NEWBERRY — One of the biggest steps to financial security is learning the difference between a need and a want, according to Kentucky Higher Education Assistance Authority (KHEAA). Students who have learned that difference will find that their bank accounts grow more quickly.
Needs include clothes, food and, for many students, transportation.
With clothes, a want may mean wearing only designer items that cost more than clothes that last just as long and look just as good.
Students might want to eat a deluxe cheeseburger at a fast food restaurant every day, even though they can save money by making their own sandwich and brown-bagging it.
If a student needs a car to drive to and from school, a want would be a new sports convertible instead of a reliable, used car with good gas mileage and less flash. A student who lives in a city, however, might save more money by taking public transportation.
Each time students are faced with a purchase, they should ask themselves if they really need it or if they can get by with a less expensive item — or without it completely. They should save the money they don’t spend so it’s there when they really need something.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the Free Application for Federal Student Aid (FAFSA).
In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information about Advantage Education Loans, visit www.kheslc.com.