How to Save $1,000 on Your Kid's College Costs

You don’t have to be an economics major to understand how the recession is weighing on retailers and consumers. Just try sending a kid to college.

With about a month left until most colleges reopen for the fall 2009 semester, retailers are beefing up their sales and promotions for all of the tools, housewares and decorations that have become part of modern college life.

That leaves students and their families in the driver’s seat when it comes to snagging deals. They have never been short on motivation.

In addition to paying for tuition and room and board -- which at public universities average $14,333 for in-state students and $25,200 for out-of-state students, or $34,132 at private universities, according to 2008-09 data from the College Board -- students incur additional expenses once they enter campus for items including textbooks, laptops (or netbooks) and dorm room appliances.

According to the National Retail Federation’s (NRF) 2009 back-to-college survey, college students and their parents are expected to spend an average of $618.12 this year, up 3% over last year’s $599.38. Eighty-three percent of parents with students already in or planning to attend college say that the economy is impacting their back-to-college plans, and 48% of them say the economy will cause them to spend less, according to the survey.

The survey also found that families of freshmen will continue to spend the most on back-to-college purchases, on average $820.77, largely because of computer purchases and dorm furnishings.

Saving money on back-to-college purchases is top priority this year for most families, says Jeff Green, the president of a retail consultancy based in Mill Valley, Calif. One of the easiest ways to save, especially for freshmen who have the most expenses, is to compare prices in stores and online, he says.

In the interest of cutting back, we’ve pinpointed some of the biggest expenses (after tuition and room and board) that freshmen students incur once they move on campus. Our list incorporates data from the NRF survey and advice from retail analyst Green and Mike Gatti, the executive director at the Retail Advertising and Marketing Association, a trade group that studies pricing and consumer behavior. (Students who live at home and commute won’t incur many of these expenses.)

Although the savings presented below are derived from local examples, they are indicative of common pricing patterns throughout the country. Crunching these numbers offers a rough estimate for how much a typical American family might save by shopping around.