1. Savings accumulation and student employment
With the current labor shortage and a minimum wage of $15.25 an hour, a student can easily find a job and save big during the school vacations. With a tipped job, the hourly rate can rise above $25!
So a student who works 20 hours a week during the summer can earn more than $3,000.
2. Reduce unnecessary expenses
When you’re a student, some expenses can easily be eliminated or reduced to save even more.
- Study sessions in a café: while trendy, it’s a real money-spinner.
- Restaurant meals and takeaway orders: packing your own lunch and dinner is more economical. Do you really want to work an hour at $15.25 to buy that sandwich that takes 10 minutes to make?
- Coffee on the go: similarly, these little phantom expenses add up quickly.
- Cellular data: wifi is available everywhere, so remember to reduce your package so you don’t pay unnecessarily.
- Student insurance: in some cases, you may not need to take out the insurance offered by your school if you benefit from coverage similar to that provided by your parents.
3. Everyday savings with credit card rewards points
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!
4. Government loans and grants
How do you calculate financial assistance for your situation? The Aide financière aux études website has set up a calculation simulator.
Here’s a simulation for a student with low-income parents who can’t contribute financially.
You pay no interest on student loans as long as you’re in school. After graduation, a short grace period allows you to find a job before starting repayment.
Finally, spread the total amount of the student loan over 10 years. Interest will have to be paid during this period. However, the loan rate is very low and the interest cost is tax-deductible.
5. Growing your savings as a student
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.
Compound interest is the key to financial independence. The student’s advantage? The younger you start, the faster you can reach FIRE!