How our money experts save money, #9 in a series

I’m in a life phase now where it’s just hard to save money. My child is about to start her freshman year at a university about 250 miles from home. Over the years, we’ve been putting money into a 529 plan and other accounts for the big expenses—tuition, room, board—so we feel somewhat prepared on that front. But the incidental costs—travel, new gear, cell phone expenses, etc.—can add up to lots of additional dollars. We’ve traveled back and forth twice so far and are planning her big move in a few weeks. So while we’re spending, I’m still looking for ways to save.

We don’t have a car large enough to transport the three of us and all her clothes and things down to college, so we’re renting a minivan. First I used Expedia and Travelocity to locate rentals, but wasn’t able to find anything cheaper than about $600 for four days. I tried searching all the major car rental agencies within a 10 mile radius of my home through their own Web sites, then tinkered with the pickup and drop-off times, the car model, and the branch office to see which variables affected the rental rate. I found my best price at Budget but rather than book through the Web site, I called the local office to see if I couldn’t get a better rate. The woman assured me that she couldn’t match the online rate I found. Before I booked, though, I did a Google search for “Budget Rental” and “coupon.” I got an additional $25 off and ended up with a rate of about $375 with unlimited miles.

I’ve been saving Bed Bath & Beyond coupons—some $5 off, some 20% off—to use when we buy dorm furnishings: bed linens, towels, storage containers, decorative items, and bath supplies. We plan to buy as much of that as possible near where she’ll be going to school so we don’t have to transport it all from here. The sales tax is lower there, too.

To avoid unnecessary bank fees, I checked out the banks in her college town and found one close to campus that also has a branch in my hometown. We’ll open an account there so that she’ll have a debit card and access to an ATM that she can use without paying a fee, and I’ll be able to easily transfer cash and monitor her spending.

She’s not taking her car to campus, which will save us some money on our auto insurance. Since her group of “best friends forever” are splitting up and going to different colleges, I’ll also monitor her cell phone and text message usage to make sure she stays within the limits we’ve set; any additional costs will come out of her money. Now we’re checking online sources for textbooks to see if we can’t find the required books at lower prices than her college bookstore offers.

I’m still looking for more ways to save. Readers with tips on how to keep the incidental costs of college in check are invited (please!) to post their comments here.—Noreen Perrotta, money editor

Comments

[S. Chapman]

I suspect many of us have already squeezed our budgets to the point where there's not much excess left. However, here are a few items that have helped me.

1. If you have a job where it's feasible, ask your employer if you can telecommute a few days per week. I drive into work a maximum of 3 times a week, which saves gas and wear and tear on the car.

2. Shop for the lowest electricity rates. If you live in a state with "deregulated" electric utilities, use the web to find the provider with the lowest rate and then get a contract to lock in your savings for at least a year.

3. Unplug electrical items or use a power strip to turn them off completely when not in use. These days, everything from PC printers to TVs draw power continuously, and most of them don't really need to. Take a look around your house and count the number of appliances that are silently using electricity and then disconnect the ones you can.

[ThriftyGradStudent]

I am currently a graduate student at a large university. I receive a small stipend and no support from my parents. I have several suggestions from my many years as a college student.

Everything does not need to be new and bought at Bed Bath and Beyond just for college. What is wrong with the pillows, blankets, towels, hangers, pens and everything else from home? All one really needs to buy new are extra-long sheets, notebooks and a laptop.

Speaking of laptops, my university offers the discounted pricing on laptops and software to incoming students before they start. Check with the school first before heading out to the store to see if they offer this. Education discounts also apply to iPods.

Books can be a very expensive racket. She may not need to purchase every single book - almost every class has copies of the textbooks in reserve that can be checked out for short periods of study time. This is especially useful for classes used to fulfill a requirement and not a major, where the book will probably never be picked up after the term is over. If a book must be purchased, I suggest abebooks.com, which has both used books and current editions printed for international markets which are much cheaper.

[M. Chang]

I found www.half.com a great source for discounted college textbooks. The trick is for the student to try to get the syllabus as far in advance of class as possible to allow ample time for shipping. Also, students should speak with their professors to find out if they can purchase a prior edition of a textbook. Updated editions are the most expensive while prior ones are generally cheaper and the difference in the editions are sometimes very minor.

[Kevin K]

I agree with M.Chang about Half.com, also I've tried Walmart.com, Amazon.com to compare and price books accordingly. Books are a huge racket and one of the things that can save you money is to get a good group of friends and plan out what classes to take so that books are shared. Secondly, try to get a job on campus for the first year so that you are not distracted by private company responsibilities.

[Retired in Connecticut]

Best on the journey, both literally and emotionally.
Our daughter made this journey last year, nearly 600 miles away from home. Things ultimately turned out very well.
Transportation is a huge cost for Thanksgiving, semester end and then back and forth in spring and for the break. Air miles did not work for us as you have to take the cheapest flight that day, and the classes are not over then. The next day is too late, dorms are closed.
Two things disappointed me about the financial arrangements-
1. The 529 could not be used for things that are not listed as necessary by the college. That means that the laptop was not money used tax free from the 529. So transportation, clothing, weekly spending and computer plus programs are not allowable ans we paid tax on that money we took out to spend on college expenses more than tuition and room/board, and books..
2. Also- my husband and I are both retired now, we are 61 and 74. Our lifelong saved nest egg is used by FASFA to keep our daughter from any financial assistance.
So we have to pay 100% of her costs for college from our retirement funds. I never realized that putting aside money above the IRA allowance would be a problem and we are paying over $50K for lat year.
Now on the way again this year, although seh is dean's lsit nad presidnt of her clss- no assistance.
- it is really cutting into savings!

[Luke Kauffman]

College is an incredible experience, but can be stressful at times. Late-night cramming sessions, long research papers, lack of funds are three things to expect as a college student. There are many practices you can adopt to allow yourself to get better grades and have more cash available in your bank account.

First of all, DO NOT BUY BOOKS AT THE BOOKSTORE. Talk about a scam. If you are an engineering or math major, the bookstore will rip you off. These businesses somehow find it reasonable to charge $200 or $300 dollars for a book. Are the pages outlined in gold? The worst part is when you find out that your professor is a "co-author" and says the book is mandatory.

A good way to save money buying books is to check the websites amazon.com, and buy.com. Also, try searching around the internet for school based websites that may offer a student to place a free ad looking for books. You can also put signs up in school facilities asking students if they have the book you're looking for. Remember not to buy books before class begins. You may spend $200 on a book and find out you don't need it. This is after you tore off the plastic, and now you can't take it back. Also, the school library may have a reserved reading room where the book is kept. You could always meet a friend in class and split the cost of the book too. I bought an accounting book on amazon.com last semester for $68. The school bookstore was charging $180. I ended up selling it to the bookstore for $65. Pretty good deal.

The second tip I have is to research teachers and classes before choosing electives. There were a couple of elective I took where it was at 8AM and I had a terrible professor. I didn't do too well. I was learning about stars and planets at 8AM, thinking "what am i doing here". Don't make that mistake. If you take enough bad electives and schedule bad professors in your core classes, you may not pass classes and need to stay another semester. This is easy another 10-15K you need to borrow. Make sure you take your time and manage your class schedule. Talk to upper classman in your major and make sure you schedule meetings with your adviser.

Last bit of advice. Do some research on scholarships. There are so many scholarships available for students. Most students are lazy and do not apply for them. If you have decent grades then you should prepare an essay and fill out an application.