Latest / Life. Money. You.® Podcast / S3|E20: College Costs Unpacked

Transcript

S3|E20: College Costs Unpacked · Life. Money. You.® Podcast

• 0:12
  SPEAKER_01: All right, hello everyone, and welcome back to another episode of the Life Money You Podcast.
• 0:17
  SPEAKER_01: I'm Danny Bushik, your podcast host and Life Money You program manager.
• 0:21
  SPEAKER_01: And today we're unpacking the real cost of college, not just tuition, but all the hidden expenses that catch families off guard.
• 0:29
  SPEAKER_01: Because while the sticker price gets all of the attention, it's actually the everyday costs.
• 0:34
  SPEAKER_01: So think meal plans, housing to books, travel, and those unexpected life happens moments that really add up.
• 0:40
  SPEAKER_01: In fact, financial stress is impacting a majority of students.
• 0:43
  SPEAKER_01: So this isn't just about money, it's about the full experience.
• 0:46
  SPEAKER_01: And I'm joined here by an incredible group and some new faces to bring this topic to life.
• 0:51
  SPEAKER_01: So we have Alejo Torres, our director of financial well-being, and a father with a student heading to college this fall.
• 0:56
  SPEAKER_01: So he's gonna bring some both professional and personal experience to the conversation.
• 1:01
  SPEAKER_01: We have Maddie Austell, one of our summer interns studying finance and wealth management at the University of Florida, and a voice you may have heard in a couple previous episodes here this summer.
• 1:10
  SPEAKER_01: We have Chris Shaw.
• 1:12
  SPEAKER_01: He's also a summer intern from Purdue, studying finance and business analytics and information management.
• 1:17
  SPEAKER_01: And so everyone will be sharing their own experience.
• 1:20
  SPEAKER_01: He's here, and we're really excited to dive in.
• 1:22
  SPEAKER_01: I will say Chris did a lot of the research for this conversation.
• 1:26
  SPEAKER_01: So we will be referring to cited sources, both mentioning student choice, business insider, and admissionly.com, just to name a few.
• 1:34
  SPEAKER_01: And I'll leave the rest in the show notes for you.
• 1:37
  SPEAKER_01: So together, we're breaking down what's required, what's optional, and how to plan smarter.
• 1:42
  SPEAKER_01: Because the real question isn't just can you afford college?
• 1:45
  SPEAKER_01: It's can you afford everything that comes with it?
• 1:48
  SPEAKER_01: So let's get into it.
• 1:50
  SPEAKER_01: I want to kick this off by just asking what surprised you most when getting on college campus and starting to manage finances.
• 1:58
  SPEAKER_02: Yeah, so going to an out-of-state school, I completely underestimated the cost of transportation.
• 2:05
  SPEAKER_02: And many think it's just the flights back and forth to school, but it ended up being much more than that.
• 2:10
  SPEAKER_02: It's figuring out how to get a ride to the airport.
• 2:13
  SPEAKER_02: There's many airports.
• 2:15
  SPEAKER_02: Which one am I going to go to?
• 2:16
  SPEAKER_02: And then additionally, one of the other things that I really overlooked was even just the cost of classes.
• 2:22
  SPEAKER_02: Because while that sticker price includes the actual tuition, there's still so many study materials and books that you have to additionally purchase on top of that sticker tuition price.
• 2:33
  SPEAKER_02: What do you have to say about that, Krish?
• 2:36
  SPEAKER_00: Yeah, I completely agree.
• 2:37
  SPEAKER_00: For me, the thing that surprised me the most was probably all of the unexpected expenses that came with coming to college, whether that's the random Uber rides or the fees you get for returning a book late at the library, or even just the late night door dashes when you're hungry and studying, all those things quickly add up fast and can add a huge toll to your budget and your wallet.
• 2:56
  SPEAKER_03: My anxiety is rising already.
• 3:01
  SPEAKER_01: Yeah, I was gonna say nearly half of students are actually still relying on substantial parental support while the other half are financially independent once they get to campus.
• 3:10
  SPEAKER_01: So you guys mentioned a couple things, but let's talk about what's really required, right?
• 3:16
  SPEAKER_01: So like food, housing, books, materials, laptop, transportation.
• 3:20
  SPEAKER_01: I know Maddie, you mentioned that one off the bat, but talk to us a little bit about those variabilities and costs and what was sort of anticipated and um what you kind of hadn't expected.
• 3:32
  SPEAKER_00: So for me, I'll start off.
• 3:33
  SPEAKER_00: I knew that I'll have to pay a lot for tuition alone and for my apartment because I lived off campus this semester.
• 3:39
  SPEAKER_00: So of course the apartment costs quickly added up.
• 3:41
  SPEAKER_00: On top of that, you had the groceries, you had your apartment maintenance, you had all those random things that came into that play of like actually renting an apartment.
• 3:50
  SPEAKER_00: But something that did not stay like I did not anticipate for was that just all the things outside of the apartment, whether it's getting to and from classes, climbing up that huge hill that I have to climb, whether it's if I want to rent a VO bike or if I want to walk that day, or even buying that$30 campus transit bus, right?
• 4:06
  SPEAKER_00: All of that quickly adds up into something that you just don't account for in your total budget.
• 4:11
  SPEAKER_02: Yeah, I would say even one of the main things that I wasn't thinking about when I was going into college is the cost of having a social life.
• 4:18
  SPEAKER_02: I'm in Greek life and I pay about$4,000 a semester to be a part of my sorority.
• 4:25
  SPEAKER_02: And then in addition to that, it's just going out to dinner with friends, hanging out, like going weekend trips, and everything adds up really quickly.
• 4:33
  SPEAKER_02: And it's hard to be able to afford everything without feeling excluded from all that.
• 4:39
  SPEAKER_01: Yeah, and I'm thinking about moving in right now.
• 4:42
  SPEAKER_01: Alejo, what are some of you know, the most common move-in expenses you're experiencing with your first board and some that may have already caught you off guard?
• 4:51
  SPEAKER_03: Yeah, Danny, I know we've talked about this quite a bit, but you know, I have a steady stream of Amazon boxes arriving at my doorstep.
• 4:58
  SPEAKER_03: And so uh I think that's the most unexpected, you know.
• 5:03
  SPEAKER_03: Me and my wife are fortunate, you know, to have, you know, gone to college as well.
• 5:07
  SPEAKER_03: We were the first in our families to do so.
• 5:09
  SPEAKER_03: So we have that to lean on, but certainly uh sending your own child to college, uh, you're starting to see it from a different perspective.
• 5:17
  SPEAKER_03: And I think now not just the cost of college overall, but the cost of everything is is so much more.
• 5:22
  SPEAKER_03: And so uh we start to see that uh even with that, with the move-in and all the things that you have to gather.
• 5:29
  SPEAKER_03: Uh, especially my daughter is big about wanting to have a certain decor and theme to her room.
• 5:35
  SPEAKER_03: And so it's all the range, I guess, these days.
• 5:37
  SPEAKER_03: And so uh those were the unexpected uh things that we have noticed so far is this uh the the upfront cross of setting up.
• 5:45
  SPEAKER_03: And I thought that this would be more of a one-time, but I understand that themes change from year to year.
• 5:50
  SPEAKER_03: So I may have to go through this a few times.
• 5:53
  SPEAKER_01: Yeah, yeah.
• 5:54
  SPEAKER_01: Themes, roommates, apartments, they all change year after year.
• 5:59
  SPEAKER_01: And the average cost per student is about$1,300 on items like, you know, dorm furnishings, clothes, food, and actually electronics.
• 6:08
  SPEAKER_01: I think our research tells us electronics is the biggest line item and it might be variable depending on major.
• 6:14
  SPEAKER_01: So, Chris, can you tell us more about that?
• 6:16
  SPEAKER_00: Yeah, absolutely.
• 6:17
  SPEAKER_00: So, of course, being a business student, I have a lot of experience of the different softwares and tools needed of being in the business school.
• 6:23
  SPEAKER_00: But since Purdue is a very major diversified school, there's a lot of different people who require a lot of different softwares and access to a lot of different things.
• 6:31
  SPEAKER_00: For example, being a business student, I need a computer that can handle Excel o well, that can handle all my classes.
• 6:36
  SPEAKER_00: Can I have enough storage to like take all my notes and have all of my different documents ready?
• 6:40
  SPEAKER_00: But for example, say you're an engineering student, you need a different laptop that can maybe support your CAD softwares or your modeling softwares, things like that.
• 6:46
  SPEAKER_00: And that can add an additional expense.
• 6:49
  SPEAKER_00: But if you're a nursing student, you might need a specific software to help for your like your charting or like the different like vital signs or whatever you might need to be a nursing student.
• 6:57
  SPEAKER_00: So, first of all, buying computers which handle those specifications, that alone can be a huge expense.
• 7:02
  SPEAKER_00: Maintaining those, because I know my computer broke like the day before finals, one of my semesters.
• 7:08
  SPEAKER_00: So that alone took, I think, a couple hundred dollars just to fix.
• 7:11
  SPEAKER_00: And on top of that, first of all, buying the textbooks and everything needed and the specific softwares to handle those tasks, all of that are just a lot of unexpected things, which something the school might cover, something the school won't cover.
• 7:22
  SPEAKER_00: So just trying to navigate through that and figuring out what I need and what I can sort of just get from the school.
• 7:29
  SPEAKER_02: Yeah, I think it's definitely important as a student going into college to do some research to figure out which technologies you're gonna need.
• 7:37
  SPEAKER_02: Um, I'm also a business student, but I found it very helpful to have an iPad to take my notes.
• 7:43
  SPEAKER_02: So I'm not carrying around a million notebooks to all my different classes.
• 7:46
  SPEAKER_02: I have it all on the iPad.
• 7:47
  SPEAKER_02: But then again, that's a huge item that you're adding on to your expenses.
• 7:54
  SPEAKER_03: You know, Danny, one thing that uh I've been more mindful of recently is just some of the things that I've upgraded for my home and myself, uh, you know, TV in the basement, uh, you know, microwave that was, you know, was old and we replaced, you know, things like that.
• 8:09
  SPEAKER_03: Well, maybe if I held out to a little bit longer, that could have been some items that, you know, we sent uh Sophia off with, but now that we have to, you know, try to figure out how to how to get that on her list.
• 8:19
  SPEAKER_03: So um just be mindful of things that you know you can use and uh send off with your college student as opposed to having to go out and buy something new.
• 8:30
  SPEAKER_01: Yeah, let's talk a little bit about travel um in both of your respected areas, right?
• 8:34
  SPEAKER_01: Uh social costs of college that families might not be considering everything from Maddie's flights back home to same with Chris, right?
• 8:42
  SPEAKER_01: Even a bus ride um can be costly.
• 8:44
  SPEAKER_01: How do you both navigate some of those um unforeseen and planned trips, either back home or let's let's, you know, parents' weekend, right?
• 8:52
  SPEAKER_01: I know Alejo, you're planning for that.
• 8:54
  SPEAKER_01: It's right around the corner.
• 8:55
  SPEAKER_01: How do you guys plan for some of those expenses?
• 8:58
  SPEAKER_00: So I think one easy thing you can do is just communicate often with your parents, like, oh, this is when I plan to be back, this is what I'm gonna do.
• 9:05
  SPEAKER_00: Just so because, for example, if you are buying a ticket, buying it last minute can increase the price by a lot.
• 9:11
  SPEAKER_00: But one important thing for me at least is that I live two and a half hours away.
• 9:15
  SPEAKER_00: So my freshman year, I used to take the bus every now and then just because if I wanted to go back or I missed home.
• 9:21
  SPEAKER_00: And that alone was$55 one way.
• 9:23
  SPEAKER_00: So imagine$120 round trip bus ride just to go home, right?
• 9:28
  SPEAKER_00: But to mitigate that and navigate that the next semester, I spoke with my parents.
• 9:32
  SPEAKER_00: I was like, well, these are the weekends I plan to come back for spring break, this break, that break.
• 9:36
  SPEAKER_00: And let's just organize a way where you can pick me up and drop me off.
• 9:39
  SPEAKER_00: So we all just save that additional money and expense of just going on that bus.
• 9:44
  SPEAKER_02: Yeah, I would say that communication is very important with me being in Florida, being able to tell my parents when those parents' weekends are so that they can plan in advance because the football games already add up, the hotels, everyone's coming in.
• 9:59
  SPEAKER_02: So the prices just rise so quickly.
• 10:01
  SPEAKER_02: So being able to communicate in advance those dates so that they can plan ahead.
• 10:05
  SPEAKER_02: But then there are some times that you can't plan for.
• 10:08
  SPEAKER_02: For example, my freshman year, there was a hurricane and schools closed for three days.
• 10:15
  SPEAKER_02: And I couldn't go home with my friends because that was where the hurricane was hitting the worst.
• 10:20
  SPEAKER_02: So I ended up having to book a last minute flight out of the regional airport, ended up being around like$1,200 because that was the only choice that I had left.
• 10:30
  SPEAKER_02: Um, so there are like expenses like that that you really can't plan for.
• 10:34
  SPEAKER_02: So you're just making sure you allocate money aside, maybe even an emergency savings fund, just so you have that money available in case of those unexpected events.
• 10:43
  SPEAKER_03: Yeah, Maddie, love that.
• 10:45
  SPEAKER_03: You know, we always encourage emergency savings.
• 10:47
  SPEAKER_03: There's always unexpected expenses, right?
• 10:49
  SPEAKER_03: So we talk about that all the time.
• 10:51
  SPEAKER_03: So that is a key component to planning for college.
• 10:54
  SPEAKER_03: I will say though, just like anything, anytime we talk about money, Danny, you know, it it depends, right?
• 10:59
  SPEAKER_03: It depends on how far you are.
• 11:01
  SPEAKER_03: We have Florida, we have Indiana, my daughter's going to Marquette and Milwaukee.
• 11:04
  SPEAKER_03: And so it really depends on how far you are to determine your travel costs, but they are real and you do have to plan for them.
• 11:11
  SPEAKER_03: I I think we were looking at a story um where someone was, you know, just one trip was$1,500.
• 11:17
  SPEAKER_03: And that makes sense if you're playing for flights and Airbnb or hotel and of course all of the entertainment there.
• 11:23
  SPEAKER_03: And Maddie, you mentioned it, you know, sporting events.
• 11:25
  SPEAKER_03: As parents, you know, we get to kind of relive our, you know, college days a little bit and maybe go see a sporting event.
• 11:31
  SPEAKER_03: So uh you have to really look at these uh again, depending on how far you are, as little mini vacations, as we know, our weekends away, getaways, things like that, they'll cost you up towards a thousand, two thousand dollars.
• 11:43
  SPEAKER_03: And um, they add up if you if you have several of those trips.
• 11:48
  SPEAKER_01: Yeah, definitely.
• 11:50
  SPEAKER_01: And on average, the average cost to attend college is around$38,000 per student per year.
• 11:56
  SPEAKER_01: And this is beyond student loans itself.
• 11:59
  SPEAKER_01: And so when we think about then even just personal expenses, so that's uh what we're gonna get into.
• 12:04
  SPEAKER_01: Some of those not required stuff.
• 12:06
  SPEAKER_01: So we've already talked about eating out the dorm furniture and appliances, Greek life, like Maddie mentioned, um, maybe those additional trips um, you know, out of your city or wherever you're on campus.
• 12:18
  SPEAKER_01: And it's just wild to think about.
• 12:19
  SPEAKER_01: I know when we were talking through some of this prior, it's just a lot of that um variability can be controlled.
• 12:27
  SPEAKER_01: So let's talk about that, right?
• 12:29
  SPEAKER_01: I think about the example of living on campus versus off campus, right?
• 12:33
  SPEAKER_01: There's just so many trade-offs.
• 12:36
  SPEAKER_01: So, what's one of the biggest trade-offs you can think of when it comes to saving money with some of these things on campus?
• 12:43
  SPEAKER_00: Well, I believe that if first of all, if you're living on campus, you most likely have access to that meal plan, right?
• 12:50
  SPEAKER_00: So the monthly cost of the campus meal plan according to do.com is$525 per month.
• 12:56
  SPEAKER_00: That alone is a lot, which you are prepaying at the start of the year.
• 12:59
  SPEAKER_00: So it doesn't make sense why you wouldn't make the most out of that meal plan, right?
• 13:02
  SPEAKER_00: At the you have a certain amount of swipes, and at the end of the week, those swipes that you don't use go away.
• 13:07
  SPEAKER_00: So you're losing$8 a swipe night.
• 13:09
  SPEAKER_00: How many swipes do you have multiplied by the cost of that swipe?
• 13:12
  SPEAKER_00: All that is gone, right?
• 13:13
  SPEAKER_00: That's all wasted money.
• 13:14
  SPEAKER_00: So whether it's getting snacks at like the on the goes, or whether that's just going and getting a quick meal, a quick like break like between your classes, just get something, right?
• 13:23
  SPEAKER_00: Make the most out of those meal plans, even if it's a to-go box, just get that, right?
• 13:26
  SPEAKER_00: So at least you can make the most out of that$525.
• 13:30
  SPEAKER_00: Upon top of that, college students spent$480 a month eating away from campus, right?
• 13:35
  SPEAKER_00: So that alone is a huge expense.
• 13:36
  SPEAKER_00: If you spend more time eating in the meal, like in the dining halls and like in with the meal plan, that number can also go down where you can save that money to use for something else, whether that's classes, going out, some trips, right?
• 13:48
  SPEAKER_00: Little by little you can save, you can cut down on certain costs to save up for something a lot bigger and a lot more enjoyable.
• 13:55
  SPEAKER_02: Yeah, I would say one of the trade-offs for me when thinking about off-campus versus on-campus living was safety and security.
• 14:03
  SPEAKER_02: I would say some parts off of campus were not as secure or great areas to live in versus the dorm life or living in an apartment that's right off of campus.
• 14:12
  SPEAKER_02: So last semester or last year, I guess, I lived in my sorority house, which was only about$700 a month, which is great.
• 14:21
  SPEAKER_02: But it also wasn't in the best area.
• 14:23
  SPEAKER_02: I couldn't walk alone past dark, like seven o'clock.
• 14:27
  SPEAKER_02: I couldn't walk home from my later meetings.
• 14:29
  SPEAKER_02: So this year I'm living in an apartment right on campus, but now it's double the cost.
• 14:35
  SPEAKER_02: And obviously, with my parents sending me halfway across the country, their biggest priority is safety.
• 14:41
  SPEAKER_02: They want me to be safe.
• 14:42
  SPEAKER_02: So that is one of the bigger trade-offs that we had to think about.
• 14:46
  SPEAKER_03: Yeah, Danny, when I when I think about, you know, those costs, right?
• 14:50
  SPEAKER_03: There certainly is entertainment cost.
• 14:53
  SPEAKER_03: And, you know, part of that college experience is is you know, learning how to adult.
• 14:59
  SPEAKER_03: Um, you know, you have to have some fun.
• 15:01
  SPEAKER_03: That's part of it.
• 15:03
  SPEAKER_03: And I think there's a lot of additional benefits outside of what it gets you in terms of education and a job.
• 15:08
  SPEAKER_03: You learn how to, you know, become a, you know, you find who you are, and that's important.
• 15:13
  SPEAKER_03: There's there's value attached there.
• 15:14
  SPEAKER_03: Uh, but but certainly we have to, you know, look at how some of those costs can get out of hand, right?
• 15:20
  SPEAKER_03: So just like we do with our everyday uh budgets and looking at how much we spend, uh, I would encourage folks to to do a cost analysis.
• 15:27
  SPEAKER_03: Look at, you know, many times when you are set up with digital banking, you can see a spending analysis and where things are going.
• 15:34
  SPEAKER_03: Uh, just make be mindful of where that money is going and how maybe you might be able to have a conversation with your student.
• 15:40
  SPEAKER_03: Okay, we're spending way too much on on dining out when we have a meal plan, right?
• 15:44
  SPEAKER_03: So we need to cut that back, right?
• 15:46
  SPEAKER_03: So that that will give you information on where you can cut and maybe save some money in that space.
• 15:52
  SPEAKER_00: I I agree.
• 15:53
  SPEAKER_00: I think one of the biggest mistakes that college students do is spending on impulse.
• 15:59
  SPEAKER_00: Whether it's just going out because your friends want to go out and just feeling peer pressure, just go eat like Taco Bell or whatever food you want to eat at night, where you have food at home that you can make, right?
• 16:10
  SPEAKER_00: You have all those groceries that you bought.
• 16:12
  SPEAKER_00: Like, why don't you make the most out of those groceries?
• 16:14
  SPEAKER_00: So, first of all, they don't get expired and you're saving all that extra money you can use towards something else or even output towards like a savings account, right?
• 16:21
  SPEAKER_00: So just making sure that you are mindful of your purchases is very important.
• 16:25
  SPEAKER_00: So, first of all, make sure that you are in a financially like stable spot so you're not stressing about that, and so you can account for all the purchases you may or may not need to make in the future.
• 16:35
  SPEAKER_03: Yeah, and sometimes you won't know until you're actually in it, right?
• 16:38
  SPEAKER_03: And again, and and when you're actually seeing how much you're spending, when you're tracking that, uh, and that's when you can make those informed choices.
• 16:44
  SPEAKER_03: But yeah, absolutely agree.
• 16:46
  SPEAKER_01: Yeah, and as we uh start talking through some ways to mitigate right some of the issues when it comes to financial wellness in college, I think of the impulse spending like first, Chris.
• 16:58
  SPEAKER_01: So I'm so happy you brought it up.
• 16:59
  SPEAKER_01: And I know one way when I went to Marquette, I would handle that is I actually would pull out cash before my night out with friends.
• 17:08
  SPEAKER_01: So I knew where we were going to dinner.
• 17:10
  SPEAKER_01: I'm one of those people, I look up what I'm gonna eat online before I go out.
• 17:13
  SPEAKER_01: And so I would look up how much that would cost me and I would bring however much cash I knew I would need for that and maybe a couple drinks.
• 17:20
  SPEAKER_01: And once I knew I was up to my cash, right, tip included, my night was over.
• 17:25
  SPEAKER_01: So it was actually nice because it got me home sooner and I didn't spend nearly as much money as my friends did.
• 17:30
  SPEAKER_01: And I felt really good about having planned out my night before going out by budgeting in that way, right?
• 17:36
  SPEAKER_01: It's really easy to put constraints around what I want to accomplish when it comes to saving and spending.
• 17:41
  SPEAKER_01: What other ways do you guys go about mitigating some of the costs in college?
• 17:45
  SPEAKER_01: So we talked through trade-offs, but as we are talking through, I mean, entertainment is one of probably the biggest expenses that kids rightly should spend money on, but sometimes end up going over overboard.
• 17:58
  SPEAKER_01: I know in our research, over 50% of uh college students spend their money on media, entertainment, think concerts, think going out with friends, think of those things.
• 18:07
  SPEAKER_01: So, how do we go about really saving money, but also maximizing our enjoyment of that experience?
• 18:14
  SPEAKER_02: Yeah, my friends and I actually plan weekend trips ahead of time.
• 18:18
  SPEAKER_02: And so if someone's maybe not able to afford the place we're going to, we'll switch it around a little bit, make sure that everyone can be involved in a part of it and no one's excluded.
• 18:28
  SPEAKER_02: So I think even just checking up on your friends, like making sure that they're doing okay financially so that you are able to support them.
• 18:37
  SPEAKER_02: And even just like if it's instead going out to the dining hall to eat together, like not everything has to be a super extravagant plan.
• 18:44
  SPEAKER_02: There's ways to include everyone without spending a ton of money.
• 18:50
  SPEAKER_00: No, I completely agree.
• 18:51
  SPEAKER_00: Having that mutual understanding that all of us are college students, some of us have on-campus jobs, some of us don't, some of us are supported by our parents, some of us are not.
• 19:00
  SPEAKER_00: Some of us are international students, right?
• 19:01
  SPEAKER_00: We might not have that like special support that it's like the people who are from the United States have.
• 19:06
  SPEAKER_00: So just having that mutual understanding that yeah, some days we can go out to see these concerts with these live music, but it shouldn't be like an every week thing where we're all putting a toll on our budgets and our wallets, right?
• 19:16
  SPEAKER_00: So I think just knowing that like there's a time and place to do everything.
• 19:20
  SPEAKER_00: And if it's not that time and place, maybe choosing a more cost-effective strategy might be the better event to go to.
• 19:27
  SPEAKER_03: You know, Danny, we're when parents are involved in the mix, you know, it's just important that we just you have that conversation with your student and open communication and have them involved.
• 19:36
  SPEAKER_03: So whether it's a a monthly budget that you might be providing to them and you just have to stick to that budget.
• 19:42
  SPEAKER_03: And sometimes you might have to say, no, I can't send you this, you know, uh, you know, transfer some money to your account uh to go to this event or uh to sponsor what might you, sometimes that has to be part of the conversation.
• 19:53
  SPEAKER_03: But also where the student can help, where the student can maybe find an on-campus job.
• 19:57
  SPEAKER_03: And and you think that is important if they're if they haven't done it already in high school, uh, in college, looking to generate some income and learn how to manage their money and use that as their you know spending and fund money, uh, as well as put some on the side to save.
• 20:12
  SPEAKER_03: It's always important.
• 20:13
  SPEAKER_03: Uh, but that that has to be a collaboration between the parents and the student, uh, and and they have to have some skin in the game as well.
• 20:21
  SPEAKER_00: No, I completely agree.
• 20:22
  SPEAKER_00: Having an on-campus job, at least for me, might have been one of the best things that I chose to do in college.
• 20:28
  SPEAKER_00: And that's because one, like like besides like the financial aspect, it teaches you responsibility.
• 20:34
  SPEAKER_00: It teaches you like, this is what I'm doing with my money, this is how much money I have.
• 20:38
  SPEAKER_00: If I overspend, I won't have any more money left.
• 20:40
  SPEAKER_00: So just teaching you, well, this is my budget, this is how much I can spend.
• 20:43
  SPEAKER_00: And it also takes a toll off your parents too.
• 20:46
  SPEAKER_00: If I'm using my salary from whatever I make in my on-campus job for my own personal expenses, where it's food, going out, my random trips to Indianapolis, right?
• 20:55
  SPEAKER_00: Like, at least my parents won't have to worry about giving me that money when they could use it for their own stuff too, you know?
• 21:02
  SPEAKER_01: Yeah.
• 21:02
  SPEAKER_01: And networking.
• 21:04
  SPEAKER_01: That was huge for me, Chris.
• 21:05
  SPEAKER_01: So I worked in the president's office on Marquette's campus, and it helped me through my school get other opportunities for other full-time work.
• 21:13
  SPEAKER_01: So that's a huge opportunity for networking too.
• 21:15
  SPEAKER_01: And really quick, Alejo, I want to go back to you.
• 21:18
  SPEAKER_01: How are you preparing Sophia?
• 21:21
  SPEAKER_01: You know, you talked about parents having these conversations, and some of them might be easier than others, but what's kind of been, gosh, she's got another month and a half here.
• 21:29
  SPEAKER_01: What's what's been the topic of conversation to prepare her financially?
• 21:33
  SPEAKER_03: Yeah, well, I mean, it's a lifelong conversation, really, right?
• 21:36
  SPEAKER_03: And so uh we've been trying to, you know, put you know, positive money thoughts in her head for a long time.
• 21:42
  SPEAKER_03: And so, you know, we have already she's she's working, she's making her own money.
• 21:46
  SPEAKER_03: We're talking about how we put some of that away to invest and save.
• 21:49
  SPEAKER_03: Uh and she's, you know, it depends on the person too, right?
• 21:53
  SPEAKER_03: Personality and behavior, that's part of the mix.
• 21:56
  SPEAKER_03: Uh, she is very frugal by nature, and so I I have a, you know, probably better chance of her, you know, staying within budget than my other daughters who are already showing signs that they like to spend, right?
• 22:07
  SPEAKER_03: So that's part of it too.
• 22:08
  SPEAKER_03: But it's just that lifelong conversation about being responsible and learning how to manage money.
• 22:14
  SPEAKER_03: Um, so so that's certainly part of it.
• 22:16
  SPEAKER_03: But again, as I said, you know, in going to school, uh, making sure that they're managing their money money while they're on campus as well, and and part of that conversation on when they need help and when when the parent comes in to support that.
• 22:30
  SPEAKER_03: You know, I won't name names.
• 22:31
  SPEAKER_03: I was just with a colleague, you know, who was having that same conversation with his college student, you know, say, you know, hey, I need 80 bucks to cover for this cost.
• 22:38
  SPEAKER_03: And, you know, so uh sometimes that's gonna happen, but you know, having those conversations in a plan ahead of time is always gonna be helpful.
• 22:46
  SPEAKER_00: Absolutely.
• 22:46
  SPEAKER_00: And even finding alternatives, college students spend an average of$100 on coffee alone.
• 22:52
  SPEAKER_00: Like if you decide to make that coffee on your own, maybe just like like the microwave coffee, the Netflix coffee, get it from Walmart, get it from Target, wherever you want to get it from, get it from, make it at home, right?
• 23:02
  SPEAKER_00: For example, instead of like going out to eat quesadillas, you can make quesadillas at home for maybe like a tenth of the cost, right?
• 23:08
  SPEAKER_00: So it's just the the process of finding alternatives and sticking with them, right?
• 23:12
  SPEAKER_00: Not going based off impulse, not going based off, well, because my friends are doing it, I have to do it.
• 23:16
  SPEAKER_00: Stick to your budget, stick to your own plans and do what you need to do to make sure that first of all, you are financially stress-free and you are at a stable spot to take care of those unexpected expenses that might come in the future too.
• 23:27
  SPEAKER_01: Yeah, I think of being resourceful over falling victim to convenience, right?
• 23:31
  SPEAKER_01: Everything is so or tried to be convenient on campus.
• 23:35
  SPEAKER_01: And the truth is that you can be resourceful.
• 23:38
  SPEAKER_01: So I love all of those examples, Chris.
• 23:39
  SPEAKER_01: And it's a really good, I think, um, transition into adulthood after those great four years of um, you know, learning how to be an adult on your own.
• 23:49
  SPEAKER_01: I'm curious, if you went back a couple of years and you were not in college yet, what would you tell your younger self or what's the advice you would give your younger self uh before entering finances on your own as a college student?
• 24:04
  SPEAKER_02: Yeah, I actually had my first, not like real job, but I started babysitting when I was in sixth grade.
• 24:10
  SPEAKER_02: So learning that financial responsibility so early on, I think, helped me be able to better understand the money that I'm spending and the money that's coming in.
• 24:20
  SPEAKER_02: I don't have a job on campus, but I know that the money that I make over the summers, I'm gonna have to manage throughout the entire year.
• 24:26
  SPEAKER_02: So I think just learning that responsibility, even if it's a high school job during the school year or summers, like I was a lifeguard, just simple jobs.
• 24:37
  SPEAKER_02: They can really help you through and better understand financial responsibility.
• 24:44
  SPEAKER_00: No, I completely agree.
• 24:46
  SPEAKER_00: Having a job is very important.
• 24:47
  SPEAKER_00: I remember my junior year of high school, I used to work at a retirement home.
• 24:51
  SPEAKER_00: I worked there for seven-ish months.
• 24:52
  SPEAKER_00: And after that, I was like, well, I don't want to do this anymore.
• 24:55
  SPEAKER_00: I quit, right?
• 24:55
  SPEAKER_00: So, like, I then I was trying to find a different job.
• 24:57
  SPEAKER_00: I landed a different job, but just because they were paying me less, I was like, well, this is ridiculous, right?
• 25:02
  SPEAKER_00: So I just like, I was like, no, I'm not working here.
• 25:04
  SPEAKER_00: But if I had worked there, I would have had that additional money that I would have saved for college, right?
• 25:09
  SPEAKER_00: I would have had that additional couple hundred, couple thousand dollars that I could have used for like whatever college expenses I need to spend my money on.
• 25:16
  SPEAKER_00: Another thing is, well, first of all, just like I think door dashing, that alone took a lot out of my my wallet, whether it's like the$30 like late night taco bells or just like ordering for my friends, or like if we're like at an event and we're all hungry, right?
• 25:30
  SPEAKER_00: Maybe just cutting down on that, finding restaurants which are maybe closer by instead of just like ordering from like a far restaurant across town that you can maybe walk to instead, right?
• 25:39
  SPEAKER_00: I think just looking at all the different options and just thinking with an open, clear mind will be very helpful for you in college.
• 25:49
  SPEAKER_01: That's a tough one as an adult, too, uh, Chris.
• 25:51
  SPEAKER_01: My New Year's resolution at 31 years old was to delete the DoorDash app.
• 25:55
  SPEAKER_01: So I will say that's one in college, but sometimes it can get to you long after too.
• 26:00
  SPEAKER_01: Alejo, uh, two two questions for you.
• 26:02
  SPEAKER_01: What would you tell your younger self um before going off to college and being, you know, just introduced to all things finances on your own?
• 26:10
  SPEAKER_01: And then kind of what's the one thing you want to instill uh in your oldest before she heads off?
• 26:17
  SPEAKER_03: Wow, you know, so again, going back 30 years, so you're making me think back quite a bit.
• 26:22
  SPEAKER_03: Um but but certainly I think it's you know just having a little bit more cash or that emergency savings on hand going into college.
• 26:31
  SPEAKER_03: So, you know, uh, I I I've worked for a long time.
• 26:35
  SPEAKER_03: I worked in middle school, high school, and I was always generating income and it was always my spend money, uh, but I didn't save enough, right?
• 26:42
  SPEAKER_03: And so when when going to college, you know, yeah, you know, just came from different circumstances.
• 26:47
  SPEAKER_03: So I didn't have a lot of support from from family.
• 26:50
  SPEAKER_03: You know, we they did help with some loans and that sort of thing.
• 26:53
  SPEAKER_03: But going to college, I didn't have a nice, you know, fat bank account that I could lean on, you know, for expenses.
• 26:59
  SPEAKER_03: So just making sure that, you know, you build up enough uh savings and spending money and money that you might need going in, you know, the liquid money that you need for everyday things uh was was something I probably could have done better.
• 27:13
  SPEAKER_03: Um and then for for Sophia and you know, uh, you know, her going to college, I you know, I I just want her to be continue to be responsible um and be mindful of, you know, the the where that money is going.
• 27:28
  SPEAKER_03: So again, you know, going into uh we're gonna be actively looking together at the spending and tracking where it's going and how much is going where.
• 27:39
  SPEAKER_03: And I I she's pretty good about it, but I but I think it's helpful for us to have that conversation and her to see that so she knows where she needs to cut back.
• 27:47
  SPEAKER_03: So that's that's our plan.
• 27:50
  SPEAKER_01: Yeah, I think we have to have Sophia on the podcast after year one just to hear it real fresh.
• 27:58
  SPEAKER_03: For sure.
• 27:59
  SPEAKER_01: All right.
• 27:59
  SPEAKER_01: Well, what I would tell my younger self, and I wish I did this sooner, but I think everyone should do it as soon as they're comfortable and ready.
• 28:07
  SPEAKER_01: Start investing as soon as you can.
• 28:09
  SPEAKER_01: I mean, gosh, I wish I did it eight years ago, 10 years ago.
• 28:12
  SPEAKER_01: I mean, I just time is the biggest factor in accumulating more money.
• 28:17
  SPEAKER_01: And I think investing is doing it while you're sleeping, right?
• 28:20
  SPEAKER_01: So setting up that direct deposit from your bank account, um, use fidelity, use whatever is easiest, but just start small.
• 28:27
  SPEAKER_01: And honestly, I think I would be surprised at how much.
• 28:30
  SPEAKER_01: I'm already surprised at doing it for four years now, how much I've accumulated.
• 28:33
  SPEAKER_01: And gosh, I wish I had more time to add to that income.
• 28:37
  SPEAKER_01: So that's the one piece of advice I would probably tell myself.
• 28:40
  SPEAKER_03: Ditto, yes.
• 28:41
  SPEAKER_03: Uh and that's something that's a conversation I'm having with with, you know, Sophia right now as well is you know, how do we start that investment now?
• 28:49
  SPEAKER_03: Um, you know, whether it's an IRA or something to start building wealth and accumulating that compound interest that is amazing over time.
• 28:58
  SPEAKER_01: Definitely.
• 28:59
  SPEAKER_01: Well, we're gonna enjoy the little bit of time we have left with you.
• 29:03
  SPEAKER_01: Thank you both so much.
• 29:04
  SPEAKER_01: And Alejo, thank you for being on this episode and sharing your personal insight uh with your oldest.
• 29:09
  SPEAKER_01: And yeah, I'm super excited to get this episode out.
• 29:13
  SPEAKER_03: Thank you, Danny.
• 29:14
  SPEAKER_01: Thank you so much, Annie.
• 29:16
  SPEAKER_01: Thank you.
• 29:18
  SPEAKER_01: As a reminder, Life Money U is a financial well-being program owned by BCU, a credit union fiercely committed to your financial well-being.
• 29:26
  SPEAKER_01: Through LifeMoneyU subscription, you get credit union membership eligibility and access to a boatload of money-saving products and tools, one of which is free financial coaching.
• 29:36
  SPEAKER_01: So you can meet with a financial coach on your time to talk through boosting credit, crushing debt, or building an emergency savings fund.
• 29:43
  SPEAKER_01: We hope to have you on the next one.
• 29:44
  SPEAKER_01: Thank you all for joining.