Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 26, 1992 TAG: 9201250047
SECTION: BUSINESS PAGE: B1 EDITION: METRO
SOURCE: CURTIS RICHERT STAFF WRITER
DATELINE: LENGTH: Long
RECENT GRAD LEARNS HOW TO PAY HIS BILLS
Graduation last May was a big day. It was supposed to mark me not only an educated man, but also a financially independent one.When I walked across the outdoor stage at Roanoke College to pick up my diploma, I believed I already had accomplished great things and was prepared to handle whatever challenges were ahead.
But questions raised in the days after graduation were about things they don't teach in college:
\ A job Would I be able to find full-time employment? I had a part-time job while in college and now had to face the formidable task of looking for work - hopefully with benefits.
\ Medical insurance Where would it come from? Would I get a rider policy from my parents? Or would I have to pay for my own?
\ Car insurance What would happen? Could I afford my own policy? Would I have to give up the car and walk to work?
During the first couple years of college, I lived on campus. The summer after my sophomore year I calculated I could live cheaper off campus. Room and board in the fall of 1988 at the school would cost $3,350. I figured it would come to about $418.75 a month for eight months. I calculated that I could live off-campus for about $400 a month. So I decided to try my luck.
My parents and I figured out an allowance that would provide enough money for necessities while I attended classes. The allowance was to cover rent, food, utilities - the essential items.
It was not to pay recreational expenses - gas for the car, the occasional skiing, rental movies and such.
Getting an allowance would make me learn budgeting the hard way. By myself.
What I learned quickly was that rent was high, food was expensive and the Sunday paper was a good investment because it usually contained grocery coupons. Every chance I got, I bought canned foods in the event that I didn't have the money to pay for perishable foods.
Having a car in college was good and bad. The advantage was having the freedom to go where I needed when I needed, including a part-time job across town. But, the disadvantage was attracting friends who didn't have cars, but needed rides to Timbuktu. I had my family's old car, a Volkswagen Rabbit. Its fuel economy saved me a bundle; besides, it was reliable and able to carry a lot of baggage. It was especially helpful at the end of each school year when trying to stuff as much as possible into a car.
My car costs were cheap, but after I graduated I had to apply for my own insurance policy. Being a single male under 25 is not the best spot to be in when applying for auto insurance. The cost would go up about 5 percent. But insurance rates usually go down at age 25 and I expect an approximate 20 percent decrease from the cost of my current policy.
Over the last three years of college, the financial arrangement with my parents changed slightly - I worked more and reduced the allowance. Room and board costs at school increased by $250 a year, so living off-campus did save money.
Also, the weaning was a good experience. It made me understand that money was something I could not be without. As the allowance shrank, my share of the burden increased. Budgeting became a part of my life.
By budgeting my money each month, I was able to put a little away and save for unforeseeable problems. But with only a part-time job after graduation, money would be tight and I worried how I would be able to afford medical insurance on my own. I had heard that personal policies could cost $500 or more a month.
As it turned out, the full-time job the newspaper offered me relieved a lot of problems. The job provided medical benefits as well as retirement and investment plans. Now I could buy into the company's health insurance program. The difference I saved going with the company policy allowed me to start saving for my future.
The one decision I made that I will always be thankful for is that I had a job before I graduated. I had established a small foothold in a company and had a way to pay some of my more important bills while figuring out how I was going to afford both car and medical insurance.
Also, I'm lucky that my parents had planned for my college education, saving enough so I didn't have to apply for loans. While grants reduced the amount I had to pay, I didn't have to worry about repaying a loan.
A lot of kids get cars or a great trip when they graduate. I got my education. While that may not seem as exciting, I was able to start out from college without a great financial burden.
In my last year of college I heard a saying that will stick in my mind forever: "I have an education from college, now it is time for me to learn." I wasn't sure who said that, but for me, it summarized everything I had experienced in the few months after graduation. While college is a good thing, it is only the first step toward living your life and dealing with every day's problems.