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  • Saving Money for School

    Saving Money for School

    When it comes to saving money in high school or university, there are a lot of students out there who don’t know where to start. I’ve known friends of mine whose parents didn’t want them working in high school to avoid splitting their focus, which led to them not knowing how to budget later in life. I, myself, had a job in high school and in university but I was never good with saving money. Now, into my final year of university, I’m painfully aware of how much money I owe back to the government, and how little of that amount I actually have saved. However, there are ways to get better at budgeting and saving money…

    First thing’s first: you need to ask people for help. It’s like anything – if you don’t know how to do something, swallow your pride and ask someone for help. This is your future after all. Many universities have workshops on how to save money and how to properly budget for your future. Parents, friends, or even professors would be able to help you with figuring out how to ensure that balance stays in the green.

    I also know that being on campus is pretty tempting when cafeteria food calls your name. It may not be very good but it’s there, you’re hungry, and you’re too busy in the mornings to pack food. Well, it’s time to make some sacrifices. Wake up a little early and pack a lunch for the day. You can even make it the day before or pack leftovers from dinner. Same goes for other expenses while in school; textbooks, even if a newer version is required, can always be bought from someone else or another site that may have it for a much cheaper price- EBay is great.

    Now, I know you may be thinking that this advice is good for those who live at home and who can actually budget. But, what about those living in residence or on their own? Well, for you guys there are lots of external resources to help you with your work. Mymoneycoach.ca offers tips on how to save, where to make cuts, and gives realistic advice on how to properly save funds. For example, they’re quoted as saying:

    “One of the best saving strategies is to pay yourself, first. What this means is that you designate a certain amount of your paycheque as your pay and you pay that money to yourself before you pay your bills or anyone else. […] It can be any amount that you decide. The important part is that you pay yourself first rather than last. Most people pay all of the bills first and then save anything that might be left over. For most people, that method of saving doesn’t really work because nothing is left over to save.”

    The most important thing is that you need to be willing to save and make sacrifices because this is your future and it’s better to be good at these things now.

  • The Importance of Financial Literacy- Knowledge is Power!

    The Importance of Financial Literacy- Knowledge is Power!

    What is Financial Literacy?

    Financial literacy is a term describing how much a person understands about the way money works – both personal finances, and larger things such as investments and economics.

    Though it sounds like a lot to know, it breaks down to understanding three things:

    • How to earn money and where your money comes from
    • How to keep a budget to manage your spending
    • Knowing how savings and investments work

    Being financially literate means you can make smart, informed decisions regarding how you manage and use your financial resources.

    But I’m Just a Student! Why is This Important to Me?

    If you’re thinking, “This is the first time I’ve heard that financial literacy is important!”, you’re not alone.

    Many teens and young adults do not receive much information or education about finances from school or family.  All too often, financial literacy is not taught in school, which means that when you get to college, university or your first adult job, you’re simply unprepared for the financial responsibilities facing you.

    Even students in high school and university/college, as well as those young adults who go straight into an apprenticeship or the working world, will encounter significant financial decisions.

    You may be juggling student loans through OSAP and other student aid.  Or, you might be learning to balance your spending against your paycheque.  Maybe you’re even renting your first apartment or buying your first car.

    Knowing how to manage your personal finances for these adult responsibilities will ensure that you don’t get caught in any financial pitfalls:

    • Unmanageable Debt: Probably the most common among students and young adults. Credit cards, student loans and lines of credit are easily available.  However, without understanding how interest accumulates, or how payment plans work, what begins as just a little debt can quickly become overwhelming.
    • Impulse Spending and Unnecessary Purchases: We all want to buy the latest game, eat out and party with friends, or take a trip when you get that paycheque or loan deposit. And, a little bit of this is just fine!  Getting into the habit of spending without keeping track of where your money goes, however, can mean you end up not able to pay for the important things such as rent or groceries.
    • Not Investing for Retirement: First off, you should be doing this! Yet without at least basic understanding of the principles of saving and investing, you might not realize just how vital this can be to your future.

    Educate Yourself!

    It’s true that many schools don’t teach financial literacy.  But don’t let that stop you!  Many schools, both high school and at college or university, have guidance departments and student services that can provide you with resources to learn personal financial management.

    There are also a ton of resources online that can provide classes, tutorials and other valuable information.  Just be sure you use reputable sources such as banks, educational institutions, or community groups.

    SOURCES:

    http://www.emergingedtech.com/2011/04/10-reasons-why-schools-should-be-teaching-financial-literacy-to-our-kids/

    https://www.financialeducatorscouncil.org/financial-literacy-students/

    http://www.fcac-acfc.gc.ca/eng/resources/educationalPrograms/Pages/home-accueil.aspx

     

  • Covering the Cost of University

    Covering the Cost of University

    University tuition is a huge expense that leaves many students deep in debt by the time they graduate – especially if they choose to live on their own, either in residence or near campus. Income from summer jobs is difficult to stretch out through the school year. That’s why many students work part-time on or near campus to offset the costs of school.

    But even before you begin to peruse employment options, don’t forget to apply for as many scholarships and bursaries you can find for which you are eligible. Search your school’s website for scholarship and bursary information and ask someone at the finance offices for advice. There is often more money available to students through these awards than there are students who apply for them. So don’t let competition dissuade you from applying. You have nothing to lose and money to gain! (Remember that the most important thing to do with any application for scholarships and bursaries is to have someone edit your work before you submit it).

    On-campus jobs provide another fantastic source of income to help you pay for the school year. There are a lot more options for work than you might think! Some students with disabilities, for instance, require extra assistance reading journal articles or writing down their thoughts. Look for a resource centre on your campus and ask if you could be hired to help out. The work, which is government-funded, pays relatively well. Check out your university’s administration offices to see what else may be available and ask all of your professors what they recommend.

    Off-campus jobs are another alternative means to acquire income as you go to school, but there are things to consider before you apply:

    1. How long will it take me to get to and from the job?
    2. Will my boss allow flexibility so that I can prioritize my schoolwork?
    3. Does what I learn at the job compliment my degree?
    4. Can I get something from the job for free that I would otherwise have to pay for, like a gym membership, food or clothes?
    5. Will I be able to manage my time effectively enough to juggle a job and school?

    It may be a good idea to settle into your classes and develop a homework and study routine before you seek employment. Prioritize your goals and decide how much time you need to commit to your education compared how much time you need to spend earning money.

  • Myth: I Don’t Need Money – My Parents Pay For Everything!

    Myth: I Don’t Need Money – My Parents Pay For Everything!

    Many young students might think that having their parents pay for their school tuition, shelter, transportation, food, clothing, hygiene products, entertainment and anything else would provide them with enough money to survive university. But this is a myth! The reality is that money is more than something that is used to purchase the things you want and need. Making money is more than just having money in your pocket, it is building your path to independence and self-sufficiency. Making your own money on top of whatever amount your parents are giving you is a great way of creating independence for yourself. This is hugely important because when you are not dependent on others for every aspect of your material survival, you can feel empowered and able to make your own choices. Having the feeling that you control your own life and are not dependent on your parents will inevitably allow you to see your life more clearly and to see exactly how your own decisions affect your life.

    Working is valuable for gaining money and for experience that can be used in different areas of your life. When you work you are taking on responsibility and people are depending on you to do the job. Having people depend on you instead of constantly depending on others is empowering and reinforces your independence. Additionally, building your work experience looks great on a resume and will help you later in life when looking for a job and for getting through your day-to-day life tasks that inevitably require some taking on of responsibility.

    Having your own money also allows you to have a little fun and minimize the guilt you feel when you spend the money your parents give you. If you want to go on a trip to Wonderland with your friends, get your nails done or even buy some new shoes, having your own source of income will allow you to make these little trips and purchases that make life worthwhile. When you have your own money, you are more in charge of the direction that your life will take. Overall, money enables you to be independent and to make choices better suited to you than you would if you were dependent on your parents.

  • Covering the Cost of University

    Covering the Cost of University

    University tuition is a huge expense that leaves many students deep in debt by the time they graduate – especially if they choose to live on their own, either in residence or near campus. Income from summer jobs is difficult to stretch out through the school year. That’s why many students work part-time on or near campus to offset the costs of school.

    But even before you begin to peruse employment options, don’t forget to apply for as many scholarships and bursaries you can find for which you are eligible. Search your school’s website for scholarship and bursary information and ask someone at the finance offices for advice. There is often more money available to students through these awards than there are students who apply for them. So don’t let competition dissuade you from applying. You have nothing to lose and money to gain! (Remember that the most important thing to do with any application for scholarships and bursaries is to have someone edit your work before you submit it).

    On-campus jobs provide another fantastic source of income to help you pay for the school year. There are a lot more options for work than you might think! Some students with disabilities, for instance, require extra assistance reading journal articles or writing down their thoughts. Look for a resource centre on your campus and ask if you could be hired to help out. The work, which is government-funded, pays relatively well. Check out your university’s administration offices to see what else may be available and ask all of your professors what they recommend.

    Off-campus jobs are another alternative means to acquire income as you go to school, but there are things to consider before you apply:

    1. How long will it take me to get to and from the job?
    2. Will my boss allow flexibility so that I can prioritize my schoolwork?
    3. Does what I learn at the job compliment my degree?
    4. Can I get something from the job for free that I would otherwise have to pay for, like a gym membership, food or clothes?
    5. Will I be able to manage my time effectively enough to juggle a job and school?

    It may be a good idea to settle into your classes and develop a homework and study routine before you seek employment. Prioritize your goals and decide how much time you need to commit to your education compared how much time you need to spend earning money.

  • 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.

  • 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.

  • Two Jobs Are Better Than None!

    Two Jobs Are Better Than None!

    My first year of university officially ended on the 21st of April and the time arrived for me to finally think about getting a summer job. As I am an international student with a ears almost as big as my fiscal expenses, I would need to work at least 65 hours per week in order to cover my tuition for the coming school year. That is the equivalent of working one full-time and one part-time job. Now, who would have thought that going to school was the fun part of the year?!

    Luckily, I had already landed one job at a certain casual Canadian restaurant; the second job came soon after at a local convenience store thanks to the efforts of a well-built network of friends. The first thing I was grateful for is that both the jobs I landed required the same base skill set. I worked as a cashier at both the restaurant and the convenience store and my job required me to do the following tasks on a day-to-day basis:
    1) Take customer orders
    2) Manage any and all numerical transactions
    3) Talk to customers and solve their problems
    4) Clean the restaurant/store from time to time
    5) Do not spill anything on the boss’s pants( one of my co-workers had the unfortunate pleasure of doing so)

    Much to my surprise, I had mastered the base skill set in under a week without much difficulty. My first job had me working mostly overnight shifts and, as bad as it may sound, it was actually the ideal situation for me to work. This is because I would work from 11 pm to 7 am every night (or day; honestly working overnight really messes up your perspective of time), go home, have breakfast by 8, take a 2 hour nap and go to my second job (which would start at 11 in the morning and would go on until 3 pm).

    So the days passed and I continued with my daily exploits. I will not lie to you – it was hard. But the work itself was not bad and I enjoyed most of it. I made some great friends and went through some very hilarious experiences.

    So here is my final pieces of advice for anyone who wants to make the most out of working two jobs:
    1) Find two jobs that essentially are similar in nature and require the same basic skill set. Doing so will allow you to improve on those required skills and perfect them.
    2) Find jobs that are close to your house. Doing so will save you a long commute to work and will also save you time that you can utilize to do other things – like sleep!
    3) Make the most out of every situation. As clichéd as this may sound, it does work. Try and make new friends at work. Broadening your horizons will also widen your network of contacts that may help you later in life.
    3) You do not want to physically and mentally over-exert yourself. If you cannot handle two jobs then it is better to just have one. You will avoid making mistakes and potentially being let go from both your jobs this way. Instead, focus your energy on looking for scholarships/bursaries/loans to help pay for school. Also, ask your employer for help as many companies have educational benefit plans for student workers.

    Working two jobs is a strenuous task but it is possible. So if you find yourself in a situation like this sometime in the future then hopefully you shall remember my advice for you!

  • University = Show Me The Money?

    University = Show Me The Money?

    During your first year of post-secondary education, you might feel like you have a chorus of administrators telling you to SHOW ME THE MONEY! This is probably the least awesome part of your university/college experience, but don’t lose hope! You can pay for your education and still have some dough left over if you manage your money.

    There are some great resources for student loans and scholarships that you can check out, but for now I’m going to share the best money-managing tip that’s saved me some moolah over four years of university.

    Some students may want to work during their first year, while some might prefer having more time to focus on their studies and soak up the university/college atmosphere. Either way, you’re going to want to have some extra cash handy to buy food, clothes, video games, hovercrafts, etc. The best way to make sure you’re not broke by October 1st is to…

    MAKE A BUDGET
    …and follow it! You could aim for a monthly budget, a weekly budget, or something in between. The disadvantage of the monthly budget is that you might get to the end of the second week and realize you don’t have enough coffee coins to last until the 31st. However, the monthly budget is advantageous if you KNOW you are responsible with your money and your self-discipline is strong enough to withstand the barrage of media which daily tells us that we need more stuff.

    Since I am personally quite fond of stuff, I went the way of the weekly budget and it worked fairly well. The disadvantage of the weekly budget is that it could be Monday and you’ve spotted a pair of jeans that you simply MUST have, or the new Halo game just came out and you’re not sure you can live without it. In cases like these, you might be tempted to dip into next week’s budget or blow a month of your carefully pinched pennies. Borrowing from one week’s budget to pay the expenses of another week is acceptable as long as it doesn’t happen too often and you’ve got legitimate reasons. Sometimes you might have to talk yourself out of that cute new top (everyone else is going to buy it anyways) or the pair of nunchucks you thought you just HAD to have (what are you ACTUALLY going to use them for?)

    If the personal pep talk doesn’t work and you decide you absolutely have to have something, just remember: you must eat (canned spaghetti for dinner every night does not count) and you must pay bills (interest rates are killer and cell phone companies are not as forgiving as their cute little mascots make them appear.)

    Here are some things to consider when making your budget:

    • The contents of your bank account!
    • Do you have a meal plan or will you be buying groceries?
    • Will you be working throughout the school year and how much will you make?
    • Do you have job plans for the summer?
    • How will you be paying for your next 2/3/4 years of university or college?
    • Are you eligible for or currently receiving financial aid? (Remember, loans must be paid back. Try saving a percentage of your money to put against your loan so that you don’t finish school and fall into a pit a debt.)

    Don’t be too generous with your budget or you’ll run out of money, but don’t be too strict either because you have to live on more than bread and water rations! Keeping the above six things in mind will help you to structure a budget that should work for you AND your bank account.

    Happy saving! (more…)

  • Myth: I Don’t Need Money – My Parents Pay For Everything!

    Myth: I Don’t Need Money – My Parents Pay For Everything!

    Many young students might think that having their parents pay for their school tuition, shelter, transportation, food, clothing, hygiene products, entertainment and anything else would provide them with enough money to survive university. But this is a myth! The reality is that money is more than something that is used to purchase the things you want and need. Making money is more than just having money in your pocket, it is building your path to independence and self-sufficiency. Making your own money on top of whatever amount your parents are giving you is a great way of creating independence for yourself. This is hugely important because when you are not dependent on others for every aspect of your material survival, you can feel empowered and able to make your own choices. Having the feeling that you control your own life and are not dependent on your parents will inevitably allow you to see your life more clearly and to see exactly how your own decisions affect your life.

    Working is valuable for gaining money and for experience that can be used in different areas of your life. When you work you are taking on responsibility and people are depending on you to do the job. Having people depend on you instead of constantly depending on others is empowering and reinforces your independence. Additionally, building your work experience looks great on a resume and will help you later in life when looking for a job and for getting through your day-to-day life tasks that inevitably require some taking on of responsibility.

    Having your own money also allows you to have a little fun and minimize the guilt you feel when you spend the money your parents give you. If you want to go on a trip to Wonderland with your friends, get your nails done or even buy some new shoes, having your own source of income will allow you to make these little trips and purchases that make life worthwhile. When you have your own money, you are more in charge of the direction that your life will take. Overall, money enables you to be independent and to make choices better suited to you than you would if you were dependent on your parents.