Week #4: Money Matters

We’re excited to share these five tips with you this week, as well as the opportunity to earn a bit. Over on our Instagram page, we are running our very first contest! FirstGen5 is sharing two $20 Amazon digital gift cards with two lucky followers. For the full details, check out our latest post @firstgen_5.

As always, we hope you engage with this post by leaving a comment or sharing your feedback through our site. Just like the law school experience, everyone’s financial situation is unique. Consider these five tips in the context of your situation and if there is something we missed, let us know. The one thing we all know for sure is that money matters.

Here’s to going first,

Danielle and David

1. Take advantage of financial courses.

Since the beginning of our first semester, the law school offered access to financial courses providing guidance on how to budget, compare job offers, and plan for loan repayment. But, it wasn’t until Danielle’s brother introduced her to stocks and exchange-traded funds that she began to notice the emails in her inbox. Law school offers pockets of time to become more knowledgeable about tax strategies and financial goals, so put in the effort to learn now. You’ll thank yourself later. The more you are informed, the better decisions you’ll make earlier in life as opposed to ranting about financial regrets ten years from now.

2. Pay interest if you can.

We’ve all read it a million times while completing our financial aid documentation, so we get it . . . the money adds up. On many student loans, interest starts to accrue from the time the funds are disbursed. Even if you are not required to make payments while you are in school, interest will still accrue. Only take what you need and consider ways to lessen the blow. Are you willing to get a roommate for a year or two to save on rent? Are you able to skip purchasing the newest computer or phone to reduce your financial aid award? Think twice before you order that Peloton and consider limiting any expensive coffee habits. And don’t forget to ask if student discounts are available!

After taking into consideration your expenses and building an emergency fund (a financial safety net for any unexpected expenses, such as a flight, a flat tire, or a computer repair), decline or return any financial aid that you won’t need during the semester. Remember to factor winter break and the summer months into your equation. If you can reduce your financial aid, you’ll avoid the associated loan fees, which usually increases as you borrow more money. If you are expecting a few twists throughout your semester, leave yourself sufficient funds to prevent financial stress. You may have the option to return any excess funds before the semester ends (as long as you’re in compliance with your federal student loan agreement, which usually gives students more than three months to return financial aid without accruing interest).

3. Remember summer bills.

After their first year of law school, many students obtain a prestigious judicial internship, but the position is usually unpaid. There are diversity programs that include a stipend along with a judicial internship placement and there are opportunities to apply for scholarships for an unpaid internship, so continue to do your research to find these resources. Yes. There are paid summer positions that we hope you land after your first year, but it is better to prepare for plan B earlier rather than later.

Danielle is an extreme planner, so she came into law school with a game plan for the summer after her first year. She calculated her expenses for three months and saved half of the amount each semester, so she would at least have her essentials covered for the summer. David planned, too, but not for a global pandemic. Fortunately, David was able to secure a judicial internship with a stipend, but his plans to moonlight as a server were thwarted. Faced with a gap in his budget, David left no stone unturned, seeking out scholarship and grant dollars from his school and affiliated partners.

The stresses of law school are real, academically and financially. We want to underscore the importance of reaching out–especially during the summer months–if you find yourself in a position where you are unable to make ends meet. Many schools have food pantries and other resources to help you weather unanticipated storms. As Mr. Rogers reminds us, there are helpers everywhere.

There are other options. Many schools allow you to receive academic credit for an unpaid internship, so if you need the funds, you can take a course or two in the summer to receive financial aid. There may be a minimum credit hour to receive funds, so make sure you consult your financial aid office to make an informed decision. If you received a scholarship to attend law school, review your award package in case your university covers tuition and fees for summer enrollment.

4. Rent. Use. Repeat.

We both spent over $1,200 on books for first semester. We went to a local bookstore off campus and purchased mostly used books. Danielle asked about the return policy, held on to the books she needed for the first week of reading, and returned the books that she was able to find on various websites. A couple weeks into the semester, David and Danielle were talking before the start of class when Danielle dropped this tidbit. David has rented ever since and he uses a third-party application to search for and apply discount codes.

A trend that we’ve noticed: Textbook prices usually fluctuate near the beginning of each semester. You’ll want to note the prices of your textbook as soon as you know which courses you plan to take, so that you’re able to snag the textbook at the most affordable price (just make sure you know what the return policy is as there’s always a chance you will make last minute schedule changes). If you purchase your textbooks, consider holding onto your books to sell to next year’s law students, sell to your fellow 1Ls if you are swapping any of your courses, or sell to a local bookstore or online.

5. Scholarships

Although your statistics do not define your application and many schools use a holistic approach when reviewing applications, you may come out of law school with less debt by earning a merit-based scholarship with a high GPA or LSAT score. Also, the start of your law school journey does not mean that scholarship opportunities end. We’ve both utilized our winter and summer breaks to identify and apply to scholarship opportunities. Consider creating a spreadsheet to organize and track your applications and make sure to set goals to keep you motivated. When you land a scholarship, celebrate by making an interest payment!

That’s all for this week. Leave a comment with a tip or two you'd like to share. Remember to take advantage of our FirstGen5 contest on Instagram because money matters and we want to share a bit with you!

Our fifth and final post of Our First Five, Week #5: Exam Season, will be shared on Monday, February 1, 2021. Make sure to subscribe and follow us on social media (@firstgen_5).