It is hard to believe that summer is almost over and we all know what that means – back to school. For some students, they are beginning a new chapter in their lives and heading away from home for the first time to attend college or university. It can be both scary and very exciting at the same time for them.
Many of these students probably have no idea regarding money management if they were never taught it at home. By not having the proper money management skills it can strain relationships with their family and friends, and it can negatively affect a student’s health and pyscholocigal well-being. Which in turn will affect their student success and ultimately their career.
It is imperative that the student know what their income for the semester or the year is. The income is derived from many sources including: OSAP, scholarships, grants and bursaries, savings, personal loans, money from parents and guardians, and from employment.
The expenses that a student will have include, but not limited to the following: Tuition, books and supplies, rent, utilities, telephone, internet, cellphone, groceries, transportation (taxi, gas, insurance, repairs and maintenance, and parking), laundry, entertainment, and other expenses (toiletries, household goods, and clothing).
If there is a difference between their income and the expenses, the student must either cut expenses or find additional revenue.
Some way to cut student expenses are as follows:
- Use the library as much as possible.
- Buy used books if you can. Don’t always purchase your school supplies from the campus shop if you don’t have to. Staples, Wal Mart, and Dollarama all carry school supplies.
- Know the difference between needs and wants.
- Use only cash machines from your own bank. You will pay extra for the privilege of using a different bank for withdrawing money.
- Stay away from credit cards if you can. Spending can easily get out of hand and if you can’t pay off the card, you will give yourself a bad credit rating which is not the best way to start out in life.
I wish each and every student every success in life. Starting out with sound money management skills is imperative to be financially successful in life.