What are the best financial tips for students?

Описание: In this segment of Finance Friday, Dave gives financial tips for post-secondary students.

Aired on September 9, 2022, on CHCH Morning Live.

00:19 Dave, let’s start the season off with some tips for post-secondary students who are just starting classes this week. Most students find it hard to manage their finances don’t they?

Yes, post-secondary students continue to say that one of the hardest transitions from high school to college/university/trade school is managing their finances. Our elementary and high schools do a good job in preparing students to have success in their future studies and most students know what they have to do to pass their courses: go to class, pay attention and study! What our schools don’t do such a great job at is preparing kids to succeed in managing their finances and their money. This causes stress for many students and for parents when kids call and say they are out of money.

01:05 What should students do to get off to a good start financially?

It all starts with simple budgeting. Unless you have an abundance of cash, we all need to budget so we understand how much money we have coming in and everything we have to spend it on. For students, most have better luck managing finances if they plan for their big expenses separately from their spending money. This could be done by using two separate accounts. One account for covering the big ticket items which are a one-time cost each semester (tuition, room/board if you are on campus and books) - those have to be paid and you generally know what they are.

Have a separate account for your spending money. This can best be done on a weekly basis. Take your spending money for the year, divide by the number of weeks in school (i.e. 15 weeks each semester, 30 weeks in total) if you have $2,000 for example divide that by 30 and you have $66 a week.

02:07 What are some ways students can be frugal and make sure their money lasts?

If you are short on funds you can always get a part-time job while in school. But don’t overdo it, studies have to be your main focus and you always want to enjoy school life as well. Many bursaries and grants are available to apply for, look on high school and college websites, parent’s workplaces, clubs/associations and the community you live. Some are there for the asking and costs $0 to apply. Identify your “must haves” vs “nice to haves.” A $10 Starbucks a few times a week will get you behind in your weekly spending allowance. Make your own coffee.

Don’t waste your meal plan and don’t spend money at restaurants, fast food or Uber Eats! A Forbes study showed that eating out is 5 times the cost vs making a meal at home. Buy used textbooks or even share text books with a classmate. Take advantage of student discounts and find cheap or free social activities on campus vs local bars at $8 a drink.

03:11 Should students have a credit card or does it often get them into financial trouble?

Both! A credit card is a great way to build a student’s credit score, get reward points and pay for emergencies. But, use it like it’s part of your weekly spending allowance and pay it off each month. In the example we used previously, the student still has the $66 per week. A credit card doesn’t give you more money. If you charge $120 to your credit card you’ve just used two weeks of your spending.

Learn more about financial literacy at FirstOntario.com/Financial-Literacy.

Learn more about student banking at FirstOntario.com/Student.

At FirstOntario Credit Union, we are committed to financial literacy. We know that strong financial literacy is key when making confident, informed decisions about money, including when you should spend it, why you should save it and how to make it grow. Our CSO, Dave Schurman, visits CHCH Morning Live every other week for a live Finance Friday segment. He talks about different ways to make the most out of your money and addresses viewer questions. If you would like to submit your questions to Dave, send them by email at [email protected] or via Twitter at   / finance_friday  .

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