College budgets overlook $20 billion line item

WATERTOWN, Mass. (8/15/07)--Many college students overlook a $20 billion expense when they tally their budgets: travel.

A survey from StudentUniverse.com indicates that the 17 million students heading to school, including three million freshmen, expect to spend that much traveling to and from school this year, while two-thirds admit they don't factor the cost into their spending plans. And even among students who account for travel, 10% report spending more than they budgeted.

"Students are true frequent travelers, traveling eight times per year on average and representing the most active segment of leisure travelers," says Anand Rajaratnam, head of research and marketing for StudentUniverse.com. "With that much travel, the costs can quickly add up. The good news is there are student-specific discounts they can take advantage of," he says.

According to the survey, conducted by telephone and Internet of 896 students nationwide, students spend an average of $1,200 per year on travel. The most popular travel reasons cited:

• Going home or to school (56%)
• Spring break (47%)
• Thanksgiving break (40%)
• "Other" unspecified travel reasons (57%).
  

Student discounts and services catering to students can help save money. In the travel field, for example, survey sponsor StudentUniverse.com claims to save students an average of 13% on airfares available elsewhere on the Web. Student rates are available on everything from museum and movie tickets, to eateries, haircuts, dry cleaners, apparel, and ski passes.

Students can mind their spending plans with these ideas:

• Share the ride. Carpool with other students traveling to and from your home town.
• Make debit a habit. Only spend money you have and you'll never be in a credit crunch.
• Go for the old. New textbooks cost about 25% more than used. Unless it's a book you know you'll keep or it's only available new, stick with used.
• Anticipate expenses. A lot of expenses come at the beginning of the semester or school year. You might be expected to pay first and last months' rent and a security deposit at the beginning of your lease, for example.
• Sack your lunch. You can manage your spending and your eating habits at the same time by packing lunch--and save an average $3 a day, or $60 a month.
• Choose the right financial institution. Members of not-for profit credit unions will save you money on fees, lower loan rates, and higher savings rates.

For more information, read "Credit/Debit Cards, Checking Accounts, Teach Teenagers to Handle Money" in the Home & Family Finance Resource Center.

courtesy of cuna.org