When you’re a student, your budget is pretty limited. With inflation in recent years and rising tuition fees and interest rates, more and more students are finding it difficult to make ends meet. Working at the same time as studying isn’t always possible. However, it is possible to save on a day-to-day basis when you’re a student. What’s more, managing your personal finances is essential. In this article, we share our best tips.
With the current labor shortage and a minimum wage of over $15 an hour in most Canadian provinces and territories, it’s easy for a student to find a job and save big bucks during school breaks. And on weekends, too. With a tipped job, the hourly rate can rise above $25!
For example, a student who works 20 hours a week during the summer can earn more than $3,000.
These savings will allow you to put money aside and cover part of the cost of student life during your study sessions. For example, to pay your rent or simply to have a fund for emergencies. An excellent way to make your savings last longer is to put your money into a high-interest savings account.
As a student, you can easily eliminate or reduce certain expenses to save even more:
From the age of 18, you can apply for your first credit card. It’s also the first step in getting your credit file off the ground.
Daily spending allows you to gradually collect Reward Points to finance adventures, in addition to daily savings.
Students and people with low incomes are eligible for a variety of credit cards that do not require a minimum income. On Milesopedia, we have a card comparison tool that allows us to filter credit cards according to our situation. More than 80 credit cards are available for zero personal income.
In fact, one of the cards that stands out is the National Bank Platinum Mastercard®. It requires no minimum income, and offers a welcome bonus and reimbursement of annual fees in the first year (for a limited time).
And why not take out a credit on your expenses? That’s what cash-back credit cards offer. The best ones can earn you up to 5-10% of your purchases. Take a look at those available for students:
By using the right credit card on your purchases, you can easily maximize your rewards. So you can save every day or collect points for your next trip!
Scholarships and student loans can help you cover some of the increasingly expensive cost of tuition. The Canada Student Financial Assistance Program works closely with the provinces and territories to provide student financial assistance, which varies according to your province of residence.
To help you calculate your financial aid, you can use the Government of Canada’s Student Aid Estimator.
For Quebec students, you can use the calculation simulator on the Student Financical Assistance website. In fact, here’s a simulation for a student with low-income parents who can’t contribute financially.
How does loan repayment work? First, you pay no interest on student loans for as long as you’re in school. After graduation, you also have a grace period, which allows you to find a job before repayment begins. During repayment, you pay interest on your student debt. However, student loan rates are generally low, and the cost of interest is eligible for a tax credit.
You should withdraw the bare minimum for your lifestyle so that the rest of the capital continues to grow. Credit card rewards points can reduce most budget items, especially if you’re targeting welcome bonuses.
To make your savings grow, you can put your money into a TFSA (if you’re 18 or over) or a high-interest savings account. Even if it’s a small amount, the most important thing is to get started and get into the habit of saving.
Compound interest is the key to financial independence. The student advantage? The younger you start, the faster you can reach FIRE!
Now you know our top tips for saving money as a student. However, there are many other money-saving tips that don’t just apply to students. To find out more, check out this guide:
Many of our other guides will help you save money:
In short, there are a number of ways in which you as a student can save money on a daily basis. Among other things, these savings can help you make ends meet. They’ll also help you pay part of your tuition or rent, deal with unforeseen circumstances, and much more.
There are many ways to save money as a student. You can reduce your current and unnecessary expenses, save with credit card rewards points, obtain government loans and grants, grow your money with a high-interest savings account, and much more.
A student’s monthly budget varies according to a number of factors. Academic level, program of study or training, educational institution, access to loans and scholarships, housing costs and transportation costs are examples of factors that vary the monthly budget required for a student.
There are many ways to earn money as a student. For example, you can get a paid part-time job (or increase your hours), or put your knowledge or skills to good use by offering your services (freelance). But is this really what you want? Think about the impact on your studies.
Savings are here:
