19 Chapter Nineteen: Paying for College and Personal Finance

Chapter Nineteen: Paying for College and Personal Finance

Do not save what is left after spending, but spend what is left after saving. —Warren Buffet, investor and philanthropist

Tracking Personal Spending Habits

Lots of students work hard and manage to cover the cost of attending college, but plenty find that they don’t have a lot left over for other important things, like housing and food. The idea of actually saving money—for things like clothes, entertainment, or other “extras”—may seem completely out of reach. In this section we challenge you to take a chance and try. You may be surprised to find that you can change your spending habits, gain better control over your finances, and wind up with money in the bank. Below are some common hazards you can avoid and tips to get you started:

• New spending responsibilities: If you’re starting college right out of high school, this may be the first time you’ve had your own checking account or received regular income from a job. It may be tempting to spend what’s left over after you pay for big items like tuition and books, forgetting that you still have other expenses. Even if you don’t spend a lot of money on extras, you may not be aware of strategies for saving money, such keeping an eye out for coupons and sales.
• Using credit cards: Young college students are often targeted by credit card companies because they have comparatively few financial responsibilities and generally have clean credit records. Owning and using a credit card can be an effective way to build a credit history, and it can also be useful in an emergency, but credit cards do carry significant risk: If you don’t pay them off in full every month, they accrue interest—sometimes at a very high rate—and the total amount you owe can become an enormous financial burden.
• Neglecting to pursue scholarships: Many college students are either unaware of scholarships they qualify for or they just don’t follow through and apply. Take advantage of the financial aid office at your college. Ask questions and get help finding out what’s available to you. You may be passing up an opportunity to get “free money” for tuition, room and board, and books.
• Recreational activities: Unlike high school students, college students don’t generally have classes all day, so they may find themselves with hours of free time. To fill that time, they may want to go to places like restaurants, movies, and shopping centers. These activities add up fast and cost more money than eating on campus with a room-and-board plan or cooking meals and socializing at home.[1]

Most of these points have budgeting skills in common. Budgeting involves knowing how much money you have and where it’s going. The following activity will help you figure that out.

Activity: Personal Spending Habits, Part I

Objectives

• Track your personal spending habits

Directions

• Monitor what you spend money on for a week.
• Use the template, below, to record your findings.

Weekly Spending Tracker

Total Income:

At the end of the week and after reviewing your spending habits, did anything surprise you?—such as, “Who knew that I was spending so much on pizza and parking?”

Saving Strategies

Whether you are starting college as a single eighteen-year-old or you are older, working, and raising a family, there’s a set of basic financial strategies that can help you lower your expenses and save money while you’re in school. Analyzing your spending habits (as you just did) is the first step. Next, you can try the following:

• Create a detailed budget: Budgets will enable you to treat yourself while avoiding overspending. For example, you might allot $50 a month for going out with friends. If you’ve already spent $50, you should find alternative recreational activities for the rest of the month so you don’t have to borrow money that you set aside for other expenses.
• Cut down on meal costs: Looking for deals and using coupons at grocery stores will save more money than eating out. Students living in dorms may not have a lot of space and supplies for cooking, but they may still have room for a refrigerator and coffee maker to avoid overspending on snacks and trips to Starbucks.
• Save on transportation: Cut down on the cost of gas (or get rid of your car altogether) by walking to class, riding a bike, or using public transportation. Check to see whether your college offers free or reduced-price student bus/train passes.
• Look for discounts and used items: As long as a textbook isn’t outdated, you can often purchase used or discounted copies online or from other students. Need to furnish a dorm room or off-campus apartment? You’ll save a lot of money by borrowing household goods from friends and family or by purchasing them from secondhand stores.
• Apply for scholarships and minimize loans: To repeat, scholarships don’t have to be repaid, and they don’t rack up interest. Do your best to apply for everything and anything that you qualify for, scholarships-wise. Winning a scholarship can have a big impact on your budget and financial health.

Given the money-saving strategies just described, let’s return to the personal spending you tracked earlier and see where you might be able to save.

Activity: Personal Spending Habits, Part II

Objectives

• Track your personal spending habits
• Define strategies for cost-cutting in categories where you currently spend the most
• Explore savings opportunities for college students

Directions

• Carefully analyze the personal spending you monitored for a week during Part I of the activity.
• Identify the three spending categories in which you spent the most money.
• In which two of those categories could you cut costs? For example, perhaps you spent the most money on rent, food, and leisure. Rent is typically a fixed amount, but you may be able to brainstorm ways to save on food.
• Identify three strategies you will implement this month to save money.
• Follow your instructor’s guidelines for submitting your work.

Budgeting

A budget is telling your money where to go instead of wondering where it went. —Dave Ramsey, financial author

Without a personal budget, most people have a hard time gauging how much money they spend and where their money goes. If you have ever gone to an ATM to withdraw money and been surprised to discover how little you had left in your account, this section is for you. It’s also for anyone who wants to learn how to manage their money better and smarter—which is an invaluable skill to have during the penny-pinching years of college but also later on in life.

Budgeting Strategies

Even if you’re very conscientious about paying your bills on time and generally have frugal spending habits, creating and following a budget can put so much further ahead. In essence, a budget is a plan for how you want to spend money. It details how much money comes in each month and how much you’ve allocated for spending on each thing. The virtue of a budget is that it puts you in control of financial decisions—so you can avoid surprises at the ATM machine or at the end of the month. Let’s look at some strategies for creating a budget:

• Be realistic: People are often intimidated by budgets because they’re afraid the plans will be too strict or force them to cut back too much. Though a budget may reveal that you indeed spend a lot of money on clothes, that’s okay—it may just also need to show that you spend very little on restaurants and eating out to make up for it. Again, it’s about making choices and being realistic.
• Choose a timeline: Creating a budget for a fixed period of time will help you monitor whether you’re meeting your financial goals. The timeline you choose is up to you and your goals. For example, you might create a monthly budget to monitor how you spend your paycheck every month.
• Add financial padding: Even if you feel like your list of financial obligations is already long, try to set aside a certain amount each month for a “rainy day” fund—to pay for unforeseen expenses and emergencies, like car repair, lost textbooks, etc.
• Make adjustments as needed: While sticking to your budget is important, there’s nothing wrong with revisiting and adjusting your original targets. For example, if you find that you are actually spending $50 more per month on groceries than you intended (even after shopping for sale items), you may decide to save that money elsewhere in your budget next month—on entertainment, for example.

Even though you may not be able to afford “unlimited” trips to the movies each month, an effective budget can still account for leisure and entertainment activities.

Pros and Cons of Budgeting

While budgeting can be a useful financial tool, it may not be for everybody. Some people may feel more confident by balancing their checkbook to see how much they have at any given time. Still, many argue that budgeting helps people stay on track and avoid overspending on “wants” such as restaurant food, clothes, and entertainment, so they always have enough money for “needs,” such as rent/mortgage, utilities, and food. The following lists summarize the advantages and disadvantages of budgeting:

Pros

• Provides a realistic view of personal finances: A personal budget provides an honest snapshot of how much money you make and how much you can spend. It can help you avoid deceptive financial thinking, such as believing that you’re “flush” right after pay day, when you really need to save that money for an upcoming bill.
• Helps you avoid excess spending: Because a budget gives you insight into the total picture of your income and expenses, you can make realistic decisions about spending. As above, a budget can help you avoid having a faulty sense of your financial resources and remind you that even if you just got paid, most, if not all, of your check may need to go toward fixed expenses.
• Assists in goal setting: Since you get to decide how to allocate your money, a budget can help you set goals. For example, if you create a yearly budget, you could plan and account for an upcoming family trip and start saving money for it in advance without worrying about having the money at the last minute.

Cons

• Budgets take energy: Planning a budget takes dedication. Since most students lead busy lives and are balancing different demands like work, school, and time with family and friends, it can be easy to slip up. For example, if you have a stressful week at work or school, you might overspend while going out with friends and forget how much you budgeted for leisure activities.
• Results take time: Since most budgets cover a time period of a month, year, or even longer, people may become frustrated waiting to see if their financial situation is better than it was before. Frustration can lead people to abandon their budget and go back to overspending or neglecting to save.
• Budgets may be strict: Remember that one of the important strategies for creating a successful budget is earmarking money for “treats” and extras such as entertainment. However, in an effort to become more financially disciplined, some people make budgets that are too restrictive and unrealistic. This can backfire and lead to overspending in one area or abandoning the budget altogether.

Creating a Personal Budget

Even though you may be persuaded by the downsides of budgeting and think, “It’s not for me!” don’t give up until you’ve tried it. Tracking one’s income and spending is a good exercise for anyone, and if you follow the basic steps, below, it’s easier than you think:

• Calculate regular expenses: Using your bills, receipts, checkbook, and any other financial records you have, make a list of your regular expenses and record how much you typically pay each month or year. Since some expenses like grocery bills may vary from month to month, you’ll want to examine several months’ worth of receipts to come up with an average.
• Record your income: Identify all income sources and add up how much you receive during a given period of time. This amount should include all sources of money—from regular full- or part-time work and from intermittent sources, such as freelance jobs, babysitting, etc.
• Adjust your expense percentages, and set goals: After you outline your financial obligations and income, you can start deciding how much money you’d like to allocate for each expense. Start with fixed expenses such as rent, car payments, etc. Next, decide how much you want to devote to each of the remaining categories, such as food and entertainment. At this point you can also set specific financial goals. For example, you may decide to lower the amount you spend on clothes in order to pay off outstanding credit-card debt or save for a trip.
• Identify a method for tracking your budget: Develop a plan for monitoring your budget. You might decide to use an Excel or Google spreadsheet, a budgeting app, or a budget tracking tool provided by your bank. You can also write things down in a notebook. The method doesn’t matter, so long as it’s easy for you to access, use, and interpret.

Building Credit

Procrastination is like a credit card: it’s a lot of fun until you get the bill. —Christopher Parker, actor

Credit Card Opportunities

For many college students, who may not have a lot of money or even a job at all, owning a credit card may seem out of reach. Without money in an account and assurance that you can pay your monthly credit bill, the average student may not seem very “credit-worthy.” Still, it can be important to build a credit history for certain opportunities down the road (such as getting a loan to buy a house). You may be surprised to learn that there are plenty of companies that offer special options for younger customers, especially students. The following are some offers to look for:

• Error forgiveness: Since you may be new to the responsibility of owning a credit card, it’s good to look for plans with error forgiveness. This may include a 0 percent annual percentage rate (APR) for the first six months of a contract or waive user penalties if you miss or have a late monthly payment for the first time.
• No extra fees: Along with 0 percent APRs for the first six months, some credit cards don’t charge students for using their cards in other countries. This is a nice feature for students interested in studying or traveling abroad.
• Rewards for good grades: Some companies offer credit card agreements that reward students for excelling academically. For example, you may receive cash back every year if you maintain a certain grade-point average.
• Effective customer service: Credit card companies that have positive customer service reviews often provide extra support in answering questions from new customers. Some companies also have tools for their customers’ online accounts that help them pinpoint their spending and payment habits.[1]

Activity: Credit Cards for College Students

Objectives

• Examine credit card opportunities available to college students
• Explain the risks and rewards of credit

Directions

• Research credit cards that reference college students.
• Choose one credit card that you think offers good benefits for college students.
• Identify three reasons this might be a good credit card for students.
• What are some issues you think college students should still be aware of regarding this credit card or credit cards in general?
• What is the APR for this credit card? Why would this information be important for cardholders to know about?
• Follow your instructor’s guidelines for submitting this assignment.

Risks and Rewards of Credit

Credit cards can give students new opportunities, but owning them is also a big responsibility. Students should consider the advantages and disadvantages of credit before choosing the best plan.

Pros

• Saving money: Credit cards can be connected to checking accounts so that companies know where their customers’ money is coming from and they have an account to charge interest rates to. The account can help students practice saving money rather than needing to have a lot of cash on hand. This can make it easier for students to make large payments for things like tuition and unexpected expenses like vehicle maintenance or medical bills.
• Receiving benefits: In addition to cash back for good grades, credit card companies may offer other benefits such as store discounts, gas rewards, and points toward air travel.
• Building credit: If you pay off your monthly credit card every month on time, you will start building credit and have a good credit score early on. Your credit score can be an important factor later on if you decide to open another account or take out a loan. Some employers may even want to see your credit history.

Cons

• Overspending: If something is out of sight, it may be out of mind, and the same can be true of money. Sometimes people overspend with credit cards because it’s easy to think that you have more money than you really do.
• Interest: Credit card companies with student deals still typically include some level of APR or interest rate. If you don’t pay off the entire balance every month, using a credit card can be expensive. Suppose you decide to use your credit card to pay for $1,000 in school supplies and books. Credit card 1 has an APR of 10 percent, and credit card 2 has an APR of 24 percent. If it takes you a year to pay off the $1,000, you’d actually pay a total of $1,055.04 with credit card 1 and $1,134.72 with Credit Card 2—that’s $55 or $135 on top of the original $1,000 you charged. This example highlights the importance of making sure you pay off the balance as soon as possible AND choose a credit card with a lower interest rate.
• Debt: Unlike debit cards, credit cards allow users to borrow money that they can pay back at a later date. While this can be useful in emergency situations, you may end up charging more than you can afford to pay back right away, and you may find yourself saddled with debt. Carrying a lot of debt can damage your credit history and score.

Credit History and Credit Reports

You begin to establish a credit history as soon as you get your first credit card or get a loan. Your credit history includes information about the number of credit cards and loans you have and how conscientious you are about paying your bills. Three companies, TransUnion, Equifax, and Experian, collect this information and use it to create a credit report, which functions as a summary of your credit history. By law, you’re entitled to one free credit report each year from Annual Credit Report. Although you have to pay extra for your credit score to be included with your credit report, a lot of people use this as a quick reference to gauge how good or bad someone’s credit is. Different companies use slightly different ratings, but 300 or so is considered to be a low credit score, and 700–850 is considered to be high.

It’s a good idea to sign up for a free credit report from the Annual Credit Report, since other companies will charge to give you your credit history and score. The best thing is to keep track of your bills and pay them in a timely manner so you don’t have to worry about whether your credit is good or not. Potential landlords, banks, loan companies, car dealers, and even employers will often ask for your name and social security number so that they can obtain your credit information. Every business is different, but many use credit scores to evaluate prospective customers and decide how responsible or risky they might be.

Resources for Credit Issues

Maintaining credit is a big responsibility, and sometimes it can be challenging. For example, you might have to borrow more student loans than you want because you don’t have time to work while attending school, or it might be difficult to find a decent-paying job as a student or recent graduate. These are just a couple of issues that could threaten your credit. Repairing bad credit can take a long time—up to seven years—so it’s important to take action as soon as you’re having trouble paying bills or overspending. Different resources and options are available to help you deal with credit issues, including the following:

• Loan consolidation: Students may consider having multiple loans consolidated with the federal government so they have to make only one loan payment per month. While this may give you more time to pay off student loan debt, it may not be the best option, since the one monthly payment can cost more and accrue a higher interest rate. Students should talk to loan company representatives and financial aid resources at their institution to discuss other payment options, such as income-based payments in which the amount you pay each month is based on your income level.
• Credit counselors: Credit counselors are trained to help people develop personal budgets and to provide classes on savings and debt solutions. They may also offer debt management plans in which they work with your credit card and loan companies to arrange a deal and ask you for monthly deposits so that they can help you pay off your debts. If you are interested in a consultation from a credit counselor, you should ask family, friends, or your local government for references for reputable ones. You will also want to find counselors that do not charge customers too much for their services to avoid additional debt.
• Debt settlement plans: Debt collection companies will offer services to their clients that involve talking to credit card and loan companies and coming up with a plan to pay a lump sum instead of the total debt owed. Similar to finding credit counselors, you should contact local government offices to find reputable debt collection companies so you can avoid overpayments and scams.
• Bankruptcy: Bankruptcy is an official status that is obtained through court procedures, and it means that means you are unable to pay off your debts. People may file for Chapter 13 bankruptcy, which means they don’t lose any assets and have a payment plan of three–five years to pay off their debts, or Chapter 7 bankruptcy, which means they may have to surrender assets that can be used to pay off their debts. Bankruptcy damages your credit score, and the fees for filing paperwork and hiring an attorney can be costly, so it is important to consider other financial solutions first.

Credit counselors may be able to recommend budgeting and credit courses that will give you tips for managing your personal finances

Financial Aid

Studying is something I really love doing, and I just hope to have enough money for tuition. —Alexandra Kosteniuk, Russian chess Grandmaster

The Cost of College

Usually, when people hear the words college costs, they think of tuition and room and board. Unfortunately, those costs are only part of the picture. The real cost of college includes a much wider list of expenses, such as the ones below:

• Tuition: Tuition includes the cost of attending classes. This varies by school and also depends on how many courses and credits a student takes.
• Other institution-related fees: Most colleges also charge quarterly or annual fees that cover student services such as the library, athletics, and campus maintenance.
• Room and board: Room and board fees include the cost for housing and meals (usually on campus). These vary by school and region.
• Books and supplies: Most students need to purchase books during their college career. They also need to pay for basic school supplies and equipment (backpack, folders, pens, etc.). Some of these, such as graphing calculators and computers, can be expensive. While they may not be required to purchase them, many students find that it’s more convenient and efficient to own their own laptop or computer so they don’t have to borrow one or work around library hours.
• Living and transportation: Students living off campus and not living at home will have to think about paying rent. Whether you live off campus or in a dorm room, you might want to purchase household items like furniture and kitchen appliances. Students may also have vehicles that need gas and routine maintenance, or they may need to purchase passes for public transportation.
• Personal needs and entertainment: Students will need to pay for personal items such as clothing, toiletries, etc. They will also probably want to spend money on recreational activities, going out with friends, and so on.

College students are often aware of room and board expenses but may forget to factor in the cost of necessities like furniture, kitchen appliances, and other household items for their dorm or apartment.

Financial Resources

When it comes to covering all the costs of college, depending on how much money you’ve saved beforehand, you will probably want to investigate one or more of the following options:

• Student loans: Students can apply for subsidized or unsubsidized loans through the government. Your college determines the amount of each type of loan offered to you. Subsidized loans allow you to defer payment until six months after your graduate, while unsubsidized loans still accrue interest while you’re in college. Students may also obtain private loans through their banks. However, these types of loans are typically subject to more interest. Check the U.S. Department of Education
•  site for information on applying for different types of loans.
• Grants and scholarships: Grants and scholarships do not need to be paid back. Students can look for grant and scholarship options through the government, their schools, and their communities. They may be awarded on the basis of financial need, academic merit, or talent. You can visit your guidance counselor or financial aid office for listings of available grants and scholarships, or conduct independent research at sites like College Scholarships
• Jobs: There are a number of paid work opportunities for college students, ranging from work study to on- and off-campus jobs and internships. If you have the time to commit to working while you’re in school, it’s worth investigating all of them. The topic of student job opportunities is covered at length later in this module.

Activity: Personal Spending Habits

Objectives

• Determine the costs of attending the school of your choice
• Identify the potential sources of financial assistance available, including subsidized and unsubsidized loans, grants, scholarships, and work study

Directions

• Identify the college expenses you will need to cover.
• Research the college you attend and identify any additional costs that may be unique to that institution.
• Review resources that may help you pay for college in the “Financial Resources” section.
• Fill out the following table. Include at least four items under “College Expense.”

Applying for Financial Aid

Applying for financial aid requires planning and organization. Below are steps you can take to increase your chances of getting help paying for college.

Complete the Free Application for Financial Student Aid (FAFSA)

This free application asks students questions about their background, personal finances, and college, and provides information about what loans, work study, and other types of aid they might be eligible for. You may be unaware of factors that affect how much financial assistance you are eligible for, such as changes to your parents’ income or your job status, or having a sibling start college. This is why it is important to fill out a new FAFSA application annually.

Make Sure the Information Is Accurate

Although it can be a chore to track down exact amounts—and so much easier to estimate things like your parents’ or your income—failure to provide accurate numbers can mean that you may not qualify for all the financial assistance for which you’re eligible. Before you fill out the FAFSA form, be sure you have collected and have handy all the important information you’ll need. This includes your (and your parents’) tax forms, social security number, and income statements. The U.S. Department of Education’s Site for Federal Student Aid has more tips on how to effectively fill out your application.

Ask Your High School and College

If you’re still in high school or you recently graduated, ask your guidance counselor about grants and scholarships you could apply for. Your college will also be a good resource, since most institutions have their own scholarships and awards that are available to their students.

Ask Your Community

Check to see if your employer, place of worship, clubs, or volunteer organizations have any grant or scholarship opportunities. Although these sources may not offer as much as federal loans or college scholarships, they may help you cover the costs of books and/or supplies.

Check Due Dates

Whether you’re filling out the Free Application for Student Aid (FAFSA) or applying for scholarships, most organizations will have deadlines. These deadlines help ensure that if you are eligible, you will receive your financial assistance in time for the upcoming school year. If other people are helping you with your application—for example, teachers writing letters of recommendation for you—be sure to inform them of the deadlines and give them plenty of notice.

Write Strong Essays

Many scholarship applications will have an essay component. You can assume that the other students applying for a particular scholarship also meet the basic requirements (a certain GPA or above, certain demographic criteria, etc.), so it isn’t enough to just have good grades or be “eligible” for a scholarship. Often it’s the essay that can really set you apart. Take the time to write multiple drafts and have family, friends, or teachers provide feedback.

Working During College

Internships and work experience are a proven method of getting your foot in the door. —Duane Strauss, TV presenter and producer

Typical College-Student Jobs

College students can take on a range of jobs while in school, depending on their availability, experience, talents, and financial needs. For example, if a student is taking a lot of course credits in order to graduate early, he or she may not have time to work more than five hours a week. Let’s look at the types of jobs college students might have.

Work-Study Programs

Work study is part-time work that’s awarded to students as part of a financial aid package. Students can often find work study related to their areas of interest. For example, someone studying biology might have a work-study job taking inventory of lab supplies on campus. One drawback to work study is that because it’s based on financial need, students who have adequate resources for college but who want to earn extra money may not qualify.

Campus Jobs

Not all campus jobs are work-study related. Students may be able to ask their institution’s human resource director or individual campus departments to see if other work is available. For example, the office of the registrar might need help filing papers. It may also be possible to apply to become a resident adviser (RA) and get free room and board in exchange for living on campus and serving as a role model for students. Some students may prefer to seek work off-campus, instead, since they may be able to work more hours and avoid competing with other students for on-campus jobs.

Off-Campus Jobs

Students can certainly explore job opportunities in their communities. Such work might be related to a student’s field of interest—for example, a student interested in journalism might get a job writing ads for a local publication. Or it might be worth seeking a job that’s unrelated to school simply because it offers the most hours and pay. On the other hand, some may prefer on-campus jobs because their work supervisors are more respectful of their academic commitments and the need for flexible hours.

Internships

Similar to work-study opportunities, internships are usually related to a student’s area of interest. For example, a marketing student may get an internship working with a marketing director and contributing to the company’s social media campaigns. While internships can provide invaluable work experience, unfortunately it can be hard to find ones that are paid.

Summer Jobs

Students who are concerned about not having enough time to work during college may wait and find part-time or full-time work during summer break. Such opportunities can be found through one’s guidance counselor, financial aid department, community members, or even online. One disadvantage of summer jobs is that they don’t last very long, which means that it won’t feel like much of a break or “vacation” if you’re trying to earn a significant amount of money during that time.

Activity: What Type of College Job Might Be Right For You?

Objective

• Identify jobs that college students frequently hold
• Assess what type of job might best fit your current needs and situation

Directions

• Schedule a brief interview with a college representative from an institution who works with students to help them find jobs. This representative might be from the career center, counseling services, or the human resource department.
• Considering your field(s) of interest, personal skills, and lifestyle, ask the college representative the following questions:
  • What types of jobs would you recommend based on my interests and skills as me? Why?
  • What types of jobs would be most compatible with my availability/schedule?
  • What are the pros and cons of these jobs?
• After the interview, write a short paper (1–2 pages) summarizing what you found out. Do any of the jobs the college representative mentioned sound like opportunities you might pursue? Why or why not?
• Follow your instructor’s guidelines for submitting this assignment.

Working During College: Pros and Cons

Finding a job as a college student can be both exciting and stressful, and it’s not for everyone. For example, students who have already received tuition assistance through scholarships and have full course loads may not have enough time for work. Let’s look more closely at the advantages and disadvantages of working during college:

Pros

• Earning extra money: One of the most obvious benefits to working during college  is earning extra money for college expenses.
• Enhanced budgeting skills: Students with the responsibility of working may learn to budget their money better since they have to earn it themselves.
• Enhanced time-management skills: Students who have to juggle classes, work, and possibly other activities such as clubs or sports may actually excel in classes because they learn how to effectively manage their time.
• Networking: Students may not only get work experience in a field related to their interests, but they may also meet people who can help them later when they’re ready for a career. For example, a law student who gets a job as a file clerk with a law firm may be able to ask the lawyers at the firm for recommendations when she applies to law school.

Cons

• Lack of time-management skills: Though working during college can help students build time-management skills, those who aren’t used to balancing activities may struggle. For example, a student who heads to college straight from high school without any prior job experience (or with few extracurricular activities during high school) may have trouble meeting multiple academic and job obligations and commitments.
• Lack of free time: If students take on a lot of work hours while in college, they may not have time for other activities or opportunities, such as joining clubs related to their interests or finding volunteer work or internships that might help them discover career opportunities and connections. These “extras” are actually significant résumé items that can make students more employable after college.

Deciding whether or not to work while you’re in college is obviously a personal decision that involves your own comfort level and situation. Some students may prefer to put off looking for a job until after the first semester of college, so they can better gauge their work load and schedule, while others may prefer to avoid working altogether. For some, the question isn’t “Should I or shouldn’t I get a job?” but “How much should I work?” In other words, the challenge is to strike the right balance between schoolwork, social activities, and earning money.

Employment Resources

We’ve identified some categories of work that are typically available to college students, but what about the actual process of finding a suitable job? Students have a number of employment resources available to them on campus, online, and in the community:

• Career centers: Most colleges have a career center where students can learn about job opportunities both on and off campus and also during the summer. Career centers also have staff who can help students practice the interview process and write effective résumés and cover letters.
• Career fairs: Many colleges organize on-campus career fairs (like the one shown in the photo, below). Local—and, in some cases, national—companies are invited to set up booths and share information with students about potential job and career opportunities.
• Online job search: Web sites such as Careerbuilder, Snagajob, and even Craigslist post job listings for positions ranging from seasonal retail work to freelance writing opportunities. Students should look for listings that include company and contact information, so they can confirm that the leads are legitimate and reputable.
• Community businesses and places of worship: Students may be surprised by the job opportunities they can find right in their own backyard. Don’t overlook community bulletin boards in places like neighborhood coffee shops and grocery stores—someone always seems to need a dog walker, house sitter, or nanny. Churches, temples, and mosques are additional places that often have notice boards with “Help Wanted” listings.