Heading back to university or college is an exciting time. There are so many new opportunities, possibilities, and avenues for you to succeed (not to mention socializing with your friends). Instead of focusing on studying or networking however, many students find themselves struggling with their finances. It can be a major stressor that impacts your studies and your social life. Here are some tips that can help you stay on track.
How to Avoid Major Financial Pitfalls
Plan for the future:
While most mindfulness gurus may suggest that the secret to happiness is living in the present, as a student, you simply have to plan for the future. Your earning potential is substantially reduced when you’re a student. So, you need to plan your finances for the duration of your education in advance. You may find that you need to save up and live on your savings for a while. Or you may find that your savings aren’t going to cut it and look for part-time employment that will allow you to work and study at the same time. You may also need to apply for grants and scholarships quite some time before your semester starts. If you don’t plan, you may find it difficult to concentrate on your studies and get distracted by your financial problems.
Take advantage of banking innovations:
Along with funds, one of the things that students always seem to have too little of is time. Who wants to bus to a bank branch? If you are not aware of the latest banking innovations, you may end up spending a lot of your precious time as a student on manual processes and paperwork. However, digital banking has come a long way and you can do a lot more online today than ever before.
Take, for example, the fact that you can use a mobile banking app to make transactions on the go or check your balance whenever you need it. It’s almost like having your bank at your fingertips. Internet banking also allows you to make many types of requests online no matter where you are. You can even access a whole range of online banking services that speed up every single process, saving you a lot of time vs going the manual route.
Make sure you have a free bank account:
Here’s the cold hard truth about most banks: they exist to make a profit for their owners or shareholders. One way they do this is through the interest customers pay on any loans or lines of credit they take. Another, slightly more surreptitious way, is through banking fees and penalties.
Banking fees are fees customers pay for using the bank’s services. This may include anything from having an account, using ATMs, debit card transactions and more. Some banks charge as much as $30 per month just as a monthly maintenance fee. There are also charges for things like going beyond a transaction limit that your bank has attached to your account.
For example, you may have only a limited number of free ATM transactions per month. Once you’ve exhausted your limit, any additional ATM transactions may bear with them a small charge.
It may not seem like much, but over time those charges can add up. Just think, if you have to pay $30 as banking fees every month, that’s $360 taken from your pocket every year.
Have an emergency fund in place:
Ever heard of the phrase, “saving for a rainy day”? Well, that ‘rainy day’ could come at any moment. It could also refer to a whole slew of different types of emergencies that require urgent funds. So, what exactly is an emergency fund? Simply put, it is an amount of money that you keep aside and only use in case of a true emergency.
Remember, an emergency does not mean those urgent midnight junk food cravings. Instead, as a student, needing resource material or a research portal subscription the night before you have a paper due could count as an emergency. A rule of thumb when it comes to emergency funds is that you need to make sure you replenish them as soon as you can. Never let your emergency fund run dry.
Also, your savings could be your emergency fund, but should ideally be separate. (Don’t have enough savings or don’t think you can build an emergency fund fast enough? No worries. There is a great alternative below!)
Take advantage of scholarships:
Remember when we spoke about planning for the future being paramount as a student? If you’re someone who is looking to get financial aid in the form of a scholarship, then that planning becomes doubly important. Usually, scholarships involve a strict application process, may require specific and even tedious paperwork (including essays), and even need rounds of interviews before you are selected. Many scholarships also cover only certain parts of your expenses such as tuition fee. Therefore you must ensure that you do your research, submit your applications in time, and take full advantage of every bit of financial aid at your disposal.
Use student housing and other student subsidies:
As students, there are a number of discounts and subsidies that you can take advantage of by showing your student ID. If you’re in a full-time course that requires you to live on or near the campus, then you may even be able to get student housing. Sure, you would have to share your residence with other students, but student housing can go a long way in saving you all that extra rent expense.
Back-to-School Tools
So, what can we offer students to help? Here are a few of our back-to-school tools to save you money and help manage your expenses!
Unable to meet your education expenses? Get a Student Loan from Innovation.
If you can’t meet your expenses, don’t fret! You can get an education loan from Innovation. Use the funds to pay your tuition fees, student fees, resource expenses, etc. There are various types of student loans you can apply for including loans for mature students.
Wondering how your student loan will pan out? Find out now using our education loan calculator. Learn more about education loans at Innovation today!
Paying too much in banking fees? Get an Innovation No-Fee Bank Account.
Unlike most banks, Innovation’s profits go right back into serving our customers. Our No-Fee Bank Account is truly free! That means you pay $0 in banking fees. It sure beats that $30 a month you’d probably have to cough up otherwise. With a No-Fee Bank Account, you can save up to $360 a year, without having to maintain a minimum balance. You’ll enjoy free and unlimited Interac e-Transfer® transactions, debit transactions, free ATM transactions, bill payments, and more.
Ready to join 65,000+ Canadians who bank with Innovation? Learn more about our No-Fee Bank Account now.
Struggling to get a scholarship? Try the no-essay scholarship at Innovation.
All of that planning and essay-writing and scholarships still out of your reach? Or does even the thought of writing yet another scholarship essay fill you with dread? At Innovation, you can get a scholarship without an essay. Yes, you read that right. You could win $1,000 to go towards your education just by entering the draw. In fact, with four $1000 scholarships up for grabs every month, you may just find yourself a lucky recipient. Go ahead, apply today, and “may the odds be ever in your favour”!
Don’t have an emergency fund? Apply for an Innovation Line of Credit.
We get it. Building an emergency fund can seem daunting; and using your emergency fund for trivial expenses can be too tempting. The alternative? A line of credit can help you throughout your education and beyond, serving as a true safety net. A line of credit is a loan attached to your bank account. That means you’re covered if you overspend and can access funds quickly during an emergency. Want to know more about this great alternative to a traditional emergency fund? Learn more about an Innovation Line of Credit.
Unaware of what you can do in online banking? Upgrade to Innovation’s digital banking.
Whether it’s online banking or using the Innovation mobile app, digital banking will make managing your finances a breeze. Bank from anywhere, any time. All you need is the internet and your laptop or smartphone. Download the Innovation banking app on Android or iOS today!
Questions?
Have more questions about student loans, lines of credit, digital banking or our No-Fee Bank Account? Contact us today. We’re here to help!