3 budgeting tips for post-secondary students

(NC) Back to school is an exciting time for post-secondary students, but it can also be a source of financial stress.

Here are three tips to help you make a financial plan for campus life and beyond.

1. Make a budget

   It may not sound riveting, but budgeting is the best way to manage your finances.

   First, you need to determine your short- and long-term goals. These could include things like reducing your weekly expenses or paying off your student loan.

   Then, you need to evaluate your “needs” and “wants.” You need a place to stay, food and clothes. But you may also want to take a road trip with your friends for March break. A budget will help you determine what you can and can’t afford or help you save for a specific objective.

   Finally, list your income, savings and expenses. Consider all costs, from big ones like tuition to small ones like your daily coffee. Enter this information in a tool such as the Budget Planner developed by the Financial Consumer Agency of Canada. Adjust amounts in each category to balance your budget.

2. Keep track of your spending

   Sticking to your budget is not always easy. Keep your receipts and bills, and compare your budget to what you spend at the end of each month.

   If there are important differences, figure out why. Were there big-ticket items, like new furniture, that won’t be repeated each month? Consider setting spending limits to help you reduce costs if you tend to overspend in certain categories regularly.

3. Get ready for the unexpected

   Keep in mind that unexpected expenses will occur, from additional books to travelling home for holidays. That’s why it’s important to build an emergency fund.

   It may sound out of reach, but you can start by putting aside even a small amount on a regular basis to deal with unexpected circumstances. Knowing that you have this buffer will help relieve financial stress and set you up for success.

Find more budgeting advice and a free online budget calculator at canada.ca/money.