Hannah still lives at home. I’m fine with that at least until she would have otherwise graduated from college (2020). She’s anxious to get out on her own as soon as she can. I’m guessing by the end of summer (2017) she’ll have her own place.
She’s looking at really nice (and expensive) apartments. The range is anywhere from $800-$1200 per month. She wants 2 bedrooms. She pictures herself having an extra room for a studio. She doesn’t want a roommate.
I can feel you rolling your eyes already. You’re probably thinking how spoiled and unrealistic it is for a 19 year-old to spend so much on her first apartment. Shouldn’t she find the cheapest apartment or a roommate? Shouldn’t she learn what it feels like to struggle and live in a crap hole? Who does she think she is?
If that’s your reaction, it’s interesting that you don’t say the same about Hannah’s friends who spend almost as much for student housing even when they could commute. (Or choose a college close to home in order to save money by commuting).
Your brain comes up with all kinds of rationalizations that make the on-campus living expense acceptable and desirable over Hannah’s situation.
Let’s Compare for Fun
For this scenario, let’s assume that Hannah finds a 2 bedroom apartment for $1,000 plus some utilities (water and sewage is included in the rent but she’ll have to pay for gas/electric, internet and cable if she wants it and food).
Room and Board at local colleges range from $10K-12K or more. For the sake of this thought exercise, we’ll say $11,000. So, a little less than $1,000 per month. That includes meals. Except most parents complain that they have no choice about the meal plan or extra food allowance. Use it or lose it. So, I think that balances out. I know plenty of kids who never eat in the cafeteria so someone’s paying for their Chipolte-it usually ain’t the student.
“Rent” vs. “Room and Board”
- I won’t be paying Hannah’s rent or other expenses. Plus my household expenses will likely decrease when she’s out of the house (those 40 minute showers aren’t free).
Many parents pay for tuition plus room and board, drain their retirement funds or take out loans…for 4 years or more. Plus they still pay for their kids living expenses during summers and breaks for the entire 4 years.
2. Hannah won’t be borrowing money for her rent or other living expenses. By the time she rents a place, she’ll have an emergency fund saved up in case her expected income doesn’t cover her rent, utilities, food and car expenses. Hopefully, she won’t need it and still have $5,000-$10,000 saved.
Most students borrow to cover the cost of college including room and board. (Avg. debt in PA $37,000)
3. Hannah can choose where she lives, how much she wants to spend and who her roommates will be (if she wants/needs them).
Most students have limited choices about dorms and roommates. Good luck getting a single.
4. Hannah will learn how to budget and pay her own bills.
Most college students are oblivious to the costs associated with student housing. There’s no reason to budget except maybe for parties and pizza.
5. Hannah will learn over the course of the year whether the cost of the apartment is worth it to her. If she finds herself scrambling to pay rent or is stressed by her workload to maintain the lifestyle, she can always find a cheaper place, a roommate, more clients or try to raise her prices. That’s a lot of valuable experience. I could lecture her about all that but nothing beats learning by experience. She also might try Air B n B to supplement her rent expenses.
Some college students get an apartment near campus to save money on student housing but still borrow for it or their parents pay for it. Most students I know don’t write the checks for rent and utilities. I’m not criticizing, just saying they aren’t learning this skill.
6. Even if Hannah struggles to pay for her own place more than she expects, I think the thought of returning home will spur creative solutions to maintain her independence.
Most college students move back home after graduation. Many are forced to live with their parents even after they find work because student loan payments are so high.
I certainly don’t want Hannah to struggle with rent because she bites off more than she can chew but I’d rather she get a feel for it now. It’s best to make mistakes with money when you don’t have dependents or a 30-year mortgage.
I’ll worry less about Hannah’s safety if she lives in a nicer place (maybe that’s not rational). I’ll certainly miss her but am excited for her to take this step. I’m all for her trying different things while she’s young and isn’t burdened by a lot of financial responsibilities.
If she can manage to afford a beautiful apartment in a city that she loves and is close by, I’ll be happy for both of us!
