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How Friendship Can Save You Money

By WTOP Staff

Not many people would disagree that friends are good for the soul. After all, good friends can increase your sense of belonging, self-confidence and self-worth. Friends can also serve as a shoulder to cry on when you’re down or as cheerleaders to encourage you when things are going well. For most people, having friends is simply part of the human experience, and they serve as a reminder that we are not alone.

A study published last month in the Personality and Social Psychology Review takes that idea a step further by reporting that positive relationships play a larger role than once thought in our overall health and well-being. According to the authors of the study, friends can not only help people cope with stress and adversity, but can also serve as deterrents to unhealthy behaviors such as smoking or drinking.

When Friendship Becomes Profitable

All those perks sound great, but there are plenty of other ways that friendship can be good for you. In fact, having friends can often lead to financial benefits — whether it’s through pooling resources or plain ol’ positive reinforcement.

Yes, it’s true. Beyond being good for your overall mental health, there are plenty of ways that friendship can save you money. Here are a few:

1. Group rates. Saving money by being part of a group is the whole idea behind sites like Groupon. That’s because businesses are often willing to offer cheaper rates for groups of more than a few people. Next time you’re planning to visit an attraction, go on vacation or book an event, make sure to see if any group rates are available. Chances are, you and your friends can save a ton by banding together.

2. Bulk up. If you want to see just how much you and your friends can save, consider buying certain items in bulk. This could mean going in with several friends for a half of a cow from a local farm, shopping at your local Costco for items then divvying them up or taking advantage of sales that require a large purchase in order to save. Remember, almost everything costs less when purchased in bulk.

3. Trade around. One of the easiest ways to benefit financially from your friendships is to set up a system where a group of friends trade certain items instead of purchasing their own. This idea is known to work especially well with items that aren’t used frequently such as tools and books. Other items that work well include those for special occasions, such as folding tables, chairs or buffet tables for large parties.

4. Swap sitters. Every couple needs a date night from time to time, but hiring a baby sitter can be downright expensive. Instead of hiring the neighborhood baby sitter, consider setting up a baby-sitting exchange with neighbors, family or friends. Once you do, you can simply swap nights with another couple and take turns staying in with the kids and heading out on the town. With this strategy, everyone saves and everyone benefits.

5. Share kids’ clothes and toys. Having friends can be great on the pocketbook, especially if you have kids. That’s because kids grow out of clothes and toys frequently, which creates the perfect opportunity to swap things around. Chances are good that all the kids in your circle won’t wear the same size at the same time, so consider trading kids’ clothes and toys with whomever needs them most. You’ll not only save a ton, but you’ll also make your life easier by setting up a constant stream of items you no longer need to purchase.

As you can see, friendship can be a positive influence on much more than your attitude. Having friends can save you money in a lot of ways, and finding small ways to save can make a huge difference over the course of many months and years.

So remember, you don’t have to go at it alone. Start by asking friends and neighbors if they’re interested in cutting costs, and use the opportunity to brainstorm ideas that benefit everyone involved.

If you’re looking for ways to save, you might not need to look any further than your best friend.

More from U.S. News

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8 Purchases That Can Save You Hundreds or Thousands of Dollars

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How Friendship Can Save You Money originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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