How Much Could You Save by Living at Home and Commuting to College?

Living in a college dorm can be a wonderful experience for some people. For others, it can be a disaster. Often, dorm living means cramped quarters, having to share a bathroom with 11 other people, and getting absolutely no privacy whatsoever.

Then there's the cost to consider. At public four-year colleges, students living on campus pay an average of $11,557 a year for room and board. At private colleges, they pay an average of $12,857 a year.

These aren't small amounts of money by any means. So you could save a bundle by living at home rather than living in a dorm. But you may also not save as much money as you expect to.

What will your costs look like at home?

For many people, living in a dorm means having their meals covered. When you live at home, someone needs to pay for your food. That someone may be your parents, but it's a cost to consider nonetheless.

You should also consider the cost of having a car when deciding whether to move into a dorm or live at home. Some colleges don't even allow freshmen students to have a car on campus. And even if it's allowed, you may not need one. And that can be a huge amount of savings.

Progressive says that in medium-cost states, auto insurance tends to average $100 per month. Your costs may be higher as a younger driver, and also, depending on where you live.

And also, you might have to cover auto loan payments on a car if your parents don't have one to lend you. So all told, while you might save money by skipping the dorm, your savings may not end up being as substantial as expected.

Look at the big picture

Let's say you're looking at a $12,000 tab to live in a college dorm for the upcoming academic year, and you're looking at $6,000 for that same timeframe when you factor in the cost of food, a car loan, and auto insurance. Clearly, you stand to save money by commuting from home.

But what you gain in the form of money in your savings account, you might lose out on in the form of the college experience. If the idea of living in a dorm room, bonding with roommates, and having easier access to your classes sounds appealing, then it may be worth it to shell out the extra money, even if it means spending more in the course of getting your degree.

But if you're not so keen on dorm living in the first place and you're looking to minimize your debt, then you may decide to live at home and commute instead. This might be an especially economical choice if you don't need a car to get to college because you have access to low-cost public transportation.

Ultimately, do know that the decision you make for your freshman year doesn't have to be set in stone. If you end up living at home and don't love it, you could always plan on moving into a dorm for your sophomore year and beyond.