Managing Your Finances
Students often ask whether it is less expensive to live on campus or off campus. The answer to that question is very individual. It depends on the information that is specific to you. However, we can provide you with information about costs you should consider when moving off campus.
Whether you are just thinking about moving off campus, or have already made the decision, the information that follows is designed to help you anticipate, plan, and; manage the costs of living off campus
Money Saving Tips and Advice
Rent
When you're shopping for an apartment, be sure to ask what utilities are included - heat, hot water, electricity. The more that is included, the more expensive the rent will be, but you also won't have to worry about paying.
Rental costs vary throughout the University area. Here are some factors that determine the amount of rent that is paid:
- In general, the closer the unit is to campus, the more expensive it is.
- In general, the larger the unit, the more expensive it is.
- In general, furnished units are more expensive than unfurnished units.
- In general, the more utilities included in the rent, the more
expensive the rent is.
Other costs may include electricity, gas, cable television, transportation, and groceries.
It is a good idea to protect your security deposit by taking lots of pictures or a video of your apartment BEFORE you move in, while the apartment is empty. This will serve as evidence of the condition of your apartment before you lived there. You should also take similar pictures or a video when you move out.
Winter Heating
If heat is not included in your rent, ask your landlord for an estimate of expected heating costs. You should also contact National Grid at 1-800-642-4272 to request a copy of past bills for a certain apartment. This is the best way to know what you should expect to pay. Also consider signing up for a budget payment plan. It will spread your bills out evenly over the entire year so you’re not stuck with large bills during the winter months. The following are some money saving tips:
- Set your thermostat lower when you are not home and when you are sleeping.
- Put an extra blanket on your bed and wear an extra layer to be comfortable.
- Set your thermostat at 68 degrees. For every degree you set your thermostat back, you can save 3 percent of your annual heating costs.
- Install a programmable thermostat that allows you to set up heating programs that will automatically change the thermostat's set temperature between comfort and energy-saving levels at specified times.
- Keep curtains and shades open during the day to capture daylight warmth and close them at night to prevent heat loss through windows.
- Keep doors of unused rooms closed, and use a towel to eliminate drafts under doors.
Splitting Bills
When you move to an apartment, you'll have many seperate bills. Each bill will need to be in just one person's name. If you have roommates, split the utility bills between house members. This way, one person is not responsible for all of the bills. Communicate with your roomates about what you owe. You do not want your phone disconnected because someone forgot to pay the bill.
Furniture and Kitchenware
Setting up your first apartment can be expensive. You’ll need a lot more furniture and kitchen supplies than you did in the residence halls. Ask family members for extra household items they may not be using again. You can also buy inexpensive kitchen and cleaning supplies at a local dollar store.
Cleaning Supplies
Keep in mind that when you move off campus you’ll be responsible for keeping your entire apartment clean. Make sure you have appropriate cleaning supplies and equipment, such as a vacuum cleaner for carpets or a mop for hardwood floors. You may also want some small rugs to protect the floor from snow and salt in the winter.
Food and Groceries
It’s important to budget enough money to maintain healthy eating habits off campus. Save money by buying in bulk or using coupons. Store brands are often a better bargain than national labels and the quality is just as good.
When comparing costs, keep your eye on unit prices. Another way to eat well on a budget is to purchase a five-meals-a-week meal plan so you have the option of eating some meals on campus.
Pets
One advantage of living off campus is that your apartment may allow you to have a pet. While this seems like a fun benefit, having a pet comes with many costs and responsibilities. It costs a lot to take care of a pet—including food and veterinarian bills. It is illegal to abandon pets once you move, so make sure if you get a pet you’ll be able to take it with you when you move out.
Transportation
Will you be driving more now that you live off campus? Maybe not, but it is an important cost to consider. You should also consider whether you’ll need to pay for parking. If no parking spot is included with your apartment, will there be sufficient off-street parking? Parking tickets can be costly, and parking illegally could get your car towed. You may have to consider keeping your car on campus.
Credit Cards
Resist the urge to use a credit card to pay for living expenses; credit cards aren’t free money! Credit cards typically have very high interest rates. Not only will you be paying for your purchases well into the future, you will actually be paying much more for them than if you just paid cash. It’s a good rule of thumb that if you don’t have enough cash to buy a certain item, you shouldn’t be buying it at all.
Not all cards are created equal
If you apply for a credit card, be sure to fully understand credit
terms and conditions. Compare costs.
Annual Percentage Rate (APR)-The yearly interest charge applicable to outstanding credit balances.
Annual Fee-The once-a-year cost of owning a credit card. Some credit cards have no annual fee.
Grace Period-The period before interest begins to accrue on new purchases.
Minimum Payment-The minimum dollar amount that must be paid each month, usually two or three percent of the amount owed.
Interest Rate-The percent, per unit of time, of the total sum borrowed that is charged by a bank or financial institution for use of their money.
Budget Worksheet
It is important to make a budget if you are considering
moving off campus. Working through a budget will help you identify and
estimate the costs of living on your own. Once you estimate how much it
will cost to live off campus, compare this to the cost of living on campus
to see which option is better for you.
Make sure you use consistent measures; for example, to get an accurate
comparison of income and expenses, you must list them all in the same
units (per month, per semester, or per year). This will require you to
multiply or divide certain income or expenses to be consistent.
Also give some thought to one-time or occasional expenses—things
like car repairs and registration, gifts for friends and family, vacation
and travel, and other expenses that might occur just a few times a year,
or maybe not at all. It’s good to set some money aside for these
unexpected expenses.
You can find some interactive budgets designed especially for students online at the following web sites:
www.accessgroup.org/calculators/in_schlbud.htm
www.radford.edu/~finaid/stbudcalc.html
It is important to note how much of your total income should be allocated for the costs associated with living off campus. The following percentages of your total income are the average for students living off campus. These are only guidelines, however. You should tailor your budget to fit within your needs and priorities. First, use the table below to determine your total income. Then calculate how much should be spent on each expense.
| INCOME SOURCES | Amount |
|---|---|
Family contribution |
|
Scholarships |
|
Employment |
|
Loans |
|
Financial Aid |
|
Savings |
|
Other |
|
Total |
| EXPENSES | PERCENT OF TOTAL INCOME |
AMOUNT |
|---|---|---|
| Education (tuition, books, fees, suppies) | 70% |
|
| Housing (rent, utilities, phone, renter's insurance) | 14% |
|
| Food | 6% |
|
| Transportation (car payment, gas, insurance, repairs) | 5% |
|
| Personal/Miscellaneous (clothing, health, laundry, cleaning) | 3% |
|
| Entertainment (movies, sporting events, concerts) | 1% |
|
| Other Expenses (parking, childcarem loans, travel) | 1% |
|
| Total | 100% |
Tips for skillful money management
- Leave debit and credit cards home and carry only a few dollars with you each day.
- Know the difference between wants and needs and resist the temptation to purchase products online or from catalogs.
- If you decide to have a credit card, choose one with a low or no annual few, a low interest rate, and a long grace period.
- Use a credit card only for convenience, not credit, and pay your bill in full each month.
- Avoid extra fees for ATM withdrawals by using a bank with a convenient local branch.
For Further Information
The Office of Financial Aid and Scholarship Programs
200 Archbold North
315-443-1513
finmail@syr.edu
financialaid.syr.edu
Consumer Credit Counseling
500 South Salina Street, Suite 600
Syracuse, NY 13202-3394
800-479-6026
cccscny.org
Debt Counselors of America
800-680-3328
dca.org