Eric Yaverbaum's son, a high school senior this year, has narrowed his choices down to two schools: one costs $60,000 a year and the other is $32,500 with grants.
Yaverbaum, who co-wrote a book on college admissions with his older daughter in 2010, wants his son to make an informed choice.
A post-graduation budget, based on expected earnings, is a good way to get grip on the impact of college finances. The first draft was unrealistic, so Yaverbaum helped his son drill deeper into potential expenses such as the percentage of income needed for rent, how much car his son could afford, and estimated monthly student loan payments.
"It hit home," Yaverbaum said. "I don't think the finances of college would have impacted him one iota if we hadn't gone through all of that."
More And More Spreadsheets
Having teens create spreadsheets to evaluate college costs is a common parenting tactic. Meg Clough, a mother of three in Belmont, Massachusetts, required her children to formulate a detailed analysis on an Excel spreadsheet -- from scratch, with no help from siblings. Her two older daughters both recently graduated from college and are gainfully employed. Her son just made his choice for next year.
"It took him five rounds to get all the details and get them correct," Clough said.
There was not a huge price differential between his top choices. Yet Clough's son kept forgetting items like travel and books, and he grossly underestimated his spending money needs at first.
Clough's son now plans to earn $3,500 over the summer with two jobs, as a waiter and a lifeguard.
"The 'aha moment' for him was when he realized what it all added up to," Clough said. Another revelation: you do not pay back only the loan amount, there is also interest that accumulates.