When my friend enrolled into IIT as an electrical engineering major, she had her mind set to continue working at the convenience store. She believed that she would be able to juggle her course-load and her family commitment without too much sacrifice on her grades. Her parents were still pretty staunch about her help around the store as their proficiency in English was not high, they did not want to hire too many "outside" employees, and they only trusted family to work the cash register. For the first week, my friend was able to prioritize her time well and managed to keep on track with all of her coursework. However, when the course material started increasing in difficulty, she immediately felt the weight of her responsibilities, especially for her physics II and engineering project courses which took up a lot of her time. Eventually, after taking her first midterm, my friend decided to let her parents know that she will be putting in less time in at the store, certainly not daily work, and her parents finally decided to let her off. Her brother has taken over her work as the cashier ever since.
There were undoubtedly many costs associated with my friend's circumstance. For one, even to start the family business was a substantial investment on the part of her parents. Living in neighborhood where there were other convenience stores a block away, starting a convenience store can be very risky if you aren't knowledgeable of what suppliers to do business with, what contacts you should have for transportation of goods, or even an acceptable rent rate if you are leasing property for the store. Luckily my friend's family steadily began making a profit and, as of now, the store is still open. Another transaction cost that I elaborated on was my friend's cost of study time. Once she made the agreement to work at the store after her classes were finished, she was giving up time she could have spent studying over material or joining clubs. Yet another transaction cost, though unique to her, was forgoing pay that may have been higher than what she was being paid had she decided to work somewhere else. Sometimes, steep transaction costs are overlooked if the job means a lot to a person, even if the payoff is less.