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Category: Finance

  • How to Survive Without A Salary

    How to Survive Without A Salary

    Today my grandmother gave me a thick antiquated book entitled “How to Survive Without a Salary”, by Charles Long, circa 1981. The truth is that I’m employed, as a writer and a barista at a coffee shop. My grandmother is aware of both those facts. So I do in fact earn summer salaries, but with her infinite wisdom my loving old granny felt the need to bestow the book upon me nonetheless. With a career as a student and jobs that pivot around an education’s schedule, it’s pretty much impossible to predict long term income or complete financial stability anyway. My grandmother knows that despite the state of a person’s finances, tips on how to adopt what Long calls the “conserver lifestyle” are always good to consider.

    So let’s consider them. Long defines the term conserver lifestyle as “a means of coping better with what (one) already has.” Chapter one of his novel deals with internal factors preventing you from finding success in that regard. For interest’s sake, let’s pretend we don’t have any of those. But chapter two is ‘Assessing Yourself: Making a Budget,’ which is definitely worth a look. You never want to be spending more than your wallet can handle, especially when, as students, there are some costs that can’t be evaded.

    According to Statistics Canada, Canadian student tuition fees alone averaged at $5,777 in 2008-09, with Quebec’s $2,488 average the lowest and Ontario the highest, at $8,797. But there are also “ancillary fees,” those compulsory extra charges over and above tuition to cover things like athletic programs, health services and student associations. These fees added an average of $695 more to the demands on a full-time Canadian undergrad in 2008-09, ranging from a low of $423 in New Brunswick to a high of $827 in Nova Scotia. Ancillary fees are usually unregulated, but you can often look into them on school websites and find opportunities to opt out of what you don’t need.

    We can all survive without a salary while we are students if we keep watch on costs and budget ourselves accordingly. Long claims that “costs are always more important than earnings…there is nearly always more advantage in reducing costs than in increasing earnings.”

    In order to be able to sustain yourself while you get an education with an unstable salary and all of these subsidiary costs to student life, several banks like RBC and TD Canada Trust have places for you to create your own budget lists on their websites. At the time the book was written, without widespread use of the Internet it was a bit tougher to budget, but today many student budget list templates can be found online as well. The Office of the Superintendent of Bankruptcy Canada’s student budget section is a good resource, at http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01399.html.

    After the section on budgeting, Long gives eleven more chapters of detailed analyses on financial strategies, many of them useful. He says, “A penny saved is not a penny earned. A penny saved is a hell of a lot more than a penny earned today.” We know that simply by keeping our savings in the bank, they grow with interest. That can apply to scholarship money or bursaries that may be extractable for personal holding (OSAP, for example).

    Chapter six on ‘The Second-Hand Market’ is my personal favourite, advocating the benefits of getting everything and anything used or pre-owned. Shopping in thrift stores doesn’t only help your wallet, but choosing to reuse can help our planet too.

    I’m glad to have been given this book, and prepared to become more money-conscious. With sky high tuition costs and the absence of established careers at this point in our lives, it’s smart to consider advice from anyone, outdated or otherwise, especially a published professional. And where did my grandmother find this yellowing treasure? At Value Village, naturally.

  • Scholarships for Aboriginal Canadians

    Scholarships for Aboriginal Canadians

    Bursaries and Scholarships
    The Aboriginal Financial Officers Association of Canada is dedicated to helping Aboriginals reach the highest standard of excellence in finance and management. AFOA’s initiatives in the development of Awards and Scholarships are examples of that commitment.

    See link below for scholarships and bursaries.
    http://www.metisnation.org/programs/education–training/education/bursaries–scholarships

  • December Scholarships of the Month – Apply Now!

    December Scholarships of the Month – Apply Now!

    With December upon us and exams in full-swing, the last thing on your mind might be how you’ll fund your post-secondary education next year. As you settle in for your holiday break in a few weeks, take some time to check out the scholarships we have sourced for you this month. Getting your applications in now can help grab that free money that you otherwise would not have. Take a look at the application criteria for each scholarship – you may be only a few clicks of your mouse away from getting help with your post-secondary tuition!

    1. Equals6 Top-Talent Scholarship – Open to all students across Canada attending high school full-time. Amount: $250. Deadline: December 31, 2013.

    2. Industrial Undergraduate Student Research Awards (I-USRA) – Open to students registered in a university bachelor’s degree program in natural sciences or engineering. Amount: $6500. Deadline: February 28, 2014.

    3. Simplycast Jutla Scholarship – Open to all students across Canada entering any field of study. Amount: $450. Deadline: February 28, 2014.

    4. Simplycast Scobey Scholarship – Open to all students across Canada entering any field of study. Amount: $450. Deadline: February 28, 2014.

    5. From Failure to Promise Essay Contest – Open to all students across Canada who write a 1000 word essay on a specific topic. Amount: $500 – $1500. Deadline: July 31, 2014.

    6. Canadian Society for the Study of Religion Undergraduate Student Essay Contest – Open to all students enrolled in undergraduate studies at a Canadian university or college who write a 2500 word essay on a specific topic. Amount: $100 – $300. Deadline: April 18, 2014.

    7. Fraser Institute Student Essay Contest – Open to all students enrolled in high school or an undergraduate studies program across Canada who write a 1000 word essay on a specific topic. Amount: $500 – $1500. Deadline: May 30, 2014.

    8. Terry Fox Humanitarian Award – Open to all students across Canada who demonstrate community service and volunteerism. Amount: 20 awards worth $7000. Deadline: February 1, 2014.

  • Money Management

    Money Management

    If you are anything like me, you will often find yourself thinking, “Just one more small purchase won’t matter.” And if you’re even more like me, you will soon realize that maybe that small purchase did matter when you discover that your bank account is now empty. It would be silly to think that one small coffee made you broke, but when you figure out that maybe having one every day is a little excessive, you have the first step toward money management down: awareness.

    Take stock of your funds. Figure out how much you will earn each month, and write it down. Next, find a little notebook and start keeping track of everything you buy. Write down where you bought it, on which date, and how much you spent. This serves the purpose of telling you where all the money goes. It might even serve the extra purpose of telling you that you have a caffeine addiction, and maybe you should cut back a little. Starbucks four days in a row, five dollars each time? There are twenty dollars, gone. Kind of scary, isn’t it?

    Keep that spending diary for three months so that you can get a good idea for the average you spend on each kind of purchase. Doing so will then assist you to start making changes in your lifestyle: this is where you have to start limiting yourself and have self-control.

    Trust me; I know it is not easy to break a spending habit. When you do something so often that it becomes routine, breaking that routine throws off the rest of your day. That being said, it is now time to break out a coloured pen or highlighter. Circle or highlight every habitual purchase you made in the last three months, and calculate the total cost. Then think of how many hours it took to earn that money. A little sobering, right? Once you realize that your time equals money, it becomes a lot easier to make good decisions regarding your spending.

    Now that you have figured out what you can cut back on, it is time to make a budget. Figure out the main categories your purchases fall under. For some, those might be their cell phone bill, car payments and gas, entertainment such as movies, music, and video games, going out to eat, savings, and so on. Certain bills will always remain the same, such as car payments and your cell phone bill. Some put 10% of their entire paycheque into a savings account which they do not use under any circumstances. With everything else, though, allocate a certain percentage of your remaining funds to each category.

    For example: let’s say that you make $750 per month. 10% of that is $75 which goes into your savings. Your car insurance payment costs $100, so now you have $575. Your cell phone bill costs $50, and the remainder is $525. Now you can assign a percent to everything else. You may calculate it so that you have extra money left over for emergencies or unexpected nights out. As long as you never go over your allotted limits for each category, then you won’t find yourself with an unexpectedly empty bank account again.

  • Comparing Tuition Fees in Canadian Schools

    Comparing Tuition Fees in Canadian Schools

    When children are young, their parents sometimes begin to set aside money for different purposes. Sometimes they start special bank accounts so that their sons or daughters will have some money to spend when they get a bit older. They might also start an education fund to start to save money for a university or college program in the future. Why would they do that? They know that post-high school education can be expensive, but saving money for their children can help make it possible to continue studying. When the time comes to choose a post-secondary school, students can also help by comparing costs and seeing where they can get the best value for their tuition money.

    Tuition refers to the fees students pay for being able to go to classes and to earn degrees, diplomas, or certificates. Normally, the cost of books and other supplies are not included in the tuition, which covers salaries, maintaining the buildings, and other basic costs. Tuition fees have been rising quickly almost everywhere in Canada, much faster than the cost of food, clothes, and other daily needs. In some places, the fees have almost doubled in the past five years, and in other places, they are almost four times as much as they were. One exception is the province of Newfoundland and Labrador, where tuition has been kept at the same level as it was in 2004. Ontario generally has the highest tuition fees, followed by Saskatchewan. Quebec and Newfoundland and Labrador generally have the lowest fees.

    Even within each province, tuition fees can vary a lot. In Saskatchewan, for example, there is only about a $200 difference in tuition between the most and least expensive university tuitions. In British Columbia, however, the most expensive university costs seven times as much as the lowest-priced. This difference can add up to a large amount of money for a four-year program, which could cost almost $55,000 by 2023. Unless students can live rent-free with their parents, they also have the expenses of rent, food, and other necessities of life. This can add up to a lot of money. Cost is an important factor in choosing your program after high school, but it is only one part of the decision.

    When the time comes for you to choose a post-secondary program, money should not be your only consideration. Sometimes, the best programs with the most support for job searching are also the most expensive. An expensive institution might also offer extra benefits, such as music or sports programs, volunteer opportunities, or a selection of courses not offered elsewhere. If these benefits are important to you, a high-priced school can be a good option. If not, a lower-cost program might be best. Beside these factors, being close to family or friends, being in a big city or small town, or other personal considerations should influence your decision. If you research your options well, you can find a program that combines good economic value with a useful education for your future.

  • Scholarships and Bursaries for Aboriginal Canadians

    Scholarships and Bursaries for Aboriginal Canadians

    Bursaries and Scholarships
    The Aboriginal Financial Officers Association of Canada is dedicated to helping Aboriginals reach the highest standard of excellence in finance and management. AFOA’s initiatives in the development of Awards and Scholarships are examples of that commitment.

    See link below for scholarships and bursaries.
    http://www.metisnation.org/programs/education–training/education/bursaries–scholarships

  • The Dangers of Student Credit Cards

    The Dangers of Student Credit Cards

    For many young people, the temptation of their first credit card is too much to resist. That is why credit card companies will often set up booths on college and university campuses across Canada to tempt you with free gifts and low interest rates for signing up with them. While credit cards can be an excellent way to build your credit rating, the responsibility that comes with owning one cannot be overlooked.

    When I first entered college, I saw a booth on campus advertising free NHL hockey blankets for signing up. Not only that, but acceptance was virtually guaranteed. For someone fresh out of high school, a credit card makes you feel important and like an adult. Being able to use it whenever you want to buy clothes, electronics, make-up and more is a thrill. The thrill will soon wear off when you realize that you have used up most of your credit limit in only a few months and have no way to pay it off.

    Credit cards should not be taken lightly. While the company may advertise an interest rate of 1.99%, this is often only an introductory offer and the rate will skyrocket to 18% or higher after your first month. This means, on a $100 purchase, you will be paying $18 in interest directly to the credit card company. Over several months of not paying off your balance in full, this quickly adds up. Soon you will owe hundreds of dollars that you didn’t even spend!

    If you do decide to sign up for a credit card, there are several things you can do to reduce the temptation of overspending. The first, and most important, is to make sure you have the funds needed to pay off your balance before you even use your credit card. Paying off your balance in full each month is an excellent way to build a credit rating, as you are showing the bank that you are responsible and have a steady income. The second is to leave your credit card at home and do not carry it with you in your wallet. This tactic helps to eliminate the temptation of overspending and using the card for purchases you do not need.

    Of course, there is always online shopping. Online shopping should only be done when absolutely necessary (for Christmas gifts, for example). It is also advisable to get a credit card with a low credit limit – $1000 should be your absolute maximum. Anything higher and you run the risk of using it frivolously.

    Credit cards can be an excellent tool for building your credit rating and establishing yourself, if used responsibly. If you decide to sign up for a credit card, ensure you take the steps outlined above to reduce overspending and, ultimately, reduce your stress level. After all, who needs extra stress during exams?

  • Graduate Scholarships

    Graduate Scholarships

    If you are considering the possibility of graduate school, one of the most daunting factors for you to consider could be how you will pay for it. Don’t worry! There are many scholarships available to students pursuing everything from engineering to the arts. Some of the financial aid your school offers is competitive and based on performance, and others are based on applicant needs. While the types of support offered varies by university, I use Laurentian University in Barrie and Sudbury Ontario as an example of some of the types of support offered for this article. For accurate descriptions of the types of support offered, please view your school’s website. Graduate students can apply for graduate teaching assistantships or research assistantships, summer fellowships, scholarships and bursaries (based on merit and need) and OSAP (based on need).

    Teaching assistantships or research assistantships are valued at $7,350 for Masters students and $12,075 for PhD students and are opportunities that full time students registered in the first two years of their masters program or in the first 4 years of their graduate degree can take advantage of. These can be in the form of 10 hr/week teaching positions in the University or fellowships (“A temporary position at an academic institution with limited teaching duties and ample time for research” (Wiktionary, 2013)). Summer fellowships are valued at $1000 and gives graduate students the opportunity to work full-time on their research during the summer. Research assistantantships are available in select cases and based on availability of faculty to support graduate students wishing to pursue this option. The criteria for receiving scholarships and bursaries varies by school, so check your school’s graduate studies program website for further details on the scholarships and their respective deadlines. Typically, these supports are available to applicants in their first and second year of their program who are enrolled into full time studies and are Canadian residents. OSAP (Ontario Student Assistance Program) is designed to help students who are in financial need. Interested students may view eligibility criteria and apply through the website at www.osap.com.

    If the next step on your career path requires you to pursue graduate education and you’re broke, never fear! There are many options suited for students in different situations. Keep your head up and take a look at your graduate studies website for more information on what is best suited for you!

  • November Scholarships – Apply Now!

    November Scholarships – Apply Now!

    It’s November, so we know what you’re thinking about – getting through exams and counting down the days to when you will be on holidays come December. If you’re planning on starting post-secondary education next fall, thinking about scholarships is something you need to pencil in, too! Many scholarships are accepting applications NOW. Get yours in while everyone else is concentrating on Christmas vacation and you’ll have an even better shot at scoring that free money!

    1. Canadian Society for the Study of Religion Undergraduate Student Essay Contest – Open to all students enrolled in an undergraduate program at any school. Amount: $250. Deadline: April 18, 2014.

    2. Burger King Scholars Awards – Open to all students across Canada who are employed by Burger King or who are children of Burger King employees. Amount: Up to $50,000. Deadline: January 10, 2014.

    3. Terry Fox Humanitarian Award – Open to all students across Canada who demonstrate voluntary humanitarian work. Amount: $7000. Deadline: February 1, 2014.

    4. Dalton Camp Award – Open to all students across Canada. Amount: $10,000. Deadline: November 15, 2013.

    5. TD Scholarships for Community Leadership – Open to all students across Canada. 20 awards available! Amount: Up to $70,000 over 4 years. Deadline: December 6, 2013.

    6. RBC Students Leading Change Scholarship for Undergraduates – Open to all students across Canada entering post-secondary education on 2014. Amount: Varies. Deadline: Applications available November 1, 2013 – deadline TBD.

    7. Horatio Alger Canada Scholarship Program – Open to students in Quebec, Ontario, BC or Alberta. Amount: $5000. Deadline: December 1, 2013.

  • Your Credit Rating Begins Now

    Your Credit Rating Begins Now

    You begin to establish credit the day you get your first credit card, apply for a student loan, or sign a contractual cell phone plan. How you handle the credit afforded to you has a direct impact on the products and rates offered to you for years to come.

    What is a credit rating?
    Your credit rating is a measure of responsibility. It demonstrates to banks and other lending institutions that you’re consistently able to pay your minimum balance on time. Your credit score represents a track record, and where you’re at now.

    The strength of your credit history is what determines if you qualify a credit card, a loan, or a mortgage, and can affect the interest rate you’re offered. If your credit rating is low, you will be deemed high risk, and the interest rate will be much higher, if you’re even offered credit.

    How do I establish credit?
    For new or young borrowers, this can be challenging, if you don’t have any credit history.

    Some lenders will allow someone with an established credit history, such as a parent or guardian, to co-sign a credit application with you. Though remember, this means that both parties are responsible for timely repayment. If your mother co-signs your credit card application, and you fail to pay, this will negatively impact both credit scores.

    Most credit cards are unsecured, meaning you haven’t put down a deposit or secured it against property. However, if you don’t have any credit history, you can look into getting a secure another option is to apply for a secured credit card, where you have collateral backing up the line of credit. Often this is a deposit, which will be returned to you when you cancel the card. Some secured cards carry higher interest rates and have fees associated with them.

    What affects your credit rating?
    Consistently paying down credit on time, at least the minimum balance or more, builds or maintains your credit rating. Each late, missed, or incomplete payment negatively affects your score. Regularly miss or make late or incomplete payments, and this could negatively affect your credit score for years.

    Your credit score is also based on the length of time you’ve maintained a credit account with a lender, and how long that account has been in good standing.

    Credit reports only track funds that you’ve borrowed. They don’t include information about whether you pay your bills or rent on time.

    How do I maintain good credit?
    Always pay your minimum monthly balance on time. Better still, pay more than your minimum balance, and pay it early, as it can take a few days for transactions to clear.

    Each time you apply for credit, it shows up on your credit history. Requesting too much credit in a short period of time can lower your score.

    Request a credit history from Equifax or TransUnion annually, and review the report. If you find incorrect information, contact Equifax or TransUnion immediately so they can begin the dispute resolution process.