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How to avoid the two biggest costs of university
When my two oldest started at the University of Waterloo last year, it was assumed they would be living at home.
With the University of McMaster, Toronto, Waterloo, Sir Wilfred Laurier and several other universities within driving distance of our home, spending thousands of extra dollars every year (for each kid) just wouldn't have made sense.
Residence might teach important life lessons, such as independence and responsibility. But those life lessons cost you. Big time.
According to a special report released by TD Bank Financial Group last week, the total cost of a four-year undergraduate degree for a student living away from home is $80,498. Living at home saves almost $30,000, with a four-year cost of $53,356. And the cost is only going to go up. In 18 years, the projected cost of a four-year undergraduate degree is $137,013 for those students living away from home, and $101,426 for those who stay at home.
To be honest, I thought it would be more.
Never mind worrying about partying, drinking, a poor diet, or those other negative stereotypes often associated with living in residence.
Living away from home is a huge expense, and the larger student loans required could follow your child for years. For parents who plan to pay their children's way through university, they had better start saving up in advance. Way in advance. Heck, once your child is in high school, it may already be too late. The best time to start saving might be even before they're born. Especially if, like me, you have more than one. Or two. Three, four, and well, you get the picture.
Of course, who knows how many of my children will actually attend university in the end. At least one of them might decide to attend college and go into the trades. Or start their own business. Just as long as none of them decide to become a professional student, I'm ready to support their decision.
Residence is expensive enough. But there's an even bigger expense parents might need to watch out for. Your child spending a few years 'finding themself' in university. Or deciding to switch majors after a year or two. Maybe more than once.
I have a friend whose son decided to switch degrees, after spending two years in his program. I think it's great that he was able to change his career path before it was too late - before he had completed his degree, or invested several years in job that he didn't like. And self-exploration is great. If you can afford it. In my family's case, there's no wiggle room. With student loans and part-time jobs, my children need to make a straight path through university.
Switching degrees isn't necessarily a mistake. But it's an expensive decision.
Of course, it's always an option to do a general year before declaring a major and investing (or wasting) a year in any particular program. But that's still a year's worth of tuition, textbooks, and other student fees.
The most cost-effective way to tackle university: tons and tons of research. It might sound obvious, but knowing what you want - or don't want - could save you tens of thousands of dollars.
For some students, it might be as simple as acknowledging that they just aren't ready yet. They need to go out into the real world for a year or more before committing the time and money to a path in university that still isn't clear in their mind.
And for some, the road might never lead them back to school, and that's okay, too. As parents, we need to recognize the fact that for a lot of reasons, university isn't for everyone.
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