Category: Finance

A lot of people are fortunate enough to say that family is something that they can rely on. Family can be and often is a huge part of a student’s financial support. Student loan and financial aid services look at family income when determining how much a student receives. Oftentimes, any other expenses that aren’t covered by financial aid services are most likely taken care of by a student’s parents or guardians.

It’s safe to say that when you’re young, and especially when you’re young and pursuing a post-secondary education, it’s almost a given that you’ll be relying on family to help out with your finances. But what if you have no support from family? What can you do if you’re in the unfortunate situation in which you cannot financially depend on your family?

Take Stock

Before making any important decisions, first consider your situation and what might be the best option. If you want to pursue a post-secondary education, there are a lot of factors to consider. Should you go to college or university? Maybe an online education would be better? Should you study nearby or farther away? Should you go to school now or should you work and save up money? Or should you go to school and work at the same time? Should you study full-time or part-time? Every situation is different, so what’s the right choice for someone else may not be the right choice for you. Try to choose the most realistic and viable option that does not completely compromise what you want.

Some Obvious Difficulties

It can be challenging to convince financial aid services that you’re not receiving any financial support from your family. Unfortunately, it’s common to be unable to get the exact amount of financial aid that you need. Sometimes, applying for scholarships, bursaries and loans is all you can do to get some extra outside help. There are plenty of scholarships and bursaries that are based on merit alone and not your family’s income. Doing research on what rewards and scholarships you could qualify for will be extremely beneficial in this situation. Afterwards, a day-to-day challenge will be minimizing spending outside of necessary expenses like food, transportation or rent.

Some Tips

If it’s possible, walk more to reduce the amount spent on transportation. There are often food banks, religious clubs, and groups near college and university campuses that provide free meals to those who need them, no questions asked. Not to mention, school events that give away free toiletries, snacks or even groceries. It’s hard to save money on necessities like rent, but other expenses can be decreased as long as you’re willing.

Regardless, keeping up with your studies on top of having to worry about your own financial situation is a lot to have on your plate. It’s easy to feel overwhelmed by it all. Thus, it’s important to focus on one thing at a time. If you have friends who understand your situation, it’s never a bad idea to ask for help when you need it. This doesn’t necessarily mean borrowing money from friends. But, getting emotional support and socializing is important. It’s a difficult situation to be in but it does not always have to be.

Really, the best way to improve your financial situation is to survive it until better options become available to you, whether that is a better-paying job or a substantial amount of financial aid. Ultimately, not depending on family for money is one of the first steps towards independence as an adult. It’s a responsibility that most of us will have to take on. Eventually, it becomes easier to manage.

The end of high school is nigh. Beyond the horizon lie opportunities, challenges, and the great unknown. You, on the other hand, are freaking out. You might wonder if you will make enough money while in college or university, if you will be ready for the work world, or how to even start when you still feel like a kid. It is scary, but it is a fright that many people face. There are steps you can take to start thinking of your savings goals now in order to make them happen in the future.

First of all, get thinking! Take an honest look at your current situation. Are you entering the post-secondary world carrying the weight of student loans? Will you be living on campus? Are your parents assisting you in any way? Make a list of all your expenses and calculate how much you will be spending each month. It is important to know the terms of your student loans, how much you have to pay, and for how long. When you have a clear understanding of your financial situation at the moment, it makes it much easier to create realistic and helpful savings goals.

Get banking! If you do not have a chequing and savings account with a bank, register straightaway. Look into online banks, such as Simplii Financial and Tangerine, that offer no-fee accounts and higher interest rates for savings accounts than traditional brick-and-mortar institutions. This way, you are keeping track of your money and taking the first steps with a simple but effective savings method. Getting a no-fee credit card is another crucial step. Yes, the woes of credit card debt are well-known and have many articles written about them. However, using a credit card now will allow you to build a strong credit rating that will help you with future milestones, such as being approved for a mortgage for your first home. By banking and using a credit card, you can keep track of your funds electronically and work towards your goals.

Get working! College and university will keep you busy, but the flexibility of class hours will allow you the flexibility to find part-time work. Even if you are supported by your parents or do not need the money, getting a job will build your experience, get you into the habit of saving part of your income every month, and help you decide the career path you want to traverse. The more experience you have handling income and expenses, the clearer your savings goals will be. You will have a better understanding of how much you should put away for the future, and how much you can spend now on things you want, including vacations and other adventures. Although not saving is problematic, saving without living is even worse.

Finally, think ahead! Talk to financial advisors, family, and friends to get a sense of what budgeting and saving will look like after you are done school. Consider the sort of work you will be looking to do, where you want to live, and the type of life you imagine for yourself. Do you want to buy a car or a house? At what age would you like to retire, if ever? It may seem daunting or impossible to truly answer all these questions. Starting early is the best way to get it right.

Sources:

Passy, Charles. “7 money moves smart graduates make in their first year after college.” MarketWatch. https://www.marketwatch.com/story/the-first-year-after-college-7-tips-for-a-better-life-2015-05-20