressured to do what everyone else is doing. Make the decision that is best for you.
To tell the truth I absolutely hate school. I work hard and make good grades but it is not my favorite. If I could do what I wanted with my life without a degree you can better believe that I would do it! However, I have decided that I want to be a respiratory therapist, and I have to go to school. Thankfully it is only a two year degree which will further reduce my costs.
How are you planning to keep cost down while in school? If you already have a degree, what worked for you and what would you do differently?
be centsible!
Eva
This post was featured on the Real Simple Finances, Teens Got Cents, Streets Ahead Living, Your PF Pro, thank you!
Well since I am already out of college I kinda of wish I didn’t go. Sure it was fun and I met some wonderful people but the money that I owe and the bad decisions I made. If you can pay for it by working or get scholarships and you want to go I say go for it. Going to college and not having any debt after is definitely a win win in most cases. What I do doesnt even have a major in college at this point.
Thomas | Your Daily Finance recently posted…The First Step Toward Becoming a Real Estate Investor… It’s a Doozy
My mom has friends who say the same thing, that they wish they hadn’t even gone. I am hoping to get scholarships but am also willing to work throughout!
Eva recently posted…How To Get A Part Time Job – REI
Good for you for being so proactive about not graduating with debt! If I could do it again, I would probably work at side income from day one of my college career, try to freelance write more, and apply to way more scholarships while I was in high school.
DC @ Young Adult Money recently posted…How I Conquered $1,000 in Food Bills
The hard thing about applying for scholarships is that it takes so long! It can almost become a part time job – but I guess that’s the point since you are basically ‘making’ money if you win the scholarship in the end.
Eva recently posted…Office Max Clearance – My New Desk
The time spent on applying for scholarship is nothing compared to the return you get.
Plus, the more scholarship applications you do, the easier and faster it’ll get. I earned $100,000 in scholarships. Graduated debt free through 1 Bachelor’s and 2 Master’s degrees.
SavvyFinancialLatina recently posted…Home Buying Tips for First Timers
I was told early on in high school that I had to get a scholarship. It wasn’t presented to me like there was any option. That motivated me to get good enough grades and got me through college. I’m still grateful to my parents for their tough love (although at the time I grumbled more than a little).
William Cowie recently posted…Rent vs Buy — Issue #1 Under The Microscope
That is great – not the grumbling – but the motivation! 🙂
Eva recently posted…Graduate Debt Free and Podcasts…
What a thoughtful approach! If more teenagers thought like this we would have fewer problems both with debt and with unemployment. It sounds like you’ve got a great outlook on how you want to start your adult life, which will serve you very well. Though I didn’t graduate with any debt, I do wish I had worked more during college. I just think it’s a great way to learn how to balance responsibilities and how to begin handling money while out on your own.
Matt Becker recently posted…5 Tips For Traveling With a Baby
Did you know that Pauline graduated with $25,000 in savings!!! She is amazing and I know that I have a lot to learn from her! I was astonished that she could save so much as a student!
Eva recently posted…Making Money As A Teenager – by Pauline Paquin
I hope that my kids take all of these steps when the time comes. We are planning on paying for most of their college, but I would like them to get a part-time job to keep up with their expenses. I would absolutely LOVE it if they graduated debt free.
Holly@ClubThrifty recently posted…Secret Formula Revealed: How I Keep My Expenses Low
I think it’s good for the student to have some ‘skin in the game’. We know someone who is able to pay for their daughter to go to school but she is responsible for all of her own expenses – including her car. It has been a great plan for their family.
Eva recently posted…Frappuccino Recipe – Make Your Own and Save!
GREAT stuff here, Eva, and good for you for having a plan in place! I agree too, about reconsidering college altogether. It’s not always the smartest option.
Laurie @thefrugalfarmer recently posted…How to Pay off Debt: It’s About More Than Budgeting
Thanks Laurie!
Eva recently posted…Lost Or Stolen Wallet? 7 Things To Do Now
The fact that you are already thinking about the cost of college in your teens makes me have faith in the future of America! Congrats on being financially aware at such a young age. I was not, unfortunately, and it took me until I was 25 really to get a hold on my finances.
I do agree that college is not the best return on investment but I do want to add that unfortunately, a lot of jobs require bachelor’s degrees now which didn’t in the past, something I don’t agree with. So for a lot of people, even if you want to become a manager of a fast food joint, you still need a bachelor’s degree, even though in my opinion, experience trumps studying from a book. So it’s great that you’ve found a career path that works for you!
As far as scholarships go, I was a recipient of a Ford Motor Co. scholarship while my mom worked there, so yes, parent’s jobs are often a great source of free money. (strangely, the scholarship was included on her taxable income though, so be prepared if that happens). I’m sure you’re already aware of this, but there are some totally wild scholarships out there too! There’s even scholarships for being tall, lol. Hope you get as much free money as you can get. 🙂
Tara @ Streets Ahead Living recently posted…Too much time on my hands
That’s awesome – I’m almost 5’7 so I might have to try for that one! 🙂 Good point about needing a degree. You really need to know what you want to do – and you don’t always know what that is when you are still young.
Eva recently posted…Frappuccino Recipe – Make Your Own and Save!
I decided early on not to go to college after high school, because I was in the IT field and had plenty of opportunities available to me. It’s worked out very well, I don’t regret it at all. I usually council others to decide what your direction will be, then decide if college is the best way to get there. For those that don’t have a clue what they want to do with their lives, a 4-year degree is an expensive way to find out!
FI Pilgrim recently posted…July In Review – Income/Expense and Net Worth
Exactly. It seems to me that it would be better to get a job – anything – and work for a year or two while you figure things out instead of living on borrowed money to get a degree that you may never use. But to be honest, that’s really hard for teens to do because there is so much pressure to go to college no matter what.
Eva recently posted…Graduate Debt Free and Podcasts…
I have no doubt, Eva that you will figure out a way to graduate college without any debt! These are all great ideas. My husband spent hours and hours (this was pre-internet days) researching scholarships and applying for everything. He graduated with just $5,000 in student debt. So he didn’t graduate debt-free but we wiped out that $5k very quickly. I think it’s very smart to take college courses in high school if you can. It’s something I would definitely encourage my girls to do when they are that age.
Shannon @ The Heavy Purse recently posted…How to Ensure Your Goals Align with What You Truly Want
Thanks Shannon. It is a lot of work to apply for those scholarships but to graduate with only $5,000 in debt had to make it all worthwhile! I’m really looking forward to my college classes. Of course three books (one a paperback workbook) cost almost $200. My mother almost had a stroke! Too bad the free tuition doesn’t come with free books! 🙂
Eva recently posted…Graduate Debt Free and Podcasts…
I used to look at things like scholarship contests and just assume that I would never win, when you think about it though someone has to win so why couldn’t it be you! Nice post.
Adam @ Money Bulldog recently posted…Recycling Mobile Phones for Money ~ The Advantages
I love this post as much as your last! You are so very inspiring Eva. To echo what Matt said, if more young people were like you this world would be much better off. Don’t shy away from working in college (even full-time). People will tell you that you shouldn’t bother, but don’t listen to them. Working through college was a wonderful thing for me both financially and career-wise.
Nick @ AYoungPro.com recently posted…Five Frugality Rules to Improve Your Life
It’s great you’re thinking about this ahead of time! I almost missed out on a partial scholarship because I never expected someone like me with my grades in college even qualified for anything, but mine was based on merit. They are out there if you look, even if you’re not a genius like me. 🙂
Budget and the Beach recently posted…First World Problems
I didn’t graduate debt free, but I did work while I was in college, took AP classes in high school which gave me credit toward college, and went to a community college for my first year. For the remainder three years I attended a college that was 5 minutes away. I don’t regret going, as I enjoyed my time there and really liked the courses I took (for the most part), but if I had to do it again, I would have at least chosen a better major! I took the costs into consideration while I was a senior in high school as well, and even though I was accepted into all different colleges, I knew I would come out ahead financially if I took the plan I did. I do kind of wish I had gone away to college, but I’m happy with how things turned out overall.
E.M. recently posted…July Goals Review & Goals for August
In my opinion, college is worth it. There are, undoubtedly, some majors that you should avoid, though. I worked throughout college in order to pay for most of it prior to graduation.
Daisy @ Prairie Eco Thrifter recently posted…Get Your Home Ready for Fall and Winter
I worked the entire time that I was in school, to help cover all living expenses and entertainment costs. They weren’t super demanding jobs, just the campus computer labs or tutoring other students– but they definitely helped!
jefferson @See Debt Run recently posted…The Benefits of Research When Buying a Car
I did the same thing, Jefferson. Well, apart from it helped me financially, it also helped me gain experience.
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I have not spent much time looking for ways to graduate debt free. It is good to know. I sincerely hope when my kids are ready they will show as much interest in being debt free and leave no stones unturned as you are doing now. You are doing awesome!!
Good for you for trying to graduate college debt free. Great tips. I also worked while in college, but still have some debt, but manageable. (I have a lot more debt from grad school and I was working full time). The difference is probably the tuition. Undergrad I went to a state school with reasonable tuition. Private universities are so much more expensive and not always worth it.
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Yes! Get scholarships! They are so worth it 🙂
But the problem with scholarships is that more often than not they are only for smart kids.
Marissa @ Thirty Six Months recently posted…How To Invest In Property The Right Way
That’s true! I wrote a similar article on graduating without debt and it’s completely possible. I’m glad to see others are doing the same successfully. Wouldn’t it be great if everyone could graduate without debt and start their careers without all that extra stress of student loans!!
It’s great that you know what you want to do and how to achieve that. Going to college and racking up debt when you have no clue what you want to accomplish is really a waste. I think there are good life lessons anyone can learn by attending college, but going into debt for life lessons isn’t very smart. Like some of the other commenters, you give me hope for the future generation.
Kim@Eyesonthedollar recently posted…A Long Term Investment Plan for Future Retirees
Good for you, Eva! It sounds like you’re ready to take on college in a smart and financially savvy way. Best of luck to you.
Alexandra recently posted…Your Journey to Financial Freedom, Step Six: Make More Money
The student debt problem begins with financial education more realistic expectations. Every college decision should be made after performing some basic return-on-investment analysis. As a lawyer with a tremendous amount of student debt I’m currently busting through, a little ROI analysis ten years ago would have went a long way.
Lindsay Lee recently posted…How to improve your chances of going bankrupt in Australia
Nice Post Eva in happines and bright future career planing is best. My mom also help me how to manage career planing.
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