In this guide, we’ll explore how tuition reimbursement works and spotlight the companies offering the best deals.

What Is Tuition Reimbursement?

Employers use tuition reimbursement programs to help employees pay for their college education. These programs benefit both employers and employees:

• Employees get financial assistance to cover college expenses and reduce debt;
• Employers get skilled workers and satisfied employees.
• Employers can claim a tax credit for tuition assistance of up to $5,250 per employee per year.

Did you know: 47% of US companies help employees to earn undergraduate and graduate degrees by offering tuition assistance.^[1]

How a Tuition Reimbursement Program Works

Some employers cover the expenses of degree programs by reimbursing college costs once the employee completes the studies and earns the degree. Others provide upfront assistance and pay the costs directly.

Some employers offer additional funds to cover associated college fees.

Employees earn their degrees and use their education to bring new skills to the job, ensure professional growth, and create new career opportunities.

Note: Most employers have some eligibility requirements. You may have to choose a degree program relevant to your job and maintain a minimum grade average.

What Funds Can Employees Expect to Get From Employers?

The amount that employees can receive from employers isn’t set in stone. There’s no maximum limit. A company’s offer for tuition reimbursements depends on factors such as HR policies, company size, and the industry.

On average, business organizations pay:

• $5,250 per year for undergraduate degrees;
• $10,500 per year for graduate degrees.

Each employer has a limit on how much college costs they will pay, what GPA employees should maintain to qualify for reimbursement, which majors or courses qualify for tuition assistance, etc.

Note: For most companies, $5,250 per employee per year is the limit. This is the tax-deductible limit according to the 2021 IRS requirements.

20+ Companies with Excellent Tuition Reimbursement Programs

Here are some prominent employers that offer tuition reimbursement programs.

1. Allstate

Allstate allows their employees to pursue Allstate-related insurance designations, IT certification, and graduate and undergraduate employee college programs.

The company’s tuition reimbursement requirement is to agree to at least one year of employment with the company after completing the degree. The coverage includes academic fees, books, and tuition.

Allstate offers 100% education reimbursement up to $5,250 annually.

2. Amazon

Amazon now offers full 100% tuition coverage to its hourly workers. The program includes all related college fees, books, and the cost of studies for hourly employees who have worked at the company for 90 days. Since Amazon has no reimbursement requirement, workers can receive the funds upfront.

Amazon offered a similar deal in the past that paid for 95% of the employee’s college education through a career choice program. All workers looking for associate degrees and certificates can sign up for full tuition coverage with no lifetime limit.

3. Apple

Apple employees can get various employer benefits, including $5,250 for an annual budget to cover tuition and education expenses.

The employer also allows employees to hone their business, software, and financial skills by attending Apple University. Employees must work full-time at Apple to qualify for the benefits.

4. Best Buy

Best Buy offers tuition reimbursement programs for graduate and undergraduate degrees. Eligible employees can receive $3,500–$5,250 annually in coverage for tuition, school fees, books, and other education expenses.

Employees must work at Best Buy full-time (at least 32 hours per week) and receive a full-time employment status in the HRIS system listing to qualify for tuition reimbursement programs.

5. Capital One

Capital One offers tuition reimbursement for up to $5,250 annually for eligible employees through its partnership with Bright Horizons EdAssist Solutions. CO employees have access to more than 200 selected tuition programs and schools.

You must be a part-time or full-time employee at the company with at least 20 standard hours a week to qualify for the assistance program.

6. Chick-fil-A

Chick-fil-A has partnered with Scholarship America to create an educational assistance program that offers its staff scholarships and tuition discounts across more than 100 universities and colleges. The Leadership Scholarship awards $1,000 or $2,500.

The condition to join the programs is to have worked for the company for 12 months prior to application, been recommended by an Operator or Manager, and have a minimum grade point average of 2.5. The true Inspiration Scholarship awards up to $25,000, with the same requirements as the previous scholarship. You’ll need to maintain a minimum grade point average of 3.0 and demonstrate financial need.

7. Chipotle

Chipotle employees can receive up to $5,250 in annual tuition assistance through the company’s partnership with Guild Education.

Employees can also qualify for 100% tuition coverage for select college prep courses, high school diplomas, and undergraduate/graduate degrees.

Assistance and coverage are available for part-time and full-time Chipotle employees. Applicants must work at least 15 hours per week for four months.

8. Deloitte

Deloitte offers full tuition coverage to graduate degree employees. The company has launched its Graduate School Assistance Program to reimburse employees for the expenses of getting graduate degrees.

Employees must have two years of employment with the company to qualify. They must also work for Deloitte for two years after earning the degree to claim the reimbursement.

9. Discover

Discover has initiated the College Commitment program in partnership with Guild Education. Their employees have access to three tuition assistance options:

• Up to $5,250 a year in tuition reimbursement for bachelor’s degree programs at in-network schools;
• Up to $10,000 a year in tuition assistance for graduate degree programs.

The tuition reimbursement requirements include employment at Discover, maintaining a minimum grade point average of 2.0, and US residency.

10. Disney

Disney employees have access to schools within the company’s Aspire network. The company offers 100% tuition reimbursement for qualifying programs in the network.

Eligibility requirements include US residency and full-time or part-time employment of at least 90 days.

11. FedEx Ground

Package handlers at FedEx Ground have access to tuition reimbursement for technical or vocational certificates and trade and college degrees. The company offers up to $ 5,250 annually to cover the expenses.

Full-time package handlers are eligible for the tuition program after 60 days of employment. Seasonal workers can’t qualify unless their employment continues.

12. Fidelity

Fidelity’s employees can get up to $10,000 in annual tuition assistance for undergraduate/graduate degree programs. The company covers 90% of qualified tuition expenses.

To qualify for the program, employees must have at least six months of service with 30 or more hours per week.

13. Ford

Ford offers employees up to $8,000 a year, up to $600 of which can be used for book reimbursements, through its Education Tuition Assistance Plan to cover fees for eligible doctoral, master’s, bachelor’s, associate, and GED educational programs at approved institutions.

However, the programs must be related to the applicant’s position at the company. To get prepaid tuition, you must maintain active employment at Ford on the class start date and at least 90 days prior.

14. Geico

Geico offers tuition assistance at more than 220 educational institutions and providers to help associates with their individual courses, designations, certifications, associate degrees, master’s degrees, and bachelor’s degrees.

Full-time employees are eligible for annual payment plans of up to $5,250 per year on the first day of employment.

15. Herschend Enterprises

Herschend Enterprises provides their employees with 100% free tuition through the GROW U initiative. The company pays for eligible employees’ books, college fees, and tuition.

All full-time, part-time, and seasonal employees have access to the fully-funded certificate, degree, and diploma programs.

Employees can also receive up to $5,250 per year in funding for additional educational programs.

16. Home Depot

Home Depot offers technical, doctoral, master’s, and bachelor’s degree programs to its employees. Part-time, full-time, and salaried employees are eligible to receive up to 50% of tuition costs, including registration, books, and educational fees.

Top Companies That Offer Tuition Reimbursement Programs for Their Employees

Click To Tweet

17. Kroger

Kroger offers tuition reimbursement to its part-time and full-time employees. The company’s program allows eligible applicants to receive $3,500 annually or $21,000 in total to cover education costs.

18. Lowe’s

Thanks to its partnership with Guild Education, Lowe’s offers 100% debt-free tuition assistance programs to help employees earn undergraduate degrees and certificates. 

Employees can access more than 165 academic programs and receive up to $2,500 in annual payments. Any full-time or part-time employee is eligible for the program.

19. McDonald’s

McDonald’s offers two tuition assistance programs for full-time and part-time staff. Full-time staff and restaurant managers are eligible for $3,000 a year in tuition assistance per year if they meet the following requirements:

• Participation in the Archways to Opportunity program;
• 30 hours of work per week;
• Good standing.

Part-time employees and restaurant crew are eligible for $2,500 in tuition reimbursement per year if their operators participate in the Archways to Opportunity program and work 15 hours per week for at least 90 days upon completion of their college education.

20. Microsoft

Microsoft employees participating in business-related coursework are eligible for up to $10,000 per year in tuition assistance. The company provides education with regionally accredited educational institutions.

21. Papa John’s

Eligible employees working at Papa John’s can get 100% free tuition for graduate and undergraduate online degree programs. The company has launched the Dough and Degrees initiative, which helps corporate managers tap into career-related educational programs.

Conclusion

If you are an employee at one of these companies, consider taking advantage of the benefits of tuition reimbursement programs. If you work for a different company, ask about education benefits. These are not the only employers that offer them!

If you’re looking for a job and you’re not happy with your credentials, consider applying to companies that offer tuition reimbursement. You can earn money and lay down the basis for professional advancement at the same time!

The post 20+ Companies with Excellent Tuition Reimbursement Programs appeared first on FinMasters.

You can take many financial college courses for free online. Major universities such as Harvard and MIT allow you to “audit” their classes, meaning take them for free. You can also take free financial courses from sites that offer free courses in addition to their paid ones.

Why Take Financial Courses?

Online courses can open up a world of knowledge. You can learn about personal finance, investing, how to get out of debt add even subjects like history, computer coding, and starting a business. You won’t get college credit for the courses, but in many cases, you can pay for a certificate to show you completed the class with an 80% or better score. 

Even without a certificate, you can add the courses to your resume to show you updated your skills. But most importantly, you can learn new subjects and improve yourself. That can improve your position in the job market, but it can also help you gain important life skills.

For example, you can learn how to budget, negotiate, and deal with debt collectors. These important skills can help you improve your life, increase your prosperity, and add to your well-being.

Let’s look at some of the free education opportunities you can use.

Sites That Offer Free Financial Courses

Here are the best sites that offer high-quality financial courses for free.

1. Khan Academy

Khan Academy is a non-profit site that offers an in-depth education on hundreds of topics. It includes written and video lessons as well as practice exercises. Sal Khan started the academy to help learners and teachers with online tools and assignments. 

How to Access

Sign up for a free account. You can then browse courses and save the ones you want. You will see many courses for school-age students, but you can also find classes for adult learners.

What Courses Do They Offer?

You’ll find a wide range of subjects, including the arts, science, language–and of course, money. Here is a sampling of courses dealing with personal finance:

• Saving and Budgeting
• Interest and Debt
• Investments and Retirement
• Interest and Debt
• Taxes

There are many more courses to choose from. This is a partial list. 

What Skills Can You Learn?

Khan Academy courses can teach you how to set up a monthly budget, how to plan your retirement account investments, how to decide how much life insurance your need, and choosing whether to buy or lease a car.

Do They Offer a Certificate?

You fill out a simple form indicating you have at least 80% mastery of the content. This is listed as an educator’s certificate, but anyone can request it. 

You are the only one who verifies your mastery of the material. There is no test to receive a certificate. A Khan certificate will not have as much value as one earned and paid for through a university. However, a certificate indicates you have made an effort to upgrade your skills. 

You earn badges for how many courses you complete. This shows your overall learning progress.

2. Coursera

Coursera is a for-profit educational company, but it offers hundreds of free online courses. The “free” option can be a good way to get to know what they offer.

This is easily the most popular learning company online. Many of the free courses have more than 100,000 enrollees, and some have more than a million. “Free” does not necessarily mean easy or shallow. Some free courses take weeks to complete. Many are from prominent schools such as Harvard and Yale.

How to Access

The signup page is not visible when you arrive at the site. You have to select a free course and enter your information in the window that opens. From there, you will see the options to take the course for free or purchase it. 

Tip: You can save money by taking the free version of a course to see if you like it. If you decide you enjoy the lessons and want an official certificate, you can purchase the course later. The content is the same either way.

What Courses Do They Offer?

You will find an impressive variety of courses on topics from psychology to science, data management, and history. 

There are also in-depth courses on financial topics. Here are some samples.

• Risk Management in Personal Finance
• Financial Markets
• Financial Planning
• Financial Accounting Fundamentals
• Fundamentals of Machine Learning in Finance

These courses can help you toward a financial career or improve your own knowledge of finance and investing.

What Skills Can You Learn?

Within the courses, you can learn skills such as managing your credit score, creating a budget, setting financial goals, managing investments, and understanding taxes.

Do They Offer Certificates?

Some of the free courses offer certificates, but you usually have to take the paid version of a class to get an official certificate. A free certificate is an indication that you completed a course, an official certificate lets you earn a grade.

3. edX

edX is another site that often charges for courses but offers free online classes as well. Harvard and MIT created it. These are university courses with detailed, challenging subject matter. Though you must pay $50 to $300 for a verified certificate (with graded assignments), you can audit a class for free. The course content is the same whether you take the paid version or the free version. 

How to Access.

Choose the free audit track to take free courses.

What Courses Do They Offer?

Courses cover everything from architecture to literature to medicine, plus numerous financial topics. 

Here are a few of the money-related courses:

• Financial Technology (fintech)
• Finance Essentials
• Blockchain
• Finance
• Financial Accounting

What Skills Can You Learn?

Skills you can acquire include calculating the time value of investments, allocating investment types for retirement, creating a budget for buying a house, and mastering cash flow, among many others.

Do They Offer Certificates?

You must pay to get a certificate, but you can take the course for free if you don’t need a certificate.

You can take free classes directly from universities. Major institutions such as Harvard, Yale, and MIT allow you to audit courses. You won’t get a grade, a certificate, or a degree, but you will have the learning opportunity. There are nearly 1,000 universities and colleges that offer free classes.

Let’s look at three of the best.

4. Harvard

Harvard offers hundreds of free online courses. You take them for free but do not earn college credit. 

How to Access.

Go to the free classes portal. 

What Courses Do They Offer?

You can take courses on hundreds of topics the university covers. Some of the money-related ones are:

• Salary negotiation techniques
• Remote Work Revolution for Everyone
• Entrepreneurship in Emerging Economies

Note: Free courses are not available at all times. Check the site to see which are currently offered. 

What Skills Can You Learn?

You can learn to track your finances, use apps for investing and budgeting, understand economics, and use effective business principles.

Do They Offer a Certificate?

Free courses at Harvard do not offer certificates.

5. Massachusetts Institue of Technology (MIT)

MIT offers a variety of “open source” (free) courses to the public. 

How to Access.

You do not have to register with MIT. You can simply enroll in any free class. 

What Free Courses Do They Offer?

This is a technology school, so you can expect a lot of offerings in that area. However, there are many money-related courses. Here are some examples:

• Real Estate Finance and Investment
• Finance Theory
• FinTech: Shaping the Financial World
• Investments
• Consumer Finance Markets

Note: Some of the courses offer video lectures and free digital textbooks. 

Do they offer a certificate?

You cannot earn a certificate for MIT’s free courses. 

6. Hillsdale College

Hillsdale has a limited number of classes you can take for free.

How to Access.

 Search free classes on the site.

What Courses Do They Offer?

You can study a wide range of topics. Some examples:

• The Principles of Free-Market Economics 
• Congress: How it Worked and Why it Doesn’t
• Mathematics and Logic
• Great Books 101: Ancient to Medieval. 

What Skills Can You Learn?

The courses here are heavy on the humanities and literature, but the Free Market Economics course can teach you how markets and money work.

Do They Offer a Certificate?

Hillstone does not offer certificates for free courses.

Conclusion

Free financial courses will usually not earn you a degree. Some may not even carry a formal certificate. They do offer something just as important: knowledge. Many of the courses described here are taught through major universities and contain very sophisticated coursework. Mastering the information they contain can give you the tools you need to improve your life professionally and personally.

Knowledge is one of the keys to progress, and you don’t always have to pay to get it!

The post 5+ Best Sites for Free Financial Courses in 2024 appeared first on FinMasters.

If you’re in this position, these finance books for young adults will help you get off on the right foot.

Best Finance Books for Young Adults:

1. How to Money – By Kathryn Tuggle and Jean Chatzky
2. I Want More Pizza – By Steve Burkholder
3. Broke Millennial – By Erin Lowry
4. Get a Financial Life – By Beth Kobliner
5. Rich Dad, Poor Dad for Teens – By Robert Kiyosaki
6. Pay Less for College – By Elizabeth Walter and Debra Thro
7. The Infographic Guide to Personal Finance – By Michele Cagan and Elisabeth Lariviere
8. Why Didn’t They Teach Me This in School? – By Cary Siegel
9. How to Adult: Personal Finance for the Real World – By Jake Cousineau
10. The Simple Path to Wealth – By J. L. Collins
11. A Teenager’s Guide to Investing in the Stock Market – By Luke Villermin
12. I Will Teach You to Be Rich – By Ramit Sethi
13. You Are a Badass at Making Money – By Jen Sincero

1. How to Money

By Kathryn Tuggle and Jean Chatzky

How to Money is an invaluable resource for anyone looking to improve their understanding of personal finance. The authors provide actionable advice on multiple personal finance topics, including budgeting, saving, investing, and managing debt.

The content is divided into five sections: Earn It, Manage It, Use It, Get Schooled, and Look to the Future. Readers learn how to make informed decisions about their money through easy-to-read language and real-life examples.

Key takeaways: This book is designed to introduce young adults to personal finance. It provides the foundation they need to build a better financial future and avoid the pitfalls that put so many young people in a financial hole before they even get started.

About the author: Kathryn Tuggle and Jean Chatzky are financial journalists and authors. Tuggle is the managing editor of LearnVest and a contributing writer for Forbes, while Chatzky is the financial editor of NBC’s TODAY show and the author of several books. They are financial literacy advocates and have collaborated on several projects, including the Money School online course and the How to Money book.

2. I Want More Pizza

By Steve Burkholder

I Want More Pizza, by Steve Burkholder, focuses on the crucial basics of money management, such as budgeting, saving, investing, and credit. It also provides a wealth of practical advice on topics like getting a job, applying for scholarships, and making the most of student discounts.

The book is built around the pizza analogy, which helps younger individuals understand the linkages that connect fundamental financial concepts.

The book is short, only around 100 pages, and is designed to be accessible to teens.

Key takeaways: I Want More Pizza is packed with helpful information but written in a direct, easy-to-follow tone. It’s widely used in school personal finance programs and is an excellent resource for teaching teenagers, students, and young adults more about finances. The book is filled with the author’s real-life examples of his money troubles during his younger years, giving readers real-world lessons that they can relate to.

About the author: Steve Burkholder is a CPA with degrees in finance and accounting. He teaches corporate finance and devotes much of his spare time to providing accessible basic financial education to young people.

3. Broke Millennial

By Erin Lowry

Broke Millennial by Erin Lowry is an insightful and practical guide to financial success for young adults. The book is filled with helpful advice and tips on managing finances, from budgeting and saving to investing and debt management.

With simple language and engaging true stories, learning about finances turns into a fun experience quickly.

Key takeaways: Broke Millennial avoids the common trap of approaching personal finance from the perspective of an older author who is already financially stable. It’s a realistic, sympathetic viewpoint that will resonate with people who have made mistakes (like all of us) and need help, not judgment.

About the author: Erin Lowry is an engaging author who writes in an approachable and straightforward style. She draws on her own experiences and provides examples to illustrate her points. She has written several other outstanding finance books, including Broke Millennial Takes On Investing and Broke Millennial Talks Money.

Read key ideas on Blinkist →

4. Get a Financial Life

Personal Finance in Your Twenties and Thirties

By Beth Kobliner

Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner is a comprehensive and easy-to-follow guide to taking control of your finances. Catering primarily to young adults, it covers topics such as setting financial goals, budgeting and saving, investing, understanding taxes, buying a home, insurance, and other critical financial matters for this age.

Kobliner breaks down complex financial concepts into easy-to-understand language, making it an excellent guide for those just starting their journey to financial literacy.

Key takeaways: Get a Financial Life was first published in 1996 and served as a financial bible for young people struggling to get started during the 2001 and 2008-2009 recessions. Despite its age, this New York Times bestseller is as relevant as ever. It is straightforward and accessible and is an ideal pick if you want a general introduction to personal finance.

About the author: Beth Kobliner is a financial journalist, personal finance commentator, and best-selling author. Her primary mission is to help people improve their financial lives by providing valuable insights, tips, and tricks. Her book Get a Financial Life: Personal Finance in Your Twenties and Thirties is a New York Times bestseller, alongside her other book, Make Your Kid a Money Genius.

5. Rich Dad, Poor Dad for Teens

By Robert Kiyosaki

Rich Dad Poor Dad has become a personal finance classic since its publication in 1997. Not everyone agrees with its approach – our review digs deeper into those issues – but it remains one of the most popular personal finance books in the country.

Rich Dad Poor Dad for Teens is an adaptation of a well-known bestseller aimed at younger audiences. Reviews of the book are mixed – some readers found it short, and a bit repetitive – but they are still generally favorable…

Key takeaways: Rich Dad Poor Dad for Teens takes the lessons from Rich Dad Poor Dad and reframes them for a younger audience. Not everyone finds those lessons useful, but if you liked Rich Dad, Poor Dad and you’re looking for a personal finance book for your kids, it’s worth a try!

About the author: Robert Kiyosaki is a businessman, entrepreneur, and author. He’s the founder of Rich Global LLC and the Rich Dad Company. In addition to being a successful businessman, he provides personal finance advice and educates others on managing their finances.

6. Pay Less for College

By Elizabeth Walter and Debra Thro

Paying for college is an almost ubiquitous concern among college-bound young adults. Pay Less for College is a valuable guide that helps students take care of their finances and teaches them how to afford their degree without plunging into a lifetime’s worth of debt.

After seeing how confusing and misleading college financial aid information is, the authors created a guide that will allow young adults to plan their college funds and make the most of the available financial aid. The result is a simple but comprehensive guide to making college affordable.

Key takeaways: Most of the books on this list cover general personal finance topics. Pay Less for College is much more specific and aims at a very specific audience: college students, soon-to-be college students, and their families. It helps students navigate financial aid and take control of various college costs. It also teaches them how to get more free money through scholarships and grants and save tens of thousands of dollars throughout their higher education.

About the author: Debra Thro is an ASCA Certified College Admissions Specialist and a PACAC member. She collaborated with Elizabeth Walter in writing Pay Less for College.

7. The Infographic Guide to Personal Finance

By Michele Cagan and Elisabeth Lariviere

Some people are visual thinkers and find it easier to absorb information when it’s laid out in a graphic form. If that sounds like you, The Infographic Guide to Personal Finance is the perfect personal finance book for you. It contains informative lessons about finances delivered through captivating graphics.

The visually appealing infographics in this book cover a range of personal finance topics, from spending, budgeting, and saving to credit, debt, housing, and investing. If there’s a young person in your life who’s having trouble with traditional finance books – or if you are – this one is worth a try.

Key takeaways: This is not a simple picture book. It takes complex concepts about money and presents them in a visually appealing form that many people will find easier to understand than written explanations.

About the author: Michele Cagan is a CPA, financial mentor, and author with more than 20 years of experience in the field of finance. She has written multiple books and articles about personal finance and investing. She collaborated with Elisabeth Lariviere in writing Pay Less for College.

8. Why Didn’t They Teach Me This in School?

By Cary Siegel

Why Didn’t They Teach Me This in School? 99 Personal Money Management Principles to Live By was written by a business executive who wanted to lay out lessons that would teach his five kids more about finance as they entered adulthood. The book quickly received worldwide fame.

Some readers found some of the advice – especially the suggestion that college students avoid credit cards – dated, but the basic principles have generally been well received.

Key takeaways: Why Didn’t They Teach Me This in School? covers budgeting, spending, investing, insurance, mortgage, credit cards, and many more topics. It’s packed with valuable tips and tricks that most people don’t learn in school.

About the author: Cary Siegel holds an MBA from the University of Chicago and was a business executive at many marketing and sales organizations. He published Why Didn’t They Teach Me This in School? book in 2017, while Why Didn’t They Teach Me This in School, Too? hit the shelves in 2018.

9. How to Adult: Personal Finance for the Real World

By Jake Cousineau

How to Adult: Personal Finance for the Real World has been called “an essential resource for a high school graduate, college student, or any other young adult who needs to prepare for the financial realities of adulthood”. It addresses a range of personal finance topics, from basic budgeting and saving to more complex concepts like investing, retirement accounts, taxes, and insurance.

By equipping young adults with money management fundamentals, this book prepares its readers for the financial realities of adulthood.

Key takeaways: How to Adult: Personal Finance for the Real World is longer and more complex than some of the books on this list. It might not be the right choice for younger readers or reluctant readers, but it is a book that you can keep on your shelf – and keep consulting – throughout the adulting process.

About the author: Jake Cousineau is an author and educator that shares his knowledge about finance to teach others to manage their money more successfully. He taught personal finance classes in high schools for years, gaining a strong appreciation for the financial education needs of young Americans.

With his book How to Adult: Personal Finance for the Real World, Jake Cousineau hopes to reach a wider audience of young adults and provide them with everything they need to know about personal finances in the real world.

10. The Simple Path to Wealth

By J. L. Collins

The Simple Path to Wealth is an investing book for people who know nothing about investing. For young people, investment often seems a remote activity for people who already have money, and that attitude often keeps people from investing early and giving their assets the largest possible time to appreciate.

This book covers everything a young person needs to understand what investing is about and get started early, along with other personal finance knowledge.

Key takeaways: The investment world can be harsh, especially for young adults and beginners who don’t know much about this topic. That’s where The Simple Path to Wealth comes in handy, as it provides readers with a simple map and tools necessary to forge financial stability and build wealth with confidence.

If you’re looking for a general personal finance book, this might not be your top choice, as it is primarily focused on investing. If you’re looking to get started with investments, though, it’s a prime pick.

About the author: J. L. Collins is currently a financial blogger and book author. However, he was also an account executive, consultant, investment officer, entrepreneur, speaker, radio talk show host, and magazine publisher. With so much knowledge and experiences to share, his book The Simple Path to Wealth is an excellent choice.

11. A Teenager’s Guide to Investing in the Stock Market

By Luke Villermin

Luke Villermin’s A Teenager’s Guide to Investing in the Stock Market is focused on the advantages of starting investing early. Just because most people wait until they’re in their 30s to start investing doesn’t mean that’s the best thing to do.

By presenting the benefits of investing as early as their teenage years, Villermin hopes to motivate younger generations to start working on their financial stability today.

Key takeaways: The book’s primary goal is to inspire teenagers and young adults to start saving and investing today. The readers can do so thanks to a step-by-step guide to opening an online account, purchasing stock, and putting money to work. The book also covers the stock market’s basics and how to choose the best investments.

This is a focused book with a single purpose. If that purpose lines up with your objectives, it’s a good choice!

About the author: Luke Villermin is a successful author interested in sharing his knowledge about finances and investing. He is the author of several well-received books. Besides A Teenager’s Guide to Investing in the Stock Market, Luke Villermin wrote On Your Mark, Get Set, Spending Wisely, INVEST: A Kid’s Guide to Saving Money, and several others.

12. I Will Teach You to Be Rich

By Ramit Sethi

Another outstanding read is I Will Teach You to Be Rich by Ramit Sethi. It’s a New York Times Bestseller published in 2009 that tackles the process of becoming rich. Today’s version is completely updated with over 80 pages of new material.

I Will Teach You to Be Rich is written in a light, irreverent style that one reviewer describes as “part frat boy and part Silicon Valley geek, with a little bit of San Francisco hipster thrown in”. Don’t let the style fool you: the advice is entirely serious.

Key takeaways: I Will Teach You to Be Rich makes some pretty ambitious claims, notably of a “no-BS 6-week program”, a pretty quick timeline when getting rich is the goal! With almost 13,000 overwhelmingly positive reviews, though, this book has clearly made an impression on a large number of readers!

About the author: Ramit Sethi is a bestselling author who has been featured by ABC News, CNN, and the Wall Street Journal. He’s dedicated to helping his followers manage personal finances and work on their financial stability. Instead of simply guiding them to becoming financially independent, Ramit Sethi teaches readers how to become rich.

Read key ideas on Blinkist →

13. You Are a Badass at Making Money

By Jen Sincero

Last but certainly not least, we complete this reading list with You Are a Badass at Making Money by Jen Sincero. You Are a Badass is one of the most talked-about books in the personal finance world.

Most personal finance books focus on the practical steps we can take to put our finances in order. You Are a Badass at Making Money takes a different approach, focusing on the mindsets and mental blocks that prevent so many people from achieving financial progress.

Key takeaways: The connection between mental attitudes and money is well-documented, and that connection is increasingly seen as a key to breaking out of self-destructive habits and replacing them with constructive ones. You Are a Badass at Making Money takes an easygoing, positive, guilt-free approach to help you unlock your financial potential.

About the author: Jen Sincero is a #1 New York Times bestselling author and speaker who has helped thousands of people transform their lives. With You Are a Badass series of books and Badass Coaching Programs, Jen Sincero motivates people of all ages to improve their lives in different aspects, especially the financial one.

Read key ideas on Blinkist →

The post 13 Best Finance Books for Young Adults appeared first on FinMasters.

According to a report by Self.Inc, the average cost of college has risen 4.94% nationally since 2015^[1]. That figure amounts to $1,344 more to study each year per student. The growth in education costs easily outpaced the U.S. inflation rate (now standing at 1.7% per U.S. government figures^[2].

You probably know what tuition costs. You may be less aware of the rising “hidden costs” of attending college. This term covers a range of costs other than tuition. You expect to pay for food and lodging, but they may cost more than you planned to spend. Other expenses may come as a rude shock.

The Impact of Hidden Costs

Hidden costs affect student and family budgets. That impact is multiplied when the costs are unexpected.

• About 80% of college students say they have encountered an unexpected indirect college expense at least one time^[3].
• 51% of college students surveyed paid more for indirect expenses than they expected, according to a 2020 study by uAspire, a college non-profit focused on college affordability^[4].
• 53% “changed their food shopping or eating habits. 42% were concerned they wouldn’t be able to stay enrolled as a result,” according to the same report.
• uAspire surveyed over 800 colleges and universities and found that 39% “provided no estimates about non-tuition costs on their websites.” Laura Kean, a chief policy offer at uAspire and a co-author of the report, stated that “almost half of schools really didn’t give students the information they needed.”

People familiar with the college experience are more likely to anticipate and budget for costs other than tuition. These costs often fall hardest on families sending a child off to college for the first time. These are also often the families who are least able to cover unexpected costs.

Getting a Grip on Hidden College Costs

Hidden charges can provide a severe case of sticker shock to beleaguered students and parents.

According to Mark Kantrowitz, a former publisher at SavingForCollege.com and author of the book, How to Appeal for More Financial Aid, most families do not plan for hidden college costs. “That’s because they’re not aware of them. Hidden college costs can increase the cost of a college education by $10,000 to $20,000 (approximately $300-to-$500 per month).”

College experts say that academic institutions don’t make it easy to find hidden costs. The uAspire report notes that colleges have 58 terms for describing indirect college expenses. Parents and students can also do a better job of rooting out hidden college costs from arcane tuition bills.

“I’m not sure if the costs are hidden, but rather most college families don’t ask or understand the questions they need to ask,” said Fred Amrein, co-founder of PayforED, a collegiate consulting firm located in Newtown Square, PA. “The emotional part of this decision often distorts the reality of cost. The colleges have gotten very good at making things very a la carte, such as the type of dorms, meal plans, and fees by major. They only give one year of financial information, so it is difficult to see the total cost and debt.”

“That means students and parents may be unable to see the financial consequence of their decisions,” Amrein said.

Knowledge is Power

The best path forward is exactly what colleges offer – education.

“The price many colleges list on their website or in their financial aid documents is often under-estimated,” said Laurie Kopp Weingarten, president of New Jersey-based One-Stop College Counseling. “Unfortunately every college seems to have their own method of calculating total costs which makes it difficult for families to compare their options when selecting where their student will enroll.”

What are the Hidden Costs?

Here are some of the most important hidden costs that you can expect to encounter. If you’re aware of the costs you can prepare for them and take action to reduce them. You could save thousands of dollars in the process.

Student Loan Interest

“The biggest “hidden” costs are the thousands of dollars of interest that people are paying on their student loans,” said Jeffrey Scholnick, legal counsel at Silverman, Thompson in Baltimore, Md. “Many student loans will be accruing interest while the borrower is in college, but people don’t realize that as their payments don’t start until six months after they graduate when their debt has increased significantly.”

Scholnick, who specializes in helping individuals with onerous student loan debt, said that students and their parents need a loan repayment strategy before they start college. “Otherwise, they are shocked to see that their young graduates, earning entry-level salaries, are suddenly faced with loans equaling the amount of a mortgage,” he added.

Health Insurance

Many families are surprised to find out that they will need to pay for health insurance or some sort of additional healthcare fee”, Weingarten said.

Extra Dining Costs

Meals are a basic expense if you’re going away to college. You may not understand the full cost and the college may be in no hurry to explain it.

“Many colleges don’t cover all meals, or students decide not to purchase an unlimited meal plan, or their course schedule doesn’t allow them time for lunch/dinner in the dining hall,” Weingarten said. “Then, they also must purchase food.”

Students also often complain that they dislike the dining hall menu choices, so they “need” to purchase food/beverages. “It all adds up,” Weingarten added. “And don’t forget the socializing that goes on at restaurants and bars – that’s definitely not included in the cost of attendance.”

Textbooks

Buying textbooks for the semester up front may take a huge bite out of their hard-earned budget dollars. Many students don’t realize how much textbooks cost until it’s time to buy them. According to the college board, the average college student spent between $1,200 and $1,400 on textbooks during the 2018-2019 school year, a substantial bite that many families may not anticipate.

Dorm Furnishings

You expect to spend for sheets and blankets and some basic decorations. There may be other expenses as well. “Consider, for example, a common room in a suite that is completely unfurnished,” Weingarten noted. “When my son arrived at Princeton, we had to purchase a couch and chairs. Some of my students had the same situation at Yale. But at the University of Pennsylvania, where my daughter attended, the common rooms are furnished. It simply depends on the school policy.”

Social Costs

Social life is part of college life, and it often involves costs. Fraternity/sorority costs, club costs: fundraisers, dues, and end-of-semester events can all put a load on the budget.

“Hidden costs also include purchasing tickets to support your friends’ events,” Weingarten added. Some of these costs may be avoidable but it’s not reasonable to expect a college student to completely overlook the social side of life.

Loss of Merit Aid

“If a student loses their merit scholarship by not meeting the required grade-point average, it can turn into a true financial hardship for the family,” Weingarten said.

This happens more often than many parents expect. Students who are used to excelling in high school may not develop rigorous study habits. They can be overwhelmed by the workload and academic standards of a competitive university. When you’re used to being “the smart kid” it can be a shock to discover that now all the kids are smart. If you don’t adjust in time the cost impact could be severe.

Fight Back!

Some hidden costs are hard to cut, like food and accommodation. Parents and students can still trim many of those costs. Learning to live in a cost-conscious style can even be part of a student’s education. Experience with frugal living can be a big advantage after graduation!

“Unfortunately though, many hidden costs are hard to avoid,” Weingarten said. “Also, sometimes there are grants or reimbursements for costs that students don’t think to ask about. The more the student is aware of benefits and perks offered by the college, the better the chance that some expenses can be covered.”

College experts say you can cut your spending on hidden costs. These items are at the top of that list.

Use Your Meal Plan

“If you are required to purchase a meal plan, then use it, even if the food isn’t your favorite,” Weingarten said. “Try to take advantage of the free things offered to college students.” With meal plans as low as $800 per semester (i.e., four months or so), college students can save hundreds, if not thousands, of dollars by stocking to the meal plan and not eating out.

Many colleges offer multiple meal plans. You may be able to save by choosing a plan that fits your eating style. Don’t pay for three full meals a day if you aren’t going to eat them!

Save on Textbooks

By purchasing used textbooks on eBay or Amazon or even renting them on textbook sales platforms like Chegg, college students can save up to 50% off the cost of collegiate textbooks. Look into second-hand books sold at your university by students who have already taken the course. Some textbooks may be available in e-book format, which can reduce both cost and the weight of a school bag.

Remember that students can sell their textbooks when the semester is over and recoup some of their textbook expenditures.

Off Campus Local Costs

Make sure to ask for a student discount when purchasing items off-campus. “Many retailers offer discounts if you present a student I.D.,” Weingarten noted. Student I.D.’s can save the average college student about 40% for movies and entertainment, 40% off travel and hotels, and about 20% off for digital hardware like laptop computers, among other savings.

Curb Parking Tickets

If you have a vehicle on campus, avoid parking in areas where you can get a ticket. “While one or two might not be that much of a problem, if you add them up over the months and years that you’re at college, it can turn out to be quite a hefty cost,” said George Birrell, founder of TaxHub, a New York City-based tax planning firm. “Learn your lesson quickly and don’t park in high-risk ticker areas. Uber is a good option against campus parking issues, too.”

Parking tickets can start low, depending on where the college is located. An initial ticket can $10 in rural areas and $40 in urban areas. If you ignore the ticket, the cost may go up. That could mean hundreds of dollars in savings by avoiding parking tickets.

Assess General Tuition Costs

Before choosing a college, calculate an estimate of the hidden college costs, so you can budget for them. “Review all of the fees listed on the college’s website,” Kantrowitz said. “Choose a cheaper college, taking into account the hidden costs. Identify the hidden college costs you can avoid or reduce. Then, plan a path from enrollment to graduation, so you can graduate on time.”

By choosing a less expensive college, a student can save over $10,000 annually – and up. Getting a grip on college fees can save a family and student hundreds of dollars annually.

Consider Studying Close to Home

Living away from home may be closer to the college experience you’re looking for, but it can push the costs of college up. If you live near a college or community college, starting out in a local school and living at home can cut your costs by a substantial margin. You can always transfer to the school you want if you’re local school doesn’t offer the degree you want or you feel that you’d gain a significant advantage from graduating from a better-known school.

Studying at a local college may push your transportation costs up. You’ll need to consider that when you compare costs, but the savings on accommodation and food will be substantial.

The Takeaway on Hidden College Costs

Why do colleges get away with hiding costs, or with being less than open about non-tuition expenses? Because they can.

“I have no idea why colleges can’t more accurately estimate the costs and why they can’t curtail some of them,” Weingarten said. “For example, some colleges offer free laundry and/or free printing. Others charge for one or the other while many allocate a specific dollar amount of free services.”

The bottom line is simple and straightforward.

“Do as much research as you can before committing to a college,” Weingarten said. “Try to identify what the unexpected costs and estimate how much they can cost each year. As a family, discuss what expenses are reasonable and what the student should prioritize.”

The post The Hidden Costs of College (and How to Cut Them) appeared first on FinMasters.

You can have a good and fulfilling life by taking either path. But for right now, with the choice of trade school or college, you need to decide which one is right for you? To make an informed decision, you need to fully understand what each option entails. In order to do that, we will go over the relationship between education and earnings, the differences between trade schools and colleges, and, finally, the pros and cons of each.

A Strong Link Between Education and Earnings

Education has a tremendous impact on your career earning potential. And while today many Americans are starting to doubt the worth of going to college, the studies of lifetime earnings by education level consistently show that college graduates earn more money than associate degree holders or college graduates.

Of course, average lifetime earnings aren’t consistent across all programs. Some college degree holders earn more than others. Some trade school or associate degree graduates earn as much as college graduates.

You also have to consider costs. Getting a college degree takes four years, sometimes more, and leaves many graduates deeply in debt. If you want to reduce your debt load and get into the workforce faster, a trade program might be your best choice.

Three Kinds of Schools

You’ll be choosing among three different categories of schools. Let’s look at the differences.

1. Traditional colleges typically offer a range of four-year degrees. They provide both general education and a specialized major and present significant academic challenges. They may be public, non-profit private, or for-profit private.
2. Community colleges typically offer two-year programs. Some of these prepare students for a transfer to a four-year program. Others are trade-focused. Most community colleges are public, and they usually offer a range of trade-focused associate degrees. They usually require some general education courses.
3. Trade schools focus entirely on trade-specific certifications. Programs may range from a few months to two years. Most have no general education requirements. Trade schools may be public or private, but many are private for-profit institutions.

Each of these general types has advantages and disadvantages. None is inherently better or worse than the others. Your job is to choose the one that best suits your needs and goals.

Let’s look at some of the pros and cons of each option.

Trade School Pros and Cons

Trade School or College? What's the Difference? Pros and Cons of Each

Click To Tweet

Community College Pros and Cons

College Pros and Cons

Key Questions to Ask Yourself When Deciding Between Trade School and College

If you’re considering these options you’ll need to look at all of the factors discussed above. You’ll also have to consider the most important factor of all: your own needs and desires. Start by asking yourself these questions.

• Are you prepared to commit to a career? If you are ready and you believe a trade career is appropriate for you, a trade school or a community college trade program might be your best option.
• Do the career options offered in trade programs really appeal to you? The trades offer many well paid career options, but they aren’t right for everyone. Think seriously before making a commitment.
• Are you prepared to face the academic load of a traditional college? The academic life also isn’t right for everyone. If you struggle with abstract or theoretical academic work a trade program might be ideal for you.
• How much debt are you prepared to take on? College is expensive and often involves high debt levels. The investment pays off but it sometimes takes time and debt levels can surge due to interest. Are you ready for that commitment?
• What’s your priority: reliable work or personal growth? Many people attend college not only to boost career prospects, but to expand their knowledge and horizons. Is that what you’re after, or is a paying job more important?

There are no right or wrong answers to these questions. They are meant to help you clarify your objectives and make the choice that will best suit you.

The post Trade School vs. College: How to Choose the Right Path for You appeared first on FinMasters.

To answer that question, we need to look at the pros and cons of investing years of your life and a substantial amount of money in getting a second degree.

Is a Master’s Degree Worth It? The Pros

When talking about postgraduate degrees, the conversation is never so black and white that we can just break it down into a general list of pros and cons. Instead, your expected return can vary depending on what you choose to study.

For some career paths, a master’s degree is essential. For others, the cons outweigh the pros, as a master’s degree represents a costly investment with little probable return.

Let’s explore whether a master’s degree is worth the investment, particularly if you’re pursuing a career where it can offer significant benefits.

Higher Expected Salaries and Lifetime Earnings

According to the U.S. Bureau of Labor Statistics, the median income of master’s degree holders was around $81,848 in 2021^[3]. Earning a master’s degree will likely net you a better paycheck than someone with just a bachelor’s degree, whose median income was around $69,368 in 2021. Yet, you will probably make less money than someone who has a Ph.D. or a professional degree.

To put things into context, the average salary in the US is $76,554, and the median annual salary is $56,473 across all occupations and states.

The impact of a master’s degree on your professional prospects depends on what you choose to study. So, let’s take a look at some career choices that benefit from a postgraduate education^[4]:

The U.S. Bureau of Labor Statistics estimates that almost half of all jobs that pay more than $94,000 annually demand a master’s degree^[5].

The fields that benefit the most from postgraduate studies are math and science, engineering, education, information science, and healthcare.

The Bureau of Labor Statistics predicts that the number of jobs requiring a postgraduate degree will increase by 16.7% by 2026.

A master’s degree can boost your earning potential over your entire life. When considering if a master’s degree is worth it, you want to ask yourself how many more years you expect to stay working. The longer you expect to stay in the workforce, the more beneficial a master’s can be for you. Studies show that people with a master’s degree can expect their earnings to increase steadily even when they’re past 50 years old, but people with only a bachelor’s degree tend to see their earnings plateau when they’re in their mid-forties.

Learn more: Navigating college financing can be less daunting; our recent post outlines avenues to help mitigate costs and avoid loans.

Higher Chance of Getting Employed

In terms of determining whether a master’s degree is worth it for job prospects, it’s worth noting that the unemployment rate among individuals with a master’s degree is around 4.1%, compared to a 5.5% unemployment rate for those with a bachelor’s degree. So, having a master’s degree does offer a slightly better chance of finding a job.

This lower degree of unemployment bodes well for those with a master’s degree. For one thing, it means that during hard economic times, they will be more likely to hold on to their jobs. This lower unemployment rate highlights how gaining a master’s degree gives you some leverage and helps you stand out from the rest of the pack when applying for a job.

You won’t even be considered for some positions if you don’t have a master’s degree.

Learn more: Looking to earn a bit extra while balancing college classes? Our latest piece offers a rundown of feasible side hustles for students.

Expanded Network

Last but not least, one of the factors that make a master’s degree worth considering is the opportunity to network with others in your chosen field, thereby improving your career prospects. The connections you make during your postgraduate studies with your professors and your peers can help open doors for you or even generate future business partnerships.

Is a Master’s Degree Worth It? The Cons

Deciding whether a master’s degree is worth it involves weighing the clear benefits of the right postgraduate program against the drawbacks, especially before committing two or more years of your life to advanced academic studies.

The Cost

The cost of a master’s degree differs from program to program and from college to college. The tuition at a private, non-profit college will be more costly than the tuition at a public school.

Here are some numbers to bear in mind^[6]:

• If you pursue a master’s degree and are doing a two-year program, you can expect, on average, to pay somewhere between $44,000 and $57,000.
• You can expect to pay around $31,046 in total every year of your master’s program.
• An expensive master’s program might cost you around $60,000 annually or $120,000 for a two-year program.

These are only tuition costs. You also need to consider rent, food, bills, and other living expenses. If your education will be a full-time occupation, you won’t be receiving any income for two to three years.

Master’s graduates tend to hold more debt than bachelor’s degree holders. The average master’s holder will owe around $46,798 in student loan debt, which is around 37% more than the debt held by your average bachelor’s degree holder. This is also another important factor to think about when wondering if a master’s degree is worth it.

Learn more: If you’re questioning the true merit of a college degree in today’s world, our analysis offers a balanced perspective.

What Factors Will Affect the Cost of a Master’s Degree?

Your choice of program and college will have a large influence on the tuition you will have to pay. There are several other factors to consider when asking yourself if a master’s degree is worth the investment:

• Residency is a big factor. At many state universities, out-of-state students pay as much as twice the tuition cost of students who qualify as in-state.
• The course load you take matters. If your school charges you a flat fee for your credits, then whether you’re a part-time or a full-time student will affect your final cost.
• The amount of time it takes you to finish your degree can have a huge impact on your cost and on the time spent before you begin earning.
• You will run into other costs. If you want to get a master’s degree in a subject related to medicine or science, you will pay lab costs in addition to your tuition. A master’s degree in education might force you to pay more if you want to take a special licensing exam to be state-qualified and ready for the job market.
• You need to consider the interest rate costs if you decide to take out a student loan. Those interest rates might differ depending on the type of loan, but no loan is free, and financing costs matter.

The costs we’ve talked about so far have been monetary. You also need to consider the time you need to invest to receive a master’s degree.

Learn more: Preparing your college budget? Our recent article highlights the often overlooked expenses and offers tips to reduce them.

Years of Study

Although a typical master’s program lasts for two years, this period can be stretched out to three years, especially if you can’t afford to be a full-time student. If you have a job and a family to feed, doing your master’s part-time may be the only feasible option.

Thinking about leveling up with a #Master's-Degree? Get clarity on its real-world impact in our recent article.

Click To Tweet

Some programs limit the number of years available to you. For example, a program might state that you need to earn all your required credits within a certain time frame, or else you flunk the program.

Other programs might offer you an accelerated track, allowing you to cram all your credits into only two semesters, finishing your degree in one year rather than two.

You need to consider the opportunity cost of taking on a master’s degree. This means that the time spent doing your master’s would preclude you from doing other things. For instance, you could be working extra hours rather than studying, or you could be spending more time with friends and family, investing in your social life. The bottom line is that you need to be willing to sacrifice these other options for your master’s.

Other Miscellaneous Drawbacks

There are also going to be some hidden drawbacks.

For instance, considering whether a master’s degree is worth it for your career is important because having one could make you overqualified for many entry-level positions. So, if you see an opening at a company you would love to join, you need to be careful. The employer might assume that you are only applying to use the entry-level job as a stepping-stone or as a temporary source of income till you find something better.

As a result, the employer might suspect that you are a short-term hire, discouraging them from investing in you.

Factors That Can Affect Your Experience

Is a master’s degree worth it or not? It depends on what you choose to study as well as on your particular circumstances.

Bearing that in mind, there are some other factors that can impact your experience.

Which School You Go To

Where you study matters. Private schools cost more than state schools, but the school you attend also influences your post-degree earnings. If you get your master’s from an accredited college, you should expect a higher starting salary than if you were to go to a non-accredited school.

Employers care whether your degree comes from an accredited school, but your chances of getting financial aid also skyrocket when you pursue a degree from an accredited institution.

Even when you compare two accredited universities, you will usually find that one of them will get ahead of the other in terms of future prospects. The Tuck School at Dartmouth boasts on its website that its MBA class of 2022 enjoyed an average starting salary of $175,000. Conversely, the Claremont Graduate University Drucker School of Management was proud to announce that its MBA class of the same year earned an average starting annual salary of $75,000, less than half as much.

How Eligible Are You for Financial Aid?

One of the biggest negatives of a master’s degree is the t price tag that comes along with it. You can reduce this total cost if you qualify for financial aid.

Financial aid can come in the form of scholarships, grants, and fellowships. To see what you qualify for, you might want to start with the Free Application for Federal Student Aid, also known as FAFSA.

Some states and cities may help you pay off your student loans. These states and cities provide something called a “reverse scholarship,” which is available to those who live there. So, if you are willing to move after your degree, you might want to consider these places.

Some employers offer tuition assistance, so you might want to explore that avenue if you already have a job. If your employer helps you pay for your degree, they will usually have conditions, such as studying a specific topic or staying at the company for a specific number of years after receiving your degree.

Putting It All Together…

Is a master’s degree worth it? There is no one-size-fits-all answer. Instead, you need to decide what makes sense for you. To help you down that path, here are some questions you might want to ask yourself:

• What are my short and long-term professional goals?
• Will a master’s degree get me one step closer to these goals?
• What subject am I planning to study, and what is the expected ROI of that particular field?
• Can I fit a master’s program into my life? Can I devote the necessary time to complete my degree?
• Can I afford to pay for a master’s program?
• Are there any financial aid options available to me? If not, am I okay with taking out student loans?
• Are there alternatives to a master’s degree that can also help me achieve my professional goals?

If you feel that the answers to the above questions lead you to the conclusion that a master’s isn’t your best option, here are some alternatives for you to consider:

• Professional certificates.
• Specialized courses.
• Online master’s degree.
• Apprenticeship programs.
• Professional mentorship.

The bottom line to the question, “is a master’s degree worth it?” is that there are numerous ways for you to advance your career. A master’s degree may or may not be your best option. It all depends on your unique circumstances and needs!

The post Is a Master’s Degree Worth It? appeared first on FinMasters.

Some support their claim by pointing to billionaire business owners who never finished college. Others have stories about a highly educated person working a minimum wage job. In both cases, the anecdotal evidence doesn’t prove much. To get to the truth, it’s always best to rely on the data. Here’s what it has to say about the value of college in 2021.

Why People Claim College Is Worthless

There are many reasons people become cynical about the value of college, but they tend to use the same handful of arguments to denigrate it. Let’s take a look at some of the most common ones and see whether the facts support them.

1. “Your Major Is Probably Worthless“

There’s a common stereotype that college students often decide to major in something financially impractical (like theater or the social sciences) and then complain when they can’t get a job upon graduation. If everyone were getting worthless degrees, that might imply that college is worthless as a whole, but the facts don’t support that story.

The vast majority of students, especially those from lower-income households at less selective universities, choose career-oriented majors. 62.7% of them study practical fields like engineering, science, business, and medicine.

Only 11.3% pursue the social sciences and performing arts.^[2] At the wealthier, more selective universities (which is a small subset of colleges), that number only goes up to 25%. It’s probably because the average student at these schools worries less about learning a trade. They’re more likely to come from connected, wealthy families.

2. “College Doesn’t Help You Get A Job“

58% of American undergraduate students choose to go to college because they believe it will advance their career prospects.^[3] Most don’t care nearly as much about the social aspect or even necessarily increasing their knowledge. They just want to get a good job and a stable income upon graduation.

There’s nothing wrong with that mindset, but it inevitably leads some graduates to conclude that college is worthless. There will always be people who complete four years of tuition payments, take on thousands of dollars of debt, and find that they have no job prospects. It’s not surprising that they feel their time, money, and efforts were wasted, but all they’ve proven is that a degree doesn’t guarantee employment.

Read More: Are you struggling to get rid of your student loans? Take a look at our favorite strategies for paying them off: 13 Tips for How to Pay Off Your Student Loan Debt.

On average, college still dramatically increases your chances of getting a job. In 2019, employment for people between the ages of 25 and 34 who completed their bachelor’s degree was 87%.^[4] It was only 74% for those who graduated high school but didn’t have any higher education.

Interestingly, employment was still noticeably higher among those who only had some college education (and never got a degree). 80% had jobs in 2019, a full six percent more than those without any college experience.

3. “College Doesn’t Help You Earn More“

Another of the most common anecdotes people use to demonstrate that college is worthless is that they, or someone they know, got a college degree and ended up in a low-paying, “unskilled” position anyway. Maybe they got a degree in Biology and ended up letting it languish while they work as a barista. 

Alternatively, they might say that people like Mark Zuckerberg, Bill Gates, and Steve Jobs didn’t need to go to college to become billionaires. You can grow a business and become wealthy without wasting your time and money on a lousy degree.

Read More: Interested in starting your own business one day? Take a look at our favorite strategies to pull it off while working full-time: How to Start A Business While Working Full-time.

If people who go through the hassle of college make the same amount of money as those who don’t, then what’s the point? You might as well skip the expensive four-year vacation and get right to work.

Once again, the numbers don’t support this argument. College graduates earn about one million dollars more over their lifetimes than people who only graduated from high-school, even after accounting for their extra years in the workforce^[5].

That’s a life-changing amount of money, and the trend is visible in today’s market. In 2019, American workers between the ages of 22 and 27 earned $14,000 more per year with a college degree. Even if that gap were to remain the same over a 40-year career, that would be a difference of $560,000.

4. “The Cost of College Outweighs the Benefits“

Of all the common reasons people argue against going to college, this one has the most merit: “College still has some value, but your time and money would be better spent elsewhere.”

It isn’t easy to prove one way or another, given the wide range of possible costs and benefits to obtaining a college degree. However, once again, the average outcome of attending college is superior to entering the workforce right out of high school.

The average total cost of tuition at a 4-year public college is $174,884. Once you add in the lost income and the interest on student loans, the total average cost of a bachelor’s degree is a whopping $400,793^[7].

That’s an impressive sum, but as we said before, college graduates earn an average of a million dollars more during their careers than non-graduates. If you invest even a portion of that extra money into income-producing assets (the opposite of debt), the equation favors a college degree even more heavily.

Read More: If you’re smart enough with your money to have some savings each month, there’s a good chance you should be putting part of it toward long-term investments. Take a look at our guide to getting started: Investing 101: Investing For Beginners.

College Is Still Economically Valuable

The numbers are in, and it’s undeniable that college still has a significant monetary value. If you have a degree, you’re more likely to get a good job right out of college in your chosen field than your peers who don’t. Throughout your career, you’re likely to get promoted faster and make a lot more money.

College is an investment like any other, and it provides a quantifiable return. That said, it’s not the optimal investment for everyone. You may find that your time and money would be better off elsewhere, depending on your goals, preferences, and financial starting point.

Remember, You’re Not Necessarily the Average

Humans like to use medians and averages to figure out what will they can expect to happen to them, but a truly average experience is (counterintuitively) rare in many circumstances. For example, the stock market averages roughly a 12% return each year. In practice, it’s more like plus 35% one year and negative 10% in the next.

The cost and benefits of college are similar. For some people, attending college is a slam dunk. They might get a full scholarship to a great school, a valuable degree, and find themselves with a six-figure job locked in before they graduate.

Other people take out loans to pay tuition at an expensive out-of-state university, struggle through four years of tough courses, then find that no one wants to hire them. The numbers suggest that most people are better off with a degree but don’t take that as a guarantee.

Do the Math Before Investing in College

As you can see, the claims that college is worthless are mostly baseless, even if your only definition of value is economic. People who graduate with a useful college degree from a good school still have a statistical advantage in the workforce.

That doesn’t mean that everyone needs to go to college to be successful, though. It also doesn’t mean that everyone who goes to college will be successful. On average, most people are better off with a college degree, but your outcome depends significantly on your unique circumstances.

Before you commit to the steep investment of a college degree, do the math on your return. Figure out the total cost of your intended degree, including missed wages and the interest on any loans. Compare that to the increase in earnings you expect to receive upon graduation. Use data from people in your desired career path to get an approximation. Consider other possibilities, like trade schools or associate degree programs, which can lead to steady employment without excessive cost or debt.

Learn more:
Trade School or College? What’s the Difference? Pros and Cons of Each
10 Best Trade Jobs: Earn a Great Living Without a Degree

If you need help with the decision to go to college, consider working with a professional guidance counselor. They can help you figure out how much your degree would cost and how much it might benefit you on the back end.

The post College Is Worthless! You’ve Heard the Stories, but Is It True? appeared first on FinMasters.

We asked a group of financial professionals, businesspeople, and people who have been there and done that for their #1 tips for college students. Here’s what we got.

What They Said

As usual, some items appeared more than once. We tried to avoid duplication in the responses, but here are some of the subjects that were most often discussed.

• Budgeting: The most common responses emphasized the need to budget effectively and track income and spending.
• Loan Management: Several respondents stressed the need to select affordable schools, minimize borrowing, and avoid spending student loan money on non-essentials.
• Part-time jobs: multiple responses advised students to look for part-time work to supplement their income.
• Credit cards: Several respondents advised getting a credit card and using it carefully to build credit. Others warned about the danger of racking up debt.
• Saving money: another common piece of advise was to spend only on essentials and avoid luxuries.

We would point out that while many of these suggestions are good advice for some students, some may not be good advice for all students, and there’s often an “if” involved. For example, it’s certainly worth taking on a part-time job or side hustle, but if the demands on your time mean taking an extra year to graduate, you won’t come out ahead financially.

As with most money questions, you’ll need to balance the pros and cons and come up with the best strategy for you. For another perspective, check out our article on college without debt.

What’s Your #1 Financial Tip for College Students?

Here’s what our eighteen panelists had to say.

Jim Wang
Founder
Wallet Hacks

Avoid Debt As Much as Possible

My number one financial tip for college students is to avoid debt as much as possible, especially higher interest consumer debt like from credit cards or other sources of financing (perhaps from furniture or electronic stores). Student loan debt may be unavoidable but try to only use that for tuition, room, board, books, and other academically related uses. Avoid the temptation to use that “free money” on other things like a spring break trip or the local bar. Debt, especially the high interest kind, can follow you for a long time and be a huge burden on your financial growth.

Another tip is that you should experiment with various side hustles while you’re in college. It’s a great way to earn spending money (and avoid debt!) and see if there are things you may enjoy doing and things you don’t. In college, I used to flip items on eBay and learned that while it was lucrative, I really didn’t enjoy the customer service aspect of it. Sometimes you get a buyer who is exceptionally picky about the condition of an item (or they were looking to get a further discount) and I learned that dealing with those issues wasn’t for me! I did enjoy the flexibility of the work, the treasure hunting aspect of flipping items, and so I leaned towards finding jobs that had those aspects without the customer service.

Experiment with various side hustles while you're in college.

Click To Tweet

Jim Wang is the founder of WalletHacks.com, a personal finance blog that helps young professionals and new families better manage their money to live the life they want.

Mark Kantrowitz
President
PrivateStudentLoans.guru

Scale Your Debt to Your Expected Income

Keep your student loan debt in sync with your income after graduation.

If your total student loan debt at graduation is less than your annual starting salary, you should be able to afford to repay your student loans in ten years or less.

If your total debt exceeds your annual income, you’ll struggle to repay your student loans and will need an extended or income-driven repayment plan to afford the monthly loan payments. These repayment plans reduce the monthly loan payments by increasing the repayment term to 20, 25 or even 30 years. But, this comes at a cost of paying more interest over the life of the loan. You’ll also still be in debt when your children enroll in college.

Do not treat loan limits as targets. Borrow only what you need, not what you can. Live like a student while you’re in school, so you don’t have to live like a student after you graduate.

Create a descriptive budget, where you track your spending, assigning each expense to one of several broad categories, such as food, entertainment, tuition, clothing, housing, medical care, taxes, etc. Also tag each expense as mandatory (need) or discretionary (want). At the end of each month, total up each category and tag. Increasing awareness of spending will help you exercise restraint.

Try to use paper instead of plastic (money, that is). Spending $500 on a credit or debit card feels the same as spending $5. If you have to count out a bunch of $20 bills, it feels like you’re spending money, making it more real.

Live like a student while you're in school, so you don't have to live like a student after you graduate.

Click To Tweet

Mark Kantrowitz is the Publisher of PrivateStudentLoans.guru, a free website about student loans. He is an expert on student financial aid, scholarships, 529 plans, and student loans. He has been quoted in more than 10,000 newspaper and magazine articles about college admissions and financial aid. He has written for the New York Times, Wall Street Journal, Washington Post, Reuters, U.S. News & World Report, MarketWatch, Money Magazine, Forbes, Newsweek, and Time. He is the author of five bestselling books about scholarships and financial aid and holds seven patents. His latest book is “Who Graduates from College? Who Doesn’t?” Mark serves on the editorial board of the Journal of Student Financial Aid, the editorial advisory board of Bottom Line/Personal, and is a member of the board of trustees of the Center for Excellence in Education. He has Bachelor’s degrees in mathematics and philosophy from the Massachusetts Institute of Technology (MIT) and a Master’s degree in computer science from Carnegie Mellon University (CMU).

Robert R. Johnson
Professor of Finance; Chairman and CEO
Creighton University

Minimize Bad Debt

While not all debt is bad, not all debt is created equal. Some experts would contend that student loans are bad debt, but I disagree. I would categorize modest student loan debt as being “good debt.” In my opinion, student loans get a bad rap. There is no doubt that the system has been abused and that some students have accumulated a mountain of debt and have earned degrees that simply won’t provide the earning power to pay that debt back. But, used judiciously— and to earn degrees that truly build a person’s human capital and earning power — student loans can be an essential bridge to career success.

On the other hand, without question, credit card debt is bad debt. And, the priority should be to minimize the use of credit cards. People would be well served to realize that debt extinguishment should be a priority. To quote Albert Einstein “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” People can put their financial house in order by reducing debt and acquiring assets that grow in value over time. The fastest way to put one’s financial house in order is to obtain more assets that earn compound in value (like stocks or CDs), reduce one’s debts and lower interest payments.

Without question, credit card debt is bad debt.

Click To Tweet

Robert R. Johnson, Ph.D., CFA, CAIA is a Professor of Finance in the Heider College of Business at Creighton University. He is also the Founder and CEO of Economic Index Associates, an NYC-based firm that develops investable indexes. He is co-author of The Tools and Techniques Of Investment Planning, Strategic Value Investing, and Investment Banking for Dummies, among others. He was formerly deputy CEO of CFA Institute in charge of the CFA Program and was President of the American College of Financial Services.

Lauren Keys
Owner & Author
Trip Of A Lifestyle

Find Ways to Spend Less

The biggest financial hack that saved me in college was finding ways to live on less. Financial experts often encourage people to “live below their means,” but not many offer concrete ways to do that.

Here’s what helped me graduate college debt-free with some money in the bank:

• Live with roommates, because housing costs don’t scale proportional to the number of rooms. A 2-bedroom apartment doesn’t cost twice what a 1-bedroom apartment does, so the per-person cost is lower.
• Avoid transportation costs by biking, walking, or taking public transportation as much as possible. If you absolutely need to own a car, find a cheap, used one that you can pay cash for.
• Avoid restaurants and grocery stores. Instead, cook at home and buy your groceries at Walmart. Try inviting friends for a dinner party or afternoon picnic instead of going out!
• Take advantage of all the free stuff on campus (gym membership, movie screenings, club meetings, student life activities, and all the free pizza). The entire “college experience” is already priced into your tuition!

It also helps to increase your income, so choose a part-time job that pays the most per hour. I recommend tipped positions. Before I was qualified for other jobs, I worked at a restaurant where the base pay was around $5/hour, but with tips, I ended up averaging $20+/hour.

Take advantage of all the free stuff on campus.

Click To Tweet

Lauren Keys graduated college debt-free and worked in marketing for 8 years before retiring at age 29. She details her journey to financial independence on her blog, Trip Of A Lifestyle, which is focused on how to have fun while also saving enough money to quit working full-time decades before everyone else. Trip Of A Lifestyle is a completely free resource to help more people get rich, work less, and travel whenever.

Todd Christensen
Education Manager
Debt Reduction Services, Inc.

Live Like a College Student

My #1 financial tip for college students is simple: live like a college student. You’ve grown up in a lifestyle that took years or even decades to create. Parents likely provided plenty of good food, made transportation available, gave you a comfortable room, and may have even paid for your entertainment options.

As a college student, you should not expect to have the same lifestyle as you had back home. Don’t go out and get into a car loan because you have to have a new, 100% reliable car. Don’t max out your student loans so you can use them to supplement your weekend entertainment options. Don’t get a credit card so you can buy the nicest of everything. Live like an independent college student, not the dependent child of a 40-year old working adult. Live responsibly below your means.

I’m not anti-student loan, but I see far too many college students maxing out their student loans, asking their parents to max out their student loans, all so they can live the lifestyle they were accustomed to back home.

You should not expect to have the same lifestyle as you had back home.

Click To Tweet

Todd Christensen is the author of Everyday Money for Everyday People and an AFCPE-Accredited Financial Counselor. He has led more than 1,000 personal finance workshops and developed scores of online courses and webinars for individuals, couples, and organizations around the county since 2004.

Ben Taylor
Founder
HomeWorkingClub.com

Find an Income

Establish some streams of side income.

The students of a decade or two ago would be highly envious of the diverse range of earning opportunities for students – many of which require nothing more than a computer and internet connection.

From merchandise design to tutoring and micro working, there’s really no excuse to be a “poor student” anymore. Not that long ago, students had few options beyond washing dishes or serving behind a bar. There’s far more choice now, and it includes things that can boost a future resumé or even form the foundations of a future career.

There’s really no excuse to be a “poor student” anymore.

Click To Tweet

Ben Taylor has been a business and IT consultant since 2004. He’s the founder of HomeWorkingClub.com, a global portal for freelancers and remote workers.

Shannon Bernadin
CEO
The African Garden

Take Charge of Your Budget

I would encourage all college students to be the boss of their own budget. This is a really important lesson for all students to learn, and delegating yourself a budget should be a top priority. Knowing exactly how much income you have is essential to the success of this task, and you need to make this income last.

Figure out exactly how much cash you have coming in, including any additional loans or money that is coming from other sources in addition to your main income. Now, you will need to find out exactly how much money is going out on things like rent, bills, socializing, college resources, and more.

Once you have figured out both your incomings and outgoings, you can subtract your outgoings from your income to find out exactly how much money you have to live off for each month. It is essential that you don’t spend more than you have coming in. Ideally, it is also a good idea to put a specific amount, no matter how big or small, into a savings account each month.

It is essential that you don’t spend more than you have coming in.

Click To Tweet

Shannon Bernadin is a botanist and the horticultural fanatic responsible for creating The African Garden. She has spent her life devoted to the flowers and fauna that populate the average American yard and brought her online garden to life to share her knowledge with anyone and everyone interested in floriculture.

Allan Borch
Founder
DotcomDollar.com

Don’t Spend Student Loan Money on Non-Essentials

Some college students spend part of their loan money on clothing or entertainment, but this decision could come back to haunt you.

Be intentional about how much debt you take on, and avoid spending student loans on vacations or music festivals. If you find you took out more student loans than you need, return the money so you don’t end up paying interest on it.

Bottom line: If you’re using student loan money for non-essentials, you could come to regret it after graduation when those first student loan bills kick in. Not only will you have higher monthly payments, but your larger debt balance will accumulate serious interest.

If you’re using student loan money for non-essentials, you could come to regret it after graduation.

Click To Tweet

Allan Borch is the founder of Dotcom Dollar. He started his own online business and quit his job in 2015 to travel the world. This was achieved through e-commerce sales and affiliate SEO. He started Dotcom Dollar to help aspiring entrepreneurs create a successful online business while avoiding crucial mistakes along the way.

Lauren Tingley
Teacher and Former College Advisor
Simply Well Balanced

Choose an Affordable School

Having worked with thousands of families throughout the process of applying and enrolling in college my number one financial tip is to choose the college or university that you can afford. I have seen students and parents devastated by financial debt due to choosing a college or program that was out of their budget. It is even more devastating when the student drops out or decides to change their major, adding years to their graduation date.

I have spoken with many students who say they “refuse” to go to an affordable community college or state university. However, the reality is that if you can’t afford the expense of the college you hope to attend, you need to consider more affordable options. Do not expect your parents to go into debt for your education. If you hope to make wise financial decisions as an adult, you need to learn how to live within your means and sacrifice the things you want for the things you need. While you may want to go to an out of state school by the beach, but what you need is a degree and the best choice is to earn it at the most affordable school you can find.

You may want to go to an out of state school by the beach, but what you need is a degree.

Click To Tweet

Lauren Tingley is the creator of Simply Well Balanced, a site where she shares tips to simplify family life.

Charlotte Senger
Co-Founder
Senior Strong

Manage Your Money

College is often a student’s first big step into the real world in terms of budget planning. Consequently, many students come unprepared to handle such a task. One of the many reasons why budgeting is important is that students who do not learn financial management risk running out of student loans and dropping out of college.

I believe that if students learn a few basic tips and tricks, they can avoid facing any sort of financial constraints. To manage their money, the first step they must take is to develop a budget proposal to evaluate their revenue and expenditures and set a monthly budget. Furthermore, learning to distinguish between my wants and needs was something that helped me get through college without ever going broke. This helped in preventing impulsive buying and spending. I also applied this rule to situations where I was subjected to peer pressure and learned to say no.

Another thing I did was to always have emergency cash on me to pay for unforeseen bills like parking permits and repairs, because even a single unanticipated event can send a student’s monthly budget spiraling out of control. Finally, my advice is that students must understand that they can become trapped in a debt crisis if they mishandle their credit cards and mishandle their student loans for immediate gratification. They must comprehend that their credit mismanagement will have an impact on their credit score and, ultimately, their financial future. Hence, budgeting is a very important skill that every college student should master.

Learning to distinguish between my wants and needs was something that helped me get through college without ever going broke.

Click To Tweet

Charlotte Senger is the co-founder and senior discount expert at SeniorStrong.org. She is very involved in the work of helping families opt for the best discounts for their needs. As a blogger, social worker, accountant, and advocate, she has over 10 years of experience helping adults and their families.

David Scott
CEO and Founder
Top Reviews

Buy Used, Tutor On the Side

Two tips for college students:

DON’T BUY NEW! If you’re like most college students, you’re on a tight budget. So when your professor assigns a ridiculously expensive reading for class, it’s tempting to just buy the book brand new from the campus bookstore. But before you do that, think about other options.. You could rent or borrow the book from a friend or the library, or even buy it used online, which I normally do. In most cases, buying new just isn’t necessary anymore – and it can end up costing you more in the long run. So save your money and don’t buy new stuff during college!

Do Tutoring as a Part-Time Job! Finding a job to pay the bills and keep me afloat during college was a challenge. If you’re looking for a part-time job that can help you stay in school, tutoring may be the perfect fit. Tutoring is one of the best part-time jobs for college students because it’s flexible, pays well, and helps you build your resume. The tool that has been handy for me during college was google calendar because it is basically free! It keeps me on track with the deadlines and tutoring schedule so that I can plan my week ahead, So if you’re ready to take on some extra mile, consider becoming a tutor!

Tutoring is one of the best part-time jobs for college students because it's flexible, pays well, and helps you build your resume.

Click To Tweet

David Scott is a software developer by day, and the chief editor and publisher of TopReviews by night.

Chris Muller
Director of Audience Growth
DoughRoller

Take Charge and Accept Responsibility

Given that you are now a college student, it is probable that you are in charge of your personal financial affairs to a greater extent than you were while you were still living at home and functioning primarily as a subset of your family’s economic universe. You do, without a doubt, have greater discretion over where and how you spend your money, especially if your parents live a long-distance away. However, independence comes with the duty to manage one’s finances prudently.

Here are two suggestions to assist you to maintain a healthy financial situation as you begin your college career.

• Take charge and accept responsibility. Unfortunately, it’s all too easy to lose sight of your money when there are so many other obstacles to overcome and adaptations to make due to being a student in college. However, you cannot start your adult life with poor money management skills, and college is a perfect moment to decide to take care of your finances and be fiscally responsible with your money.
• Keep track of everything. Create a habit for yourself that includes keeping track of your finances consistently. Your financial condition will become more apparent if you keep meticulous records of what you’ve paid out and how much money you have leftover in your account(s) to fulfill the remaining portion of your monthly costs. Maintaining your financial self-awareness is essential for staying on track. The fact that you have a general idea of when you can get a few extra dollars from ATM and when you have to curb your appetite for an expensive meal off-campus will make your life more manageable and allow you to focus on more important matters — like your grades — will make your life calmer and will enable you to worry about more important issues — like your grades.

Maintaining your financial self-awareness is essential for staying on track.

Click To Tweet

Chris Muller is a businessman and director of Audience Growth at personal finance blog Dough Roller

Matthew Robbs
Founder
Smart Saving Advice

Avoid Credit Card Debt

College is one of the most trying times for young adults both in regards to stress and finances.

The number one tip that I always give those that are going off to college is to avoid credit card debt. Going into credit card debt as a college student is easy as you finally have access to “adult money”.

But be warned, those charges on your new credit card can last long past your graduation date. I had many friends in college who charged everything from a weekend party to the books for their classes. While at the time the lifestyle they were living seemed like a lot of fun, the mountain of debt they were burying themselves under was far less fun.

I always advise new college students to only get a credit card if they make sure they can pay it off every single month. If you miss a single month’s payment in full then cut up the card and don’t use it again until that debt is payed off.

The lifestyle they were living seemed like a lot of fun, the mountain of debt they were burying themselves under was far less fun.

Click To Tweet

Matthew Robbs is the founder of Smart Saving Advice. A blog designed to help people make smart financial decisions.

Jake Hill
CEO
DebtHammer

Minimize Your Borrowing

If you have to take out loans, take out the smallest loans possible. As a financial expert who took out over $100k in student loans, I can tell you from both expert opinion AND personal experience that student loans really weigh you down. If I could go back in time and take out smaller loans, I would do whatever it took to make that happen. That’s why I always suggest having a job while you’re in college, even if you only work a couple of hours a week, because a little goes a long way. There are also options like being an RA which can help you save on room costs, which will decrease the amount of loans you have to take out.

I can tell you from both expert opinion AND personal experience that student loans really weigh you down.

Click To Tweet

Jake Hill is CEO of DebtHammer, a top personal finance publication that aims to help people make better financial decisions.

Stephen Curry
CEO
CocoSign

Buy Books After Classes Start

Before the semester begins, lecturers tend to send a long list of books you are supposed to buy for use in that class. Later on, only a quarter or less of those books are used after spending hundreds of dollars purchasing them all. Hence, it is advisable to buy books only after the classes start, so you are sure you will use them and avoid wasting money. A good way to save on books is to buy them used since they are cheaper and make sure to keep them in good condition so you can resell them later. Alternatively, you can opt for digital copies since they are easy to access on the go and will in most cases be cheaper than physical books.

A good way to save on books is to buy them used since they are cheaper.

Click To Tweet

Stephen Curry is CEO of CocoSign , a digital signature service provider helping businesses to automate and streamline documentation processes.

Jacqueline Gilchrist
Founder
Mom Money Map

Limit Your Non-Essentials

My #1 financial tip for college students is to limit your non-essentials. With the latest and greatest products constantly being advertised, it’s easy to think that these items are necessities. You don’t need the trendy sweater that an actor you admire was wearing if your current go-to sweater is in good condition. You don’t need the most updated iPhone if your current phone works just fine. You need to learn to ignore the advertising and use what you have until it’s beyond repair. When what you have is no longer working, you might want to consider getting it fixed before seeking a replacement.

Ignore the advertising and use what you have until it's beyond repair.

Click To Tweet

Jacqueline Gilchrist is the founder of Mom Money Map, a resource treasuring time and money. She uses her MBA, BComm and corporate strategic planning experience to help people manage their finances so they can achieve their financial goals.

Melanie Hanson
Editor in Chief
EDI Refinance

Have a Plan

This isn’t so much a tip as it is a mindset. While a college degree is still one of the best things you can do for your future earnings potential, the rising price of tuition and historically stagnant wages mean that getting that diploma is more of a financial risk than it’s been in a long time.

With all this in mind, you need to go to college with a plan that emphasizes getting the most earnings potential for the least tuition. That starts before you even apply to schools when you choose a degree or certification to aim for. Focus on something with both good wages and a wide variety of job openings across the country.

From there, your next stop should be your local community college in order to take as many general credits as possible at lower prices. The jump from community college to a four-year institution should be one more chance to reassess your options and make sure you’re picking a school and a major that are a good fit for you. Focus on graduating quickly by taking as many credits as you can handle during regular semesters and taking advantage of summer terms where they exist.

If you prioritize the financial aspects throughout your college career, you’ll graduate with a minimum of debt and a clear job path.

Go to college with a plan that emphasizes getting the most earnings potential for the least tuition.

Click To Tweet

Melanie Hanson is an educator, research analyst and the senior editor for EducationData.org. She is an alumnus of the University of Iowa and began teaching as a graduate assistant while she earned her master’s degree in writing from the School of the Art Institute of Chicago. Since then, she has led classrooms from the kindergarten level through senior undergraduates. In working with postsecondary students, she focuses on research and source vetting. At the primary and secondary levels, she encourages critical thinking and exploration.

Ferenc Elekes
Founder & Editor
Overlandsite

Keep Track of Your Money

My number one tip is that you should always keep track of your money. The easiest way as a college student is to set up a very basic excel sheet. Nothing fancy is needed, just the numbers for how much you get in a month, what you spend on, and how much you want to save for a rainy day. When setting up your budget sheet think about what categories your expenses will fall into. Groceries, clothing, travel, bills/rent, entertainment, savings, etc.

This way you can quickly make financial decisions like which category is the most expensive, what do you want to cut back on, etc. After running this chart for a short while you will begin to see where you have to fine-tune your spending. For example, if you’re trying to save up some money but your entertainment expenses are way too high then you can think about how you want to limit yourself. A good next step is to add values to each category. For example, groceries 200 – 250 USD/month, or save 15% of your income.

I remember doing the same thing when I was in college. Keeping track of my expenses helped me become a more conscious spender. It also allowed me to save money every month so I had a little extra just in case. The most surprising part of it was that the small amount of effort made the financial part of the college experience noticeably easier.

Keeping track of my expenses helped me become a more conscious spender.

Click To Tweet

Ferenc Elekes has been a devout Overlanding enthusiast for many years. During that time, Ferenc has explored 75 countries on six continents, with overland travel involved in 40 countries on three continents. On his website, he shares informed opinions about everything from the best overland gear to how to get a vehicle unstuck. Ferenc has also written for Ih8mud, the Expedition Portal, the Overland Journal, and he is often invited as a guest to outdoors-related podcasts.

Let’s Sum That Up

College is a time for gaining skills and knowledge that will boost our personal satisfaction and professional prospects for the rest of our lives. For many of us it’s also the first time we live alone, and a chance to develop positive financial habits that will stay with us for life.

We hope these tips will help you put your student finances in better order and build positive money habits!

The post 18 Financial Tips for College Students appeared first on FinMasters.

1. Education Is a Lifelong Currency

You can store money in a bank, you can invest it in an apartment or a car, or you can gain new knowledge. Knowledge is independent of course, mileage, or location. It is not related to the degree of protection of your bank. It will not depreciate and will not disappear. Knowledge is reliability.

2. Professional Development

In any profession, it is important to learn something new, improve your skills constantly. The more time you devote to self-development, the more valuable your work is. Education is the foundation for professional success.

3. Allows You to Learn While Doing What You Love

You can upgrade your skills and attend courses. Or you can learn from scratch what brings you pleasure and get extra income from it. If there’s a subject that interests you or piques your curiosity, learn more about it. You never know what doors that knowledge will open.

4. Get a Second Wind

You’ve wanted to reach your potential for a long time, but for some reason, you haven’t gone as far as you wanted. Do you want to change jobs or get a raise? Education can open doors. Continous development will help you to think freely, open new horizons for your personal growth, and most importantly, help to stay relevant in the labor market.

5. Education Helps You Avoid Being Cheated

Education opens new horizons and helps you set more effective priorities. When you value yourself for what you know instead of what you own you’ll be more resistant to peer pressure and the persuasion of advertising. You will become more relaxed about new products, and you will understand for sure which purchase will objectively benefit you and which will simply waste your money.

6. Choose the Life You Want

They say that all the limitations are in our heads, but it is not entirely true. Education has a huge impact on your career options. Of course, there are people who get successful without a solid education, but those are exceptions that confirm the rule. The data are clear: the more education you have, the more likely you are to achieve professional success and satisfaction.

7. Gives You a Better Communication Circle

You must have heard that your success is highly determined by the success of your 5 closest people in a communication circle. Spending time in a good college or university places you in a potentially much more successful circle and helps you form useful connections.

8. Gives You Better Social Standing

Maybe in the future people will be graded differently, but now, your education and your career define who you are in many aspects. Good education raises your social standing, and that is not a social illusion. Even banks like you more!

9. Reveals Your True Talents

Education gives you the opportunity to reveal your talents, find out what is that you like to do the most, and develop in that field. It requires time and effort, but the result is worth the cost. When you find out where your real skills and inclinations lie, life will become much happier and more fulfilling. 

10. Makes Your Parents Happy

Yes, you may think it is lame, but it is true. Even if you are 30 years old already, your parents will love you to invest in education. That is how the parents are and always will be. Maybe you can fulfill their dreams and help yourself at the same time!

How to Set Goals Before Your Decide to Invest

1. Set your goals – why do you want this particular education? The answer to this question will help you understand what you want, why, and how to achieve it.
2. Decide on the niche in which you want to succeed. Whether it’s global or local, understanding your target will help you understand what you need to achieve it..
3. Create a plan for self-development. Print it out, hang on the wall, and check it every day.

Any education or self-development plan should be systematic. Review your progress regularly, adapt your plan as needed, and focus on the goal!

Risks of Investing in Education

Any investment is always accompanied by some risks. An investment in education is no different. That doesn’t mean you shouldn’t invest. It is important to be aware of the extent of the risks and analyze the balance of costs and potential profits. If you decide to invest in college education and self-development, evaluate the following risks:

• You may not use the knowledge and skills you gain. To avoid this, once again, analyze your goals and objectives.
• You may not gain the skills you need. You need discipline and commitment to make the most of any education program.
• You may be taking up the wrong subjects. Before investing resources in courses, seminars, conferences, webinars, and other forms of obtaining knowledge, re-read the program, and make sure that this is exactly the knowledge that you need.

The plan of investment is up to you. But remember that there is no useless knowledge. Investing in yourself is one of the best long-term steps you can take!

The post 10 Reasons Why You Should Invest in Your Education appeared first on FinMasters.

The answer to that question depends on several factors, and it’s worth taking a closer look.

Colleges: What’s the Difference?

Your college options fall into a few broad categories.

• 2-year state colleges or community colleges, offering a range of certificate and Associate degree options.
• 4-year state colleges, offering 4-year Bachelor’s degree programs.
• State Universities, offering both Bachelor’s and post-graduate Masters and PhD options. In-state students typically pay much lower tuition.
• Private for-profit colleges, operated as private businesses and typically offering 4-year degrees.
• Private colleges and universities offering Bachelor’s, Masters, and PhD programs.
• Highly exclusive private colleges are at the top of the cost and prestige pyramids and are the most sought-after schools.

The differences between these schools are clear enough, but the impact of those differences on your future may be less clear. For example, imagine that a student is accepted at both a private university and a state university in their state of residence. What would that student lose by selecting the much more affordable state option?

The Difference: Earnings 10 Years After Graduation

Some of the differences between colleges, like prestige and student experience, are hard to compare. It is easier to compare the impact of college selection on income.

Income by Major and Selectivity, 2003, 10 Years After Earning Bachelor’s Degree
Source: Inside Higher Ed

These figures show a clear relationship: in any given field, graduates from more selective institutions earn more, and graduates of the most selective institutions earn a lot more.

They also reveal a less obvious truth: graduates in high-value fields at less selective schools may earn more than graduates in lower-value fields from more selective schools.

Other studies suggest, however, that the income gains from attending a selective school vary widely among majors^[1]. Specifically, they found that the gap between more selective and less selective schools was minimal in engineering and other STEM fields, but much more significant among business and liberal arts graduates.

Diplomas from prestigious schools boost future earnings only in certain fields, while in other fields they simply don’t make a difference.

Eric Eide, Professor of Economics, Brigham Young University

But What About Costs?

A degree from a selective school will probably allow you to earn more than a degree in the same field from a less selective school. It will also cost you more, in many cases a whole lot more. Let’s look at some of the differences.

Total Cost of a Degree
Source: EducationData.org

The most exclusive private colleges and universities may cost substantially more. The University of Chicago, for example, costs an eye-watering $77,556 a year for tuition and room and board alone, for a total degree cost approaching $350,000!

Assuming that the discussion is based purely on costs vs. expected income, we then have to decide whether the higher incomes earned by graduates of exclusive schools justify the higher cost.

A report from the Georgetown Center on Education and the Workforce determined that the economic gain from a private not-for-profit college is $838,000, while that of a public college was $765,000^[2]. That’s a difference of $73,000. That study included the actual cost of the degree in its findings, but there are other factors to consider.

The Financing Factor

Much of this comparison depends on how you intend to finance your education.

Student Loans

Most American college students now finance at least part of their education with student loans. If you’re using loans to finance your education you’ll have to factor interest expenses into your calculations.

The loan expense isn’t the only burden. Many people who are paying off student loans find it difficult or impossible to save for retirement early in their careers, depriving them of those critical early-career investments that have the most time to grow.

If you’re financing your education with loans, there’s a strong argument for selecting a less expensive school, minimizing debt, and making early-career contributions to a retirement fund rather than paying off a huge student loan bill. It’s even possible to go to college without debt!

Income & Savings

Some parents are still able to pay for college with their own money. In that case, wouldn’t it make sense to invest in an exclusive school? Maybe, but it might not be the bets decision.

How much more would your child earn over a lifetime with that degree from an exclusive school? Probably more than they would from a degree from the in-state school, but not $4.5 million more! Of course it’s nice to have a degree from a prestigious school, but it’s also nice to have a nest egg in your future!

Scholarships and Grants

We’ve been basing our calculations on the assumption that you’re paying the entire cost of your education, either with your own money or borrowed money. In practice that is often not the case.

Does it Matter Where You Go to College?

Click To Tweet

You may have heard that over 86% of undergraduate students receive some form of financial aid. That figure is accurate, but it includes federal student loans. The number of students getting outright grants is significantly lower. 42.6% of students get federal grants, with the average grant amount standing at $5,179 a year^[3].

Many private colleges, including very exclusive ones, have their own financial aid programs. Harvard, for example, costs $74,600 a year, but 55% of the students receive some level of scholarship from the school, potentially along with other aid sources. 20% of the students pay nothing at all.

Scholarships and grants can significantly defray the cost of education, but don’t count on a free ride. One source of financial aid data claims that 1.% of undergraduates in 2015-16 were getting enough scholarship aid to cover the entire cost of their education. 2.7% had enough to cover 90% of the cost, and 18.8% had 50% of the cost paid for them^[4].

Of course, you could be one of those that get the scholarships. If you get accepted to an exclusive private school and receive a substantial scholarship, that would swing the financial balance in favor of that school. You’d be getting the benefits of that exclusive degree at much less than the sticker price.

Making Your Decision

Ultimately the choice that matters is whether where you go to college makes a difference for you. Each student is unique and each college has its own cost/benefit ratio. Here are some things to consider when making that personal decision.

• Where are you likely to be accepted? Don’t worry about costs and benefits for a school that won’t let you in.
• What will you study? An exclusive degree can be a huge asset in some fields but less important in others.
• What is the school’s completion rate? If you take more than 4 years to finish or don’t finish at all you may have more expense and less benefit.
• How will you finance your education? If you are borrowing or using your own money, consider spending less and trying to invest more and earlier.
• How much financial aid can you get? If the cost will be defrayed by financial aid, you can get the benefits of an exclusive school without the cost.

If the most cost-effective solution for you is a less exclusive college or an in-state private college, don’t feel as if you’re handicapped. A motivated student from any college can succeed. Plenty of State University graduates are achieving as much and earning as much as their Ivy League counterparts, and a degree from an exclusive school does not assure success.

In that sense, where you go to college really doesn’t matter, or at least it doesn’t matter as much as some may think. The averages might say you’ll do better if you come out of an exclusive private school, but you don’t have to be average! Many, many students have come out of less prominent schools and enjoyed successful and rewarding careers. You can do it too!

The post Does it Matter Where You Go to College? appeared first on FinMasters.