Top 5 Financial Secrets Kept By College Students

financial secrets of students

Today there is no secret when it comes to college education and the costs associated with it. Tuition is really pricey now, though the costs are transparent and may be learnt with just a few mouse clicks. Likewise, there is no surprise that many young people struggle to make ends meet managing their personal finances. By the way, various surveys held by the Department of Education and US Treasury reveal that the financial literacy of millennials is at the lowest level.

So, when sending your kid to college this fall, you might consider that you know everything about where your money is likely to go. However, you are wrong. Some recent grads confessed that there are things college students don’t want their parents to know.

Secret 1. Some students spend the money you give for groceries on beer. In fact, the US Department of Health found out that college students totally spend $5.5 billion a year on booze. Following the estimates, that breaks down to $50 per student per month only on beer. So, maybe it is better to send a care package for your kid instead.

Secret 2. Procrastination brings high costs. For example, a student forgets to purchase a book for some class and before an exam he/she orders it and pays extra price for express shipping.

Secret 3. Fees charged for using ATMs which are out of the network add up fast. Most of student campus hubs and centers now have ATMs, but young people are usually hit with a fee unless that ATM is in their network. Parents should ensure that their children understand this.

Secret 4. Books are not likely to cost $2,000 per semester. Following the data presented by CollegeBoard, an average cost on books for classes comprises about $1,200 per year, meaning $600 per semester.

Secret 5. Some students don’t take the full course load. Graduation rates differ and depend on the school, though, basically it is taking students longer and longer to finish their degrees and leads to sufficient amount of extra cash spent on this. Parents should make sure that their kids are aware of the fact that the three-course minimum is unacceptable and that you are not going to pay for tuition for the fifth school year.