Become a financially savvy student

TORONTO, Monday, Aug. 19, 2013 – Students may be academically prepared to come to university this fall, but are they financially savvy enough to make it in the real world on their own? Ryerson financial planning expert Alan Kaplan suggests new students read over these tips when preparing for the upcoming school year:

1.    Start by building a budget
Figure out how much money you’ll need for significant expenses such as tuition, books and supplies as soon as possible. Don’t forget to account for other monthly expenses like transportation, laundry, groceries, toiletries, entertainment, etc.

2.    Don’t borrow money unless it’s absolutely necessary 
The less debt you have upon graduation, the better. However, if you need to borrow money use low interest or no-interest options first, such as OSAP. Never pay for something on a credit card that you can’t pay off right away.

3.    Check out the OSAP Access Window
The OSAP Access Window (http://osap.gov.on.ca/) was developed by the Ontario government to help students make informed decisions when planning for their postsecondary education. It provides approximate costs by postsecondary institution, OSAP funding estimators, repayment tools and lots of other useful information.

4.    Get a head start finding free money
Explore the scholarships, awards and bursaries offered by your university. You may be eligible for some program-specific or special interest awards. Many scholarships, awards and bursaries have strict deadlines and require lengthy applications. Include deadlines for financial support applications in your calendar and make sure you apply in time to be considered.

5.    Look into ways to save money

• Brown bag it. Packing your own lunch is cheaper and healthier.
• Whether it’s used books, second-hand clothing or garage sale furniture, you can almost always find what you need at a fraction of the retail value.
• Take advantage of student discounts. Be sure to flash your student ID at entertainment venues, public transportation and anywhere else that will take them. Also check out special deals offered to you through your student union.
• Check on-line events listings and your campus papers to find free forms of entertainment
• Save the cost of your favourite coffee-house beverage every day by purchasing a coffeemaker or a kettle.
  

6.    Consider a part-time job as a source of income
Work full-time during the summer period to save money for the upcoming school year. If you need to work during the academic year, try to avoid working more than 15 to 20 hours per week – any more than that could have a negative effect on your grades.

7.    Don’t sign up for a student credit card
If you end up following the “this-is-my-only-opportunity-to-qualify-for-a-no-fee-credit-card” crowd, make sure you get one with a low interest rate and ask the company to fix the credit level at $500. Then be sure to use it only for bona fide emergencies. When credit cards are the only accepted methods of payment, which is often the case when making online transactions, save the money you will need before you make the purchase, then pay off your credit card immediately.

8.    Track all your expenses
Write down absolutely everything you spend money on, from tuition, to meals, to coffee. This will force you to write down how much you’re spending, prompting you to think about whether you really need to spend that money or not. While this might end up increase your savings, its real objective is to let you know if you need to change your spending habits and/or increase your income before it’s too late.

EXPERT AVAILABLE FOR INTERVIEW:

Alan Kaplan
Associate Professor
Ted Rogers School of Business Management
416-979-5000 x 2429
akaplan@ryerson.ca

MEDIA CONTACT:

Lisa Pires
Public Affairs | Ryerson University
Office: 416-979-5000 x 2863
lisa.pires@ryerson.ca
@RyersonU