Ways students can save money

You’re at college or university and you know your money will be tight. Relieve some of that financial pressure now, enjoy a healthier bank account through your post-secondary years and perhaps graduate with less student debt by following these savings tips.

Consider the cost of where you lay your head at night. Living in a residence or apartment can be a great experience, but it is also very expensive. In 2017, a Maclean’s survey found that university students living away from home spent an average of $19,500 for a year of school and its associated expenses. Students living at home spent $9,300.

If you do decide to live away from home, sharing an apartment is usually cheaper than living on your own or in a dorm.

Budget realistically and don’t budge. Start with the many expenses you’ll encounter – fixed costs such as tuition, books, accommodation, travel, food and variable costs like entertainment. Balance those costs against your known resources - RESP income, family contributions, personal savings and so on - and income from summer or part-time employment.

Credit cards are typically readily available to college and university students, but they can drown you in debt. They can also be helpful in an emergency or for establishing a credit history. Make the responsible choice.

Don’t pay needless fees. Universities often charge for a student medical plan but you can opt out of the school’s coverage when you’re covered by a parent’s plan.

Buy used textbooks. A lot of learning is now done on e-devices but when you need traditional textbooks, buy used – and sell them at the end of the semester.

Take advantage of free or inexpensive programs. Use the school gym or clubs and sporting events.

Eat economically. If your tuition includes a meal card, use it instead of eating at restaurants. If you’re not on a meal plan, cooking your own food saves money.

Shop economically. Use your student card - look for businesses that offer student discounts. Shop around for bargains and use money-off coupons.

Make the most of government relief for students. File a tax return to take advantage of tax deductions and tax credits for tuition fees, moving expenses, student loan interest, GST refunds and so on.

Filing a tax return also allows you to build RRSP contribution room for the future.

Talk to a professional advisor about these and other strategies for relieving the financial stress of your education and for a sound financial future after graduation.