There is no shortage of financial concerns for parents around raising children, but few are as daunting as planning to one day pay for college.
Personal finance coach Dave Ramsey is a major advocate for staying out of debt, so he advises against taking out student loans.
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For parents that are able, setting up a tax-advantaged 529 college saving plan is one way to pay for future education-related expenses.
Scholarships are also available for students who excel in certain areas of study. Grants and work-study programs are options for others, and are often need-based.
Many college students are confronted with the need to work long hours and attend college at the same time.
One student recently contacted Ramsey to talk about this precise reality as it relates to his current situation.
"I'm in college full-time right now, and my parents have been generous enough to pay for some of my school expenses," wrote the student, identifying himself as Will, in an email sent to TheStreet from Ramsey Solutions. "In addition, they let me live at home while I complete my degree."
"I work some nights and most weekends so I can go to school debt-free, but I'm trying to figure out how to move out on my own and continue working, while remaining a full-time student and attending career-related campus events," he added. "The cost of living is high in our area, so I'm having trouble figuring out how to make it all work. Do you have some advice?"
Ramsey offers his thoughts on college finances and working a job
Ramsey responded by congratulating the student on his drive and for what he has accomplished so far.
"I'm glad you're working hard in school with an eye toward the future," Ramsey wrote. "First off, out of the three considerations you mentioned — school, work, and cost of living — I think you need to decide which is your number one priority. If I were in your shoes, school would come first."
Ramsey discussed the student's goal of staying out of debt while pursuing his college degree.
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"Now, to go to school without borrowing money, you're going to have to keep working," he wrote. "But finishing school on time, while attending some of the extracurricular events that will move you toward your career, might pre-empt work."
"You'll have to work enough to pay for things, but if you can finish school and hit your academic and graduation goals while staying at home just a little bit longer? That sounds like a winner to me," Ramsey continued. "It's a pretty nice deal your parents are offering, but I can understand your desire to be out on your own, too."
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Ramsey explains the importance of prioritizing academics
The Ramsey Show host said he understands the student's desire to be out on his own, but suggested he take a look at the financial reality of his current opportunity.
"I want you to be out on your own as soon as you can, as well," Ramsey wrote. "But if you do that right now, you're going to have extra bills and be forced to work even more. That's going to throw your entire school process out of whack."
"Guess what your number one priority was in that scenario?" he asked. "Right, moving out. If it's the tail that's wagging the dog, it has become the number one priority. If it's disrupting work, and thereby disrupting your academics, then in my mind you've put your focus on the wrong thing."
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Ramsey wrapped up his words for Will by explaining his very simple thoughts on handling this situation.
"Your number one goal should be finishing school on time, while attending as many connected events as possible," Ramsey wrote. "Meanwhile, keep working enough so that you're able to continue doing all this debt-free."
"If that means you're staying at home a little bit longer to pull it off, I'd do it!"
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