For many students, going away to university is the first time of real financial responsibility. Being in charge of your own finances, while liberating, is not as easy as you might think. We sat down with Kate Somers (assistant registrar, awards) and Pam Goodwin (assistant registrar, financial aid) and asked them what pieces of money advice they have for students looking to better manage their finances.
1. Budget
This may seem like a pretty obvious one. Annual budgets are imperative for most — if not all — students, but especially those who receive lump sum student loans that are meant to last the entire school year.
Somers advocates for not only an annual budget but also month-to-month budgets, “so you can really recognize the shortfalls and act on them early enough that you’re not getting into a position of filling the gaps with a credit card and then running up interest,” she says.
For example, many students forget to acknowledge the beginning of May in their annual budgets. “You might be working all summer but you probably haven’t had a summer pay cheque yet to have May 1 rent,” she says. “So that planning ahead can actually save you money in the long run.”
2. Review your spending
The little things can really add up. Goodwin uses the example of a twice-daily coffee habit from Tim Hortons. While the $2-3 seems like nothing at all, looking back at a month — or even a year — of those $2-3 purchases will probably change your mind.
“It seems like a small amount, but at the end of the month, when you truly calculate how much you’ve spent, its like ‘jeez, is Tim Horton’s really worth $150 a month when I could get a travel coffee cup and fill it up at home?’”
As Somers points out, letting go of your daily coffee routine could save enough money for a full year’s textbooks. “If Tim’s is so important,” Goodwin suggests, “maybe do a Friday treat day Tim’s, or something like that.”
3. Actively cut costs
It’s easy to skip out on opportunities to save money for the sake of convenience, but Somers urges against this. There is a lot going on in Halifax for students to save money. “Things like actually carrying your student ID and asking for discounts,” shesays.
Students get a 10 percent discount at Sobeys and Superstore on Tuesdays, and a surprising number of restaurants and other businesses have student discounts upon request.
You don’t need to spend money to have experiences. “Instead of going out to movies, have a friend over to watch a movie,” says Somers. There’s lots of free going on in Halifax too: check out the Emera Oval this winter for free skate rentals, for example.
Buying used whenever you can is another easy one: “textbooks is a pretty obvious choice, but used clothing, [and] if you’re setting up an apartment, using used kitchen supplies,” suggests Somers. With the number of students coming and going in Halifax, there’s a plethora of quality used goods floating around at Value Village and Salvation Army Thrift Stores.
4. Going out? Leave the plastic at home
“Do not take credit cards and debit cards downtown,” Goodwin urges. Alcohol and seemingly unlimited funds do not mix well, and learning that as early on as possible is a very good idea.
“Make sure you have your spending money in one pocket, your get-home money in the other pocket,” Goodwin adds, “and […] when the money is done, you know that you’re done, you’ve spent what you can spend and what you can afford […] and you still have another pocket to get you home.”
5. Practice smart gifting
When Christmas or your birthday rolls around, and your family and friends begin to ask you what kind of gifts you hope to receive, Goodwin’s advice is this: “forego the frivolous a little bit.” Asking for practical things like textbook money or laundry detergent can really help you financially.
The same goes for gift giving. Don’t feel the need to shell out when you can’t afford to. Somers and Goodwin suggested that something like offering to clean a person’s bathroom or oven would be a (free!) gift appreciated by just about anyone.
“Be hands-on with your finances,” are Goodwin’s last words of advice. “Know what’s going in, know what’s going out, and be willing to take charge, so if something is going off, you can address it right away.”
Learn more about manging your finances at dal.ca/moneymatters