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We all know the importance of education and Canadian\u2019s are lucky enough to live in a country where education is more accessible than most. In 2016, <\/span>over two million<\/span><\/a> Canadians were enrolled in post-secondary education and the country tops the<\/span> list <\/span>for top ten most educated countries. <\/span><\/p>\n Although education is more accessible in Canada, that doesn\u2019t mean that the majority of young people can afford the hefty price tag that\u2019s attached to going to university or college. In <\/span>a study<\/span><\/a> done by Macleans, students reported to spend on average $9,300 per year if they were still living at home, and a whopping $20,000 for those that moved away from home. <\/span><\/p>\n The cost of school and how students are going to pay for it is daunting, and is a leading cause for stress among young people. How do you pay the bills at only 17 or 18 years old? And once you\u2019re finally at college or university, how do you continue to keep your finances in check? Figuring out your finances for going to school can be challenging but here are some tips to help you save money as a student and save your pennies for the things that matter, like getting your tuition paid on time. <\/span><\/p>\n Remind yourself what you\u2019re saving for and keep reminding yourself of that every step of the way. For example, if you need to save $773 for textbooks (the average cost in Canada), it likely seems impossible when you stare at the small number of dollar bills in your bank account. However, focusing on that end goal of buying your books every single time you make any purchase, especially unnecessary ones like eating out at restaurants or buying your daily coffee, it\u2019ll keep your focus on your main, end goal. Remind yourself what is important and what you can live without. It\u2019s amazing how quick the savings will add up when you do that!<\/span> It\u2019s no surprise that going to school is a lot of money and it can be overwhelming when you look at the price tag for school as a whole, which is why it\u2019s important to set milestones for your savings. Know how much you want and can save per month, and realize it\u2019s okay to start small. Make sure you build this into your budget! By setting smaller milestones to your larger goals, they\u2019ll become more achievable and less overwhelming. Putting this money automatically into a savings account that you don\u2019t have easy access to will also help your savings add up quicker than you\u2019d think. Look into an <\/span>RRSP or TFSA<\/span><\/a>. <\/span> Consider all your options for paying your student expenses. The smartest thing to do is start saving for school years before you go, however, lots of young people aren\u2019t really on top of this. Instead, it\u2019s common to turn to bank loans like lines of credit, student loans like <\/span>OSAP <\/span><\/a>in Ontario, scholarships or bursaries, or their parents. <\/span><\/p>\n We\u2019ve broken down each of these options a bit more below: <\/span> Bursaries: <\/b> Loans: <\/b> You can get more details on where to start with these financial support options <\/span>here.<\/span><\/a> Think through each of the options and figure out what makes the most sense for you. Also determine how you\u2019re going to ensure you don\u2019t just blow through this money, but make it last so the debt at the end of your schooling isn\u2019t more than it should or could be. <\/span> Making a budget can seem daunting and time consuming, however, taking the time to get your finances in order will be one of the most valuable things you do as a student. Otherwise it\u2019s very easy to overspend and lose track of where all your money is going, and believe us, in college, it\u2019ll go quick! So where do you start?<\/span> 5) Balance your budget<\/b>Keep your goals in check <\/b><\/h3>\n
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\n<\/span>TIP:<\/b> Make these goals <\/span>SMART <\/span><\/a>(specific, measurable, attainable, realistic and timely). By building SMART goals these goals will hold you more accountable and seem more achievable. <\/span><\/p>\nSet milestones<\/b><\/h3>\n
\n<\/span><\/p>\nLook at your options <\/b><\/h3>\n
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\n<\/span>Scholarships: <\/b>
\n<\/span>These are awarded on the basis of merit which is usually your academics\/grades, involvement in volunteering or school activities, and other achievements. They can range from a couple hundred dollars to full <\/span>scholarships<\/span><\/a>. You aren\u2019t expected to pay back scholarships, which is the ultimate type of financing to help with your schooling! <\/span><\/p>\n
\n<\/span>Similar to scholarships, you\u2019re not required to pay bursaries back and they are awarded primarily off financial need, but can also include some of the similar requirements or achievements as scholarships. <\/span><\/p>\n
\n<\/span>The government provides loans to help financially support students. These loans require you to pay them back, usually six months after you finish school, and vary in amounts based off financial need and your families income.<\/span>
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\n<\/span>Family: <\/b>
\n<\/b>Is your family willing to help you out with school? Will you need to pay them back? Ideally if your family can help support your schooling, they are the best people to take the loan from since there won\u2019t be interest on the money. Interest will start adding up the longer it takes for you to pay it back.<\/span><\/p>\n
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\n<\/b>Make a budget<\/b><\/p>\n
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\n<\/span>1) Determine a time span for your budget <\/b>
\n<\/span>Whether for a month, the school year or calendar year, determine what makes the most sense to you. However, as a student, keep in mind that your income will likely vary from month-to-month, and if you create a calendar year budget, take into consideration the months you won\u2019t be in school. Also take into consideration any \u201cemergencies\u201d that might come up. For example, budget the cost of maintenance on your car. <\/span>
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\n<\/span>2) Choose a tool that helps you manage your budget<\/b>
\n<\/span>It\u2019s 2018, which means there is a lot of great software and apps out there to help you track your expenses and income. One of our favourites is <\/span>Mint.<\/span><\/a> It\u2019s important to not just make your budget and never look at it again, even when you think you may not be overspending in a certain area, you might be. So keeping track of all your transactions, even the small ones.<\/span>
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\n<\/span>3) Review your income and\/or savings<\/b>
\n<\/b>When creating your budget, take a look at what your income is or will be. This will really depend on the person’s situation and if they are working throughout school, only in the summer, etc. Your \u201cincome\u201d may also be coming from loans and\/or family who are helping you out. <\/span>
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\n<\/span>4) Identify and categorize your expenses
\n<\/b>Estimate your monthly expenses by recording everything you spend in a month (this is where that app will be helpful). This will help you understand where your money is going and where you can cut back. Factor in the costs that come along with school like books, supplies, moving expenses, housing, tuition, etc.<\/p>\n
\n<\/span>Look at your income and look at your expenses, what does this leave you with each month? Do you have any extra money to spare or are you in the negatives? <\/span>
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\n<\/b>6) Keep reviewing your budget<\/b>
\n<\/span>Once you\u2019ve gone through this exercise, don\u2019t forget about it. Review your budget monthly to see where you may have overspent or look for new ways to save. <\/span><\/p>\n