The Best Way to Afford College: The Dave Ramsey Way

Dave Ramsey’s finance principles can help students get a head start on their financial journey and establish good money habits. Learn more about them here!

Have you ever heard of Dave Ramsey? He’s a finance personality, author, and host of his own radio program, The Ramsey Show. He also has a “Foundations in Personal Finance” course that millions of students take in high schools across the country. In this course, Ramsey speaks about Five Foundations:

  1. Save a $500 emergency fund
  2. Get out and stay out of debt
  3. Pay cash for your car
  4. Pay cash for college
  5. Build wealth and give

As you can see, some of these principles are great ways to get a head start on your financial journey and establish good money habits as a student. Let’s dive deeper into how they can help you as you figure out how to pay for college.

Get out and stay out of debt

Ramsey often advises people to cut up their credit cards and close their accounts for good. This mindset can also be applied toward student loans. Credit is only a temporary money solution; therefore, Ramsey would most likely advise you to chase after scholarships, grants, and other debt-free aid first and treat loans as a last resort. Indeed, it does take more work to apply and write essays for scholarship applications, but in the end, it's free money. Try thinking of applying to scholarships as a part-time job. For college students who already have loans, try working on paying them off bit by bit as soon as possible so you aren’t bogged down by high interest rates.

Related: How to Pay for College Without Paying for College

Budget for the present and the future

Budgeting is one of the best practices a financially smart individual can do. Budgeting under Ramsey’s solutions can be broken down into three categories: giving, saving, and spending. Every dollar needs to be given a name by breaking it down even further into smaller categories. Ramsey Solutions has created a budgeting app called EveryDollar that helps break down the information for you, but an old-fashioned paper or Excel budget works just as well. Students who start budgeting early in college have the advantage of being able to start saving for long-term goals like buying a house or paying for graduate school.

Prioritize affording college over going to reach schools

In this contemporary society that exalts Ivy League schools, consider your future career before thinking about which college to attend. (Remember, Ramsey wants you to pay cash for college!) College is one of the biggest purchases you will ever make; you don’t want to get a degree that doesn’t apply to your future career—plus, paying more for your college education does not guarantee you a job after graduation. Seriously thinking about your future may help guide you to which type of education and institution are best for you after high school. Starting at a community college can be a viable option for saving money before enrolling in a four-year institution. Again, going to a top university does not ensure that you will obtain a great job: experience, skills, and personality traits are all important parts of any employer’s hiring criteria.

Related: The Importance of Thinking Outside the Name-Brand College Box

If you’re still not convinced about these foundations, think about your goals in life and how much achieving them will cost. Ten years from now, do you want to regret making decisions that made you financially unstable? You can achieve financial peace in college and beyond with a little introspection and a lot of smart planning.

Looking for free cash to pay for college? Check out our Scholarship Search tool, our featured scholarships page, and the articles in our Financial Aid section!

Like what you’re reading?

Join the CollegeXpress community! Create a free account and we’ll notify you about new articles, scholarship deadlines, and more.

Join Now

Tags:

About Nicole Iwuala

Nicole Iwuala

Nicole Iwuala is a six-foot-tall high school student at Village Tech Schools in Duncanville, Texas. She’s an AP and dual-credit student who values hard work and independence. Not only is she a writer for CollegeXpress, but she also writes for her school’s yearbook and news website in addition to working as a math instructor. During her leisure time, Nicole loves to read literature, cook for her family, and study the Bible. Through her future-focused articles, she hopes to give students the knowledge and confidence to enter college like a champion.

 

Join our community of
over 5 million students!

CollegeXpress has everything you need to simplify your college search, get connected to schools, and find your perfect fit.

Join CollegeXpress
Jasmine

Jasmine

High School Class of 2021

CollegeXpress helped me find the school I am currently attending by consistently sending me emails of other schools. This allowed me to do research on other schools as well as the one I am in now!

Monica

Monica

High School Class of 2023

Being a sophomore in high school, I never really worried about college. I thought it wasn't important to worry about until senior year. Through this program opportunity I came across, I realized how important it is to start looking at colleges early and start planning ahead. CollegeXpress has opened my eyes to what colleges require, what colleges are near me, and what they offer. The daily emails I get from CollegeXpress really help me look at the different options I have and what colleges I fit into. Without this website, I would not be taking the time out of my day to worry about what my future will be nor what opportunities I have. I could not be more grateful for such an amazing and useful website. It's thanks to CollegeXpress that not only me but my family now know how much potential I have in to getting into these colleges/universities that we thought were out of my reach.

Mimi

Mimi

High School Class of 2022

CollegeXpress has provided me with tips that were for college students, but as a high school junior, they were still very useful. Not only that, it also gave me an idea of what to expect when it comes to going to college or already being in college. I want to say thank you to CollegeXpress, and I hope you continue the wonderful tips until I hopefully get into college and throughout my college journey.

Alexandra Adriano

Alexandra Adriano

$2,000 Community Service Scholarship Winner, 2016

I've used CollegeXpress quite a bit as a senior, particularly for colleges and scholarships, so it's been a very big asset in that respect! I would recommend it to anyone looking to pursue a college education, especially seniors! This scholarship will help me achieve my goals in ways I couldn't have before, and I know that there are opportunities like that for everyone on the website and in the magazines!

Chris Bell

Chris Bell

Bell College Consulting

The college lists on CollegeXpress are indispensable for sussing out creative additions to a student’s list, and the college-specific pages provide terrific commentary and suggestions for related schools. CollegeXpress is among the most trusted sources I use for information for my students.

College Matches
X

Colleges You May Be Interested In

Hiram College

Hiram, OH

Ohio University

Athens, OH

University of Montana

Missoula, MT