How I Helped My Parents Save $50,000+

May 21st, 2011 Joel Beattie Leave a comment Go to comments

Before I start out on my topic for today I have to first and foremost thank my parents for helping me pay for college. I know it is a privilege, and an opportunity that many do not get to have. That being said, I still was able to help by cutting over $50,000 out of the final cost.

When I was 2 years old my parents decided to move from Russian to America where there were greater opportunities for success. After years of saving, working multiple jobs and eventually starting up a successfully run jewelry shop my parents were able to buy a house in the northern suburbs of Chicago.

Their financial plans were going well until they found out how expensive college is.

In Russia, college was basically viewed as trade-school where you go to learn the skill of the job you will eventually be working. This means that going to college in Russia is much less of a financial burden on individuals and their families.

When I was 15 my parents sat me down and explained how much they could comfortably cover for college if I went to a four-year school and that they could cover all the expenses if I went to two years at a community college first, the next day I got a job.

Many parents don’t expect their children to work in high school so that they can balance school and extracurricular activities. I’ll admit there were times when I was stressed, but which 15-year-old isn’t? By working all through high school I learned independence, discipline and I was able to build a healthy relationship with money.

My parents had an open and honest conversation with me about college expenses and therefore I was able to set high expectations and goals for myself empowering me to save and become financially literate at a young age.

Savings Total: After three years as a weekend waitress, and two years as a camp counselor, I was able to save around $8,000 which easily covered my books and supplies throughout college.

I really lucked out when it came to getting in-state tuition. Some universities have much more difficult requirements on what needs to be done to become a resident of the state. If you have not yet started the college search process I highly suggest you look into in-state residency requirements as well when you search for the perfect school.

Being an Illinois resident, my college costs were much higher at the University of Missouri than my Missouri peers. Currently, the expected undergraduate tuition costs break down as follows:

$21,280: For in-state residents
$32,470: For out-of-state residents

So, for the same education and experiences students who do not fall within state lines pay a whopping $11,190 more.

When it came to gaining in-state I did not start the process until after my sophomore year after getting a bad case of the homesickness after my freshman year.

Regardless, after gaining in-state I was able to save my parents over $20,000 for the last two years. To give you an idea of how easy it was to gain instate, I basically just had to stay a full calendar year in Missouri, earn at least $2,000 at my job in the summer, apply for a Missouri license and file as an independent from my parents.

Savings Total: Two years of being an in-state resident ended up saving my parents a total of $22,000+

When looking at the total cost of college it’s hard to imagine that getting a part-time job can make a dent in any way, but working in college not only helps, but it opens the door for other opportunities down the road.

Once again, when it came to working in college I also feel incredibly lucky for the opportunities I was given. I believe that a big part of the reason I was able to land such good jobs in school was because I had garnered a lot of experience waitressing and working as a camp counselor in high school that could be applied in college.

For three years of college I worked as a Resident Advisor which covered my room and board; approximately $8,000 a year. Being an RA was challenging and extremely stressful at times but the connections that I made and things that I learned were invaluable.

Being an RA connected me to faculty and staff that helped get other jobs down the line, including the summer one gaining me instate residency, a desk job I was able to keep for two years and a job with the University Advertising Department my senior year.

The desk job helped me earn spending money, and I was able to study while I was working at the desk. My advertising job with the school helped strengthen my resume and ultimately land a job out of school.

Although working multiple jobs while trying to stay on top of school work sounds daunting, university employers understand that students have busy schedules and try their best to work around the busy schedule of a student.

Total Savings: Three years of having my room and board covered along with my jobs as an Advertising assistant and desk attendant saved a total of $27,000+

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I do want to say, that I wasn’t always an angel when it came to savings, like any college student is prone to my spending splurges and not all the saved money went directly towards college costs.

Adding up becoming an in-state resident, having room and board paid for and working side jobs I was able to save a total of: $57,000.

When you are a teenager it’s hard to imagine there is anything you can do to even begin to cover the cost of college. Hard work, disciplined savings and planning ahead can be the winning combination for any person trying to offset some of those stressful college costs.

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