1210212.us16.myftpupload.com Managed WordPress Site

Tag: money

  • Holiday Gift-Giving on a Student Budget

    Holiday Gift-Giving on a Student Budget

    The dropping temperature is a surefire sign of the start of the holiday season. But while December is “the most wonderful time of the year”, it can also be the most stressful! It’s often difficult to dole out the holiday cheer when you’re saving up for college or have no time for a part-time job.

    If you’re feeling the pressure to splurge on lavish gifts for everyone you know, remember that sometimes it really is just the thought that counts. In fact, something not so expensive but truly heartfelt can make for a better present overall. To ensure you’re not left completely broke by the time New Year’s rolls around, consider some of these student-budget-friendly holiday gift ideas.

    Baking. Dig out your grandmother’s secret recipes (or find some online) and spend a day making a few types of cookies, bars or candies. Then wrap them up in a basket and give them away! Not only is this gift especially sweet (in more ways than one), it’s practically no-fail. Let’s face it, who doesn’t love holiday treats?

    Crafts. Forget kindergarten macaroni art! You’d be surprised at how many incredibly creative gift ideas are out there—all you have to do is conduct a quick search online. Chances are, the materials for your next DIY project can all be found at your local art store. Some examples of cute and crafty gift ideas are Sharpie mugs, notebooks, bracelets, and even handmade cosmetics. 

    Stocking stuffers. A collection of small knick-knacks is not only an affordable gift option, it’s perfect for situations when you just don’t know what the recipient will like. Instead of one big present, opt for an assortment of inexpensive stocking stuffers: chocolates, lip gloss, gel pens, soaps, mints, etc. Then find an extra-large holiday stocking and tuck all of your little presents inside!

    IOU’s. Really strapped for cash? The tried-and-true coupon book is your best bet. Come up with some ideas for fun things to do with your gift recipient: a home-cooked dinner for two, a foreign film screening, a vintage-store adventure and anything else you can think of. Then the next time you both have nothing to do, your recipient can cash in one of the coupons for an awesome day together (just make sure you’re doing all the planning, so it really feels like a gift).

    Your meagre student wallet doesn’t have to spoil your holiday season. Remember, the important thing is that you spend time with your loved ones and that the gifts you give them are more than just the price tag—they really come from the heart. Happy holidays, and happy hunting! 

  • Saving in Senior Year

    Saving in Senior Year

    When it comes to your senior year of school, it’s never too early to start thinking about your future.

    I know that a lot of students are already worrying about jobs, moving out, and exams. However, one of the things that will never stop being important is how to be responsible with money.

    One of the first things you should do is begin consulting with people who have been in the “official” adult world for a while. Your parents and potentially older siblings will be able to give you tips on how to be fiscally responsible. Remember that your parents have been budgeting and taking care of a family for years, so they’ll be one of your best guides. It might sound like they’re nagging you when they ask why you spend money on a new shirt when you already have 20, but they’re just doing what you should be – budgeting. You don’t need to disclose everything to your relatives, but asking them a few questions about how much they would recommend putting into savings, drawing up a plan with you, or even scheduling a meeting with a bank consultant are good places to start. You may be young, but the sooner you learn about money, the better your sustainability will be.

    Something else that works is to learn how to budget. Living within your means only becomes more crucial as you get older. If you’re crazy with your credit cards, don’t go shopping for a while. Take out cash and live with the money that you take out for a week.

    A big part of being financially responsible is understanding that sacrifices need to be made in order to help your future self. It may be a bit of a downer to not eat out as often as you’d like with friends, but there are always ways to improvise. Have a few friends come over for a homemade dinner. It’ll be worth it to give up a $40 restaurant tab if it means you’re putting money away for an apartment or a rainy-day fund.

    One of the best things that you can do for yourself is to consult with a professional. Schedule an appointment with a consultant at the bank about how to save, what plans are best for you, and the kind of account that will work best for you.

    Saving money is difficult – especially with the introduction of plastic cards. We don’t see our funds deplete and keep going until it becomes a problem. But, with these few tips to help get you started, fiscal responsibility and saving are right around the corner.

  • What are Taxes?

    What are Taxes?

    Taxes are collected by the government so they can provide programs and services to people every day. Everyone in Canada is required to pay taxes in some way. It may seem like people pay a lot of taxes, but the services the government provides are very costly, and lots of people use them. Therefore, everyone needs to help contribute to the city, province and country they live in.

    Some of the programs and services that are funded by taxes are public schools, parks and recreational centers, hospitals and health care, medical research, national defense, disaster relief, roads and highways, railways, public broadcasting and social assistance (which helps support the very poor when they need it).

    Common types of taxes include income tax, sales tax, property tax, corporate tax and inheritance tax. They are paid at three levels of government: Federal, provincial and municipal (city).

    Most people have money taken from their paychecks each time they get paid. This is called income tax. Each year, Canadian citizens must complete an income tax return claiming all of the income they made that year. They can also claim certain deductions and tax credits (these vary from province to province). Common deductions are tuition and books for post-secondary education, interest paid on student loans, etc. When you file your income tax, you will either get a return, meaning you overpaid that year and will receive some money back, or you will owe, meaning you didn’t contribute enough and you are required to pay more. In Canad, the CRA (Canada Revenue Agency) collects income tax.

    If you own property (land, house, apartment building, office complex, cottage, etc.), you are required to pay property tax. This tax is based on the value of the property. Property values are determined by property assessors who establish what the property is worth based on what it could sell for on the market.

    For young people, the most common tax you will have to pay is sales tax. It is a surcharge applied to most items you want to buy like candy, clothes, books, music, video games, toys, movies and sports equipment. For example, if you want to buy a new video game that costs $39.99 and you work hard, save up and take two twenties to the store, you will not have enough to cover the cost of the game. This is because a sales tax will be applied to the “sticker price”. Sales taxes or consumption taxes are collected on most goods, with the exception of basic food necessities, prescription medicines and baby necessities. In Canada, sales tax also differs from province to province. There is PST- Provincial Sales Tax, GST- Goods and Services Tax and HST- Harmonized Sales Tax.

    Sales Tax by Province

    Province GST/ HST PST
    British Columbia 5% (GST) 7%
    Alberta 5% (GST) 0%
    Saskatchewan 5% (GST) 6%
    Manitoba 5% (GST) 7%
    Ontario 13% (HST) 0%
    Quebec 5% (GST) 9.98%
    Newfoundland 15% (HST) 0%
    Nova Scotia 14% (HST) 0%
    New Brunswick 15% (HST) 0%
    Prince Edward Island 15% (HST) 0%
    Northwest Territories 5% (GST) 0%
    Nunavut 5% (GST) 0%
    Yukon Territory 5% (GST) 0%

     

     

     

     

  • The Holidays on a Budget (French version available)

    The Holidays on a Budget (French version available)

    We all want to get the special people in our lives the perfect gift for the holidays. But who says the perfect gift has to cost a lot of money? Most people appreciate the time and effort you put into the gift giving process. The old cliché is actually true – “it’s the thought that counts.” So with that in mind, here are a few holiday gift ideas you can buy or make that are sure to please your family and friends (and not break the bank):

    – Family Cook Books: Buy a nice hard covered notebook (you can usually get them for under $5.00). Use stickers, paint or markers to label the cover (e.g. “Hadland Family Recipes”) and write out all of your family’s past and present favourites. You can even go online and get some new recipes your family might like to try.

    – Use Photos: You can print them for free on your home computer or go to a retail store and print them there. You can use the photos to make a collage, family photo book or scrap book, or individual magnets of each family member (all you have to do is buy magnet paper at a craft store. Cut out a photo of each person, stick it to the paper and then carefully cut around it). You could also buy a wooden photo frame and paint and decorate it yourself.

    – Bookmark: Make bookmarks using photos of your family or characters from their favorite movie, TV show, book or singer. Print off the graphic you like and glue it to a piece of hard cardboard. Then cut the cardboard into whatever shape you want. Pierce the side with a small hole and string through ribbon or yarn.

    – Coupon Book: Make a homemade coupon book with personalized coupons. A few ideas are: One free house cleaning, a free coffee at your favorite coffee house, one free car wash, etc.

    – Memory Jar: Buy a large glass jar and then write down short memories or phrase that reminds you of your family on 365 pieces of paper (one for each day of the year) or, if you can’t think of that many, 52 pieces (one for each week of the year). Write a tag to hang off the jar stating the jar contains one memory for each day (or week) of the year. And instruct the receiver of the jar to take one at a time, read, remember and enjoy.

    – Baking: If you can, bake cookies, squares, breads etc. It is a yummy gift idea that is sure to please. And if you can’t bake, try making a trail mix or party mix instead.

    – Go to a Second Hand Shop: Look for books, DVD’s, CD’s or ornaments that are in good condition. Second hand shops are full of treasures. They are affordable and, even better, often times the money raised goes to a charity. So it’s like two gifts in one!

    – Wall Art: If you can paint, use your talents to create fun art for your family and friends. Paint something they like, like a beach scene, or try something abstract in colors that match their décor. If you have no artistic ability to speak of, find a second hand book or album cover that’s cool and frame it to create instant art.

    – Finally, if you have younger kids to buy for try making homemade crayons. First, find old broken pieces of crayons. Set the oven to 250 degrees. Place the crayon pieces in an old muffin pan, about an inch deep, and bake for 15-20 minutes. Let the new larger, multi-color crayons cool and pop them out. Make a homemade, personalized coloring book to go with the crayons printing off coloring pages online of their favorite things, place the pages in a report cover and label the front with their name (e.g. “Jamie’s Very Own Coloring Book”).

    Whatever you decide, remember the best gift you can give your family is the memory of a happy holiday. If you think back ten years, chances are you probably won’t remember what you got for Christmas but you will remember the little things…dancing in the living room while decorating the tree, the smell of simmering apple cider, the Christmas tree falling over in the living room, your whole family gathered around the table eating dinner and chattering all at the same time. These are the things that make the holiday season truly special. The gifts are just a nice added bonus.

  • Common Mistakes that College/University Students Make with Money

    Common Mistakes that College/University Students Make with Money

    Your post-graduation life will largely be about paying off the debts you accumulated while in school. Avoid these very common financial mistakes to make your life in the ‘real world’ less of a strain:

    The credit card hole…

    Sometimes credit can seem like an easy way to fix your problems or get what you want quickly. But the truth is that adding to the already massive student loan debt you are accumulating will weigh down your ability for success, your credit rating and your freedom. That is a lot of stress and debt to have on your back before you land a real job. Credit cards are a good thing if you are able to pay off the balance and create a strong credit history. But do not allow yourself to fall into the minimum payment cycle and subsequent interest hole.

    Not budgeting your student loan funds…

    Never forget that your student loan is for the essentials: tuition, books, transit and living expenses. Make sure that upon receiving the loan you take the time to hash out how much your year is going to cost and how much you have to spend on the different facets of your life. Many people get over excited when a large sum suddenly appears in their bank account. But university is extremely expensive, and the money is never as much as you think it is. Be careful and keep your receipts and a list of your expenses at all times. Be in control of your debt.

    Failure to meet with academic advisors…

    Academic advisors are detrimental to your success in post-secondary. It is important to see them regularly from before you actually begin school to your very last weeks as a student. It is their job to help you sign up for the correct courses, ensuring that you do not take any courses that will not count towards your degree or ones that will slow down the graduating process. Oftentimes, failing to meet with an academic advisor can result in the loss of thousands of dollars and time. For instance, if you miss a required class, it can entirely throw you off the correct track to graduate at the time you wish.

    Playing around with ‘drop dates’…

    Do not forget about the deadlines for dropping classes. If you wait until after the drop date you are waving goodbye to hundreds of dollars rather than receiving a full reimbursement. Remember that taking classes seriously means taking your money seriously. Without commitment you may receive a grade that will not count towards your degree and that is simply a huge waste of time and money.

    Ignoring scholarship opportunities…

    There is SO much free money out there. Apply for as many scholarships as possible and chances are you will get at least a few small ones. Set time aside to write letters of intent and have your resume ready and you could easily have a semester paid off. Speak to academic advisors about this, actively use university search engines and speak to your family and about work and organizations they may be involved with that provide scholarships.

  • Six Tips For Getting A Scholarship

    Six Tips For Getting A Scholarship

    A lot of college students end up with nothing but debt even before they graduate. The option of a scholarship has always been a number two priority when it comes to college students. Most think that they can just pay off their student loans after they graduate and get a job, but many find it too overwhelming. With a scholarship, not only will you study for free but some scholarship plans will even give you money just to stay in school or even provide you with an “allowance”.

    Here are a few tips to help you get a scholarship and avoid debt in college.

    Look for one as soon as possible
    Start looking for a scholarship even if you haven’t graduated yet. Start during your junior year of high school and take advantage of having less competition. This way, you can still renew your efforts and take additional opportunities.

    Look for scholarships elsewhere
    Don’t just limit yourself to online sources. Check with religious organizations, local clubs, your school guidance counselor and employers. Local scholarships are less competitive compared to the national ones and you can find corporations and businesses that award free education to their loyal customers.

    Don’t become intimidated just because you’re not on the top
    So your grades aren’t really made for the honour roll, but many scholarships don’t measure or base their decisions on your grades. Many scholarships would prefer someone who shows volunteerism and leadership.

    Search all year round
    You can find scholarships that are only available for a limited season. For example, some major department stores actually give out scholarships during the holidays as a prize. Treat it like getting a part-time job. You can get different opportunities throughout the whole year.

    Be honest
    Never exaggerate your memberships, skills, qualifications or grades. Better focus on a scholarship that you know you’re eligible for.

    Avoid scams
    There are scholarship scams out there that promise you a full scholarship if you give them a certain amount of money. If someone emails you and asks you if you’re interested in a “discounted” tuition fee, it’s best to avoid these emails so you don’t get into a debt collection lawsuit. These scammers are only after your money and they’ll make a run for it after you give your credit card number to them.

  • Money Management Essentials

    Money Management Essentials

    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.

  • Managing Your Money Wisely

    Managing Your Money Wisely

    It’s not fun being broke and it’s definitely not fun living paycheque to paycheque! Learning how to manage money wisely is a skill that should be taught in school. Unfortunately, most students aren’t taught this skill in school or at home and, as a result, rack up a lot of debt by the time they enter adulthood. If you want to learn how to manage your money wisely and avoid getting into debt, here are some simple rules to keep in mind:

    1) Don’t spend more than what you have – It sounds so simple, but you’d be surprised at how many people don’t follow this logic. So I’ll repeat it again – don’t spend more than what you have. Or, more accurately, only spend what you can afford. For example, if you only have $100 in your bank account, don’t go out and buy the latest iPhone for $800. If you really want to get a brand new iPhone, then save up $800 for it. It may sound painful, and it may feel like it will take you an eternity to do so, but doing this will actually save you money in the long run!

    2) Use cash – Why? Because when you use cash you can only spend what you have (see rule #1). So if you only have $100 in your bank account, you are only going to have $100. Using cash keeps you in check. It’s a good idea, too, to keep your receipts and write down what you spent your cash on so you know where the money went.

    3) Avoid credit cards – Some people cannot handle credit cards. The act of swiping or tapping a card to pay for purchases means that some people use their credit card to pay for things they can’t afford (thereby breaking rule #1). This means that when the credit card statement arrives a few weeks later, they are only able to pay the minimum payment required and end up incurring interest charges; interest charges which are ridiculously high — 19.5% and higher! Paying interest on credit cards actually costs you more in the long run. You end up paying much more than the original cost of the item you bought. For these reasons, stay away from credit cards! If, however, you do insist on having a credit card, then at least make sure you can pay off your statement in full (i.e. don’t spend more than what you have)!

    4) Put aside money into a savings account/emergency fund/rainy day fund – Life is unpredictable. You never know when you will need to have some extra money in your account for expenses you didn’t foresee. For example, let’s say your car badly needs a $200 repair job. Do you have some money saved up to pay for the repair and still pay the rent? What if you fall sick and can’t go to work for a few weeks – do you have some money in your bank account to tide you over until then? Put a little money aside from your paycheque each month into a savings account or other emergency fund. Do not use the money in this account unless you have to! The best part is that if you keep putting money into this account and don’t touch it for a while, your savings will actually grow thanks to interest! Your money can earn you money without you having to do anything. (In this same way, a credit card statement not paid in full can incur interest charges that will cost you more in the long run.)

    Following these 4 simple rules will allow you to manage your money wisely and avoid getting into debt. Good luck!

  • Your Financial Future

    Your Financial Future

    “Money is the root of all evil” is not the full story. In fact, the old proverb is oft repeated incomplete; it is actually “The love of money is the root of all evil.” Those three words are paramount. When considered reasonably and given weighted importance with what matters most in your life, finances are something you want to start thinking about right away.

    Tax-Free Savings Accounts allow you to put money away and let it accumulate interest without having to worry about taxes. The government allows a limit each year for you to add to the account. If you are older than 18 and have not taken advantage of this yet, those amounts carry forward. You likely have a limit of tens of thousands of dollars. As you get older and advance in your career, you will likely switch over to Retired Registered Savings Plans, or RRSPS, for short.

    TFSAs are more ideal at this stage because the funds can be accessed much easier. RRSPs are, as their name suggests, ideal for your retirement as you pay tax on the money when you withdraw it. Your income bracket in retirement will be much lower, meaning the same can be said of your taxes. One thing to remember is your RRSPs are not required to be withdrawn only upon reaching retirement. If you decide to take a year off work to study, travel, or write a book, you can withdraw the savings just like you would when retiring. However, savings are also not the fully story.
    “It’s not what you earn; it’s what you spend.” My dad told me this over and over as I grew up, and still throws it into conversations the odd time to this day. The endless attention placed on saving is greatly valuable, but can also be misleading. When you neglect to nurture the other half of the finances equation, your savings prowess is at the mercy of your spending habits.

    For one week, make a list of every single cent that you spend. You might be surprised how the little expenses can add up over time. In a world of tapping cards and paying with our phones, it is easy to lose track. As life builds in complexity, so do your finances. By the time you are juggling a multitude of monthly expenses, you will be glad you built good habits back when you could count monthly costs in your head.

    Figure out the life you would like to live. This should be the ideal balance between having things that will bring you happiness worth the effort and discarding efforts not worth the result. How big of a place do you need? Will you take vacations? Eat out a lot? Is a car of great benefit in the area you live, or is the public transit system adequately robust to get you around? Be honest with yourself, and remember that your answers can and likely will change over time.

    Source:
    Fontinelle, Amy. 8 Financial Tips for Young Adults. http://www.investopedia.com/articles/younginvestors/08/eight-tips.asp

  • Long-term Financial Planning for Students

    Long-term Financial Planning for Students

    As a university or college student, you’ve likely got a lot on your mind. However, when you’re looking at your education as a bigger picture, don’t forget to factor in your finances—as tempting as it may be to (not) do so. Many students are already strapped for cash with the increasing costs of tuition and stockpiling student loans. Responsible and long-term planning may help you avoid financial emergencies in the future.

    Here are some things to consider when planning your financial future.

    A good credit history can help you down the road if you ever want to take out large loans from the bank, or make large purchases such as a car or a home. To start accumulating good credit, you can sign up for a credit card and start using it to pay for your groceries or your textbooks. If you can demonstrate to your bank that you can reliably make your monthly payments—in essence, replace the money you’ve “borrowed” from them each month with your own savings—you’re well on your way to building good credit. Of course, make sure to know your limits: never overspend on your credit card unless you can hold yourself accountable and pay back the money. A lot of people are in debt today because they take advantage of this aspect of the credit card- don’t let that e you.

    Setting up a savings account is also a smart idea, particularly if you have a part-time job or some other form of income. Each time you get paid, you can set aside a portion of that money and deposit it into your savings. Depending on the deal you’ve struck with your bank, the amount of money you have in that account may grow (probably slowly) over time. But even if you don’t accumulate growth, having some money set aside for emergencies is still a responsible thing to do. This will also ensure that when you get your paycheque, you don’t spend it all in one place!

    Finally, a long-term financial plan is something that should be in the back of your mind as you go through your education. Unfortunately, degrees and diplomas are usually very expensive. Think about how your education is going to be financed (part-time work? student loans? bursaries and scholarships?), not only currently, but in the long run. Furthermore, think about whether you are going to enter the workforce right after graduation and start paying back any borrowed money, or whether you are going to pursue further education, such as graduate or professional schools. These decisions will determine the kind of financial steps you will have to take to ensure you will be able to pay for your schooling.