Surviving, and ultimately thriving, during the first semester of college can be an adventure, with memories that will be recounted for years to come. Thus, in just twelve weeks, a first-year student will partake in a multitude of events and experiences such as: attending New Student Orientation, meeting new friends, completing the first day of classes, with midterms soon to follow, beginning to slowly lose friends, returning home for Thanksgiving break, and concluding the semester by knocking out final exams. If you are a parent, also along for this jam-packed ride, you pray (if you are the praying type) that your child continues to practice feasible fiscal habits that complement their rising independence. If such habits are not currently in use, all positive energy and thoughts are redirected to the adoption of sound financial practices for your fervent wish is to eliminate the potential borrower-lender relationship.
In a financial utopia, where the borrower-lender relationship is rarely active, your first-year college student is cruising through independence, specifically regarding financial independence because they had been a part of the collective workforce for roughly four years. As such, they have earned money from various part-time jobs, which has been stored away in a savings account accruing interest monthly. The additional funds stored in a checking account has been designated as money to be used during the first semester and will last the full three months (12 weeks). However, utopias do not exist and as life has coldly illustrated in the past, barriers are always lurking around corners. For example, hidden costs and fees arise, supplemental school supplies are needed for purchase, and on/off-campus party appearances are abundant. As a result, your first-year student’s checking account will plummet from a desired, and often unrealistic, four figures, to three figures, to suddenly two digits. At that point, panic has evolved to a complete meltdown. Should a meltdown ensue, there are a plethora of opportunities for your student to replenish their funds. A few options are: Federal Work-Study and on/off-campus employment. New to the term Federal Work-Study (FWS)? If you nodded yes, that is quite alright. Federal work-study is a component of federal student aid, which provides both full and part-time undergraduate and graduate students with part-time jobs to earn income, assists in paying for expenses (miscellaneous and required), and subsidizes additional financial needs. Likewise, the amount earned cannot exceed your total work-study award, therefore your employer, or financial aid advisor, will take your class schedule and academic progress into consideration when assigning work hours. Unsure if your first-year student is eligible for work-study? Having the student verify with the school’s financial aid office is highly suggested. Similar to work-study, on-campus employment allows students to work for the college or university in attendance. However, on-campus employment is not a component of financial aid, and thus is not classified as student aid. Conversely, when employed off-campus, students will be working for a public agency, or private nonprofit organization, where the work performed provides the public with goods and services (www.studentaid.ed.gov). Knowledge is power, and financial knowledge ensures a powerful and prosperous future. The positive financial habits cultivated during the first three months of college,coupled with cultivating a healthy work ethic that guarantees your return to the organization after the holidays, can lead to not only a successful first semester, but overall first year of college.
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