Freedom brings responsibility: attending classes and studying while maintaining a social life and making time for trivia, dining and even part-time jobs – all trying not to let any debt get out of control.
“When you are 18, a lot of things will bring you financial changes,” said Shannon Lee Simmons, a certified financial planner and founder of the New Finance Academy. Students entering colleges and universities may want to apply for credit cards, open a chip account, and now they may find themselves responsible for their daily expenses. “There are a lot of financial bets, and the first time you did it vigorously at the same time.”
Over the years, with the increase in tuition, books and meals, several studies highlighted the financial struggles of college students, which added stress to the list of concerns young people are dealing with today. A 2024 Canadian Student Association Alliance survey shows that more than two-thirds of students are expected to graduate with debt. The report also found that the average annual cost of living for students is $28,731.60.
How to Pay for Schools and Have a Life – A Guide for Students and Parents
Establish good financial habits from the beginning
Experts say it is important to establish financial habits as early as possible to help finance effectively.
“This is the time you develop a habit in your life,” said Bruce Sellery, CEO of Credit Canada, a nonprofit credit consultant. He added that students need to lock in a strong mindset before entering college.
“It’s that: Living within your means. If you don’t have money, you won’t spend money,” Seleri said. “It’s a habit. It’s a skill. It’s a value.” “It’s going to serve the rest of your life.”
Before the school year begins, Simmons recommends developing a 12-month financial plan that includes a registered Education Savings Plan (RESP), a list of income from any job or student loans, including fees such as tuition, books, transportation and rent, and see if you can live within the remaining expenses. “With schools, resources and a lot of expenses are limited,” she said. “So we just have to squeeze life into the end.”
Understand the terms of student loans
Stacy Yanchuk Oleksy, CEO of Currency Tutor, said students who take on student debt should know what they need first.
