Monday, August 13, 2018
The Ultimate Back to School Guide
It makes me very sad to say, but we are getting close to that time of year when students across the continent head back to school. You may already see the signs of a fleeting summer at your local shops. While people like me despise this time of year, mainly because it means summer is ending, parents rejoice as relief is in sight. For those heading to or back to post-secondary education, it can be extremely stressful organizing your life before the university wallet-fire begins. Today I am going to give my financial guide for back to school so that you can be less stressed this year. Both parents and students should pay attention, as these tasks will save you both money and a lot of headaches.
The “B” Word
Get your mind out of the gutter, I’m talking about budgets. I know I speak about them a lot, but they really are important. If you are a parent, it is important to think about the added expenses that you will incur during the school year. Chances are they are less than the summer was, because of all that free time. Nonetheless, find out what activities are on the hopper for this year and check out what is needed. Grade school loves to throw random expenses at you on a Thursday in October. Those $30 field trips will add up. For students, having a budget is extremely important. Just a heads up, you will be broke, or at least most of you will. This means that every dollar matters, so keep track of your spending and allocate yourself funds for the things you need and want.
Budgeting for Students: 7 Solid Tips – Budget Boss
Begin Bargain Hunting
There are a lot of deals that will pop up over the next month. If you need supplies, now is the time to get them. Stock up on what you need, but don’t overdo it. Also understand that certain things do not need to be replaced every year, like a laptop or phone. It is important to instill in your children that they should take care of their possessions or they will go without. The fear of being the only kid without a smartphone should set them straight. Wholesale stores make a killing this time of year, which is why they can provide items at a reduced cost. Get what you need and get out.
Don’t overdo it on the clothes
When your kids are young it is cute to see them in Air Jordan’s. While it may be cute, I die a little inside. When your kids are young, covering them with fabric is sufficient. There is no reason for there to be a name on the outside of the material. They will outgrow everything you buy them within a year or two. Even more, they will destroy everything you buy them even faster. My dad told me when I was younger that if I wanted name brand clothes, I had to get a job. I was pretty upset about it, but I get it now. For those heading back to college, I will be totally honest with you. No one cares what you are wearing to lecture. Invest in laundry detergent and deodorant, you will be better off.
Evaluate Your Emergency Fund
I preach the importance of emergency funds on the daily. When you have young children or when you are a student, it is vital to survival. Small and even large costs will pop up all the time. While I believe we all should have 3-6 months of living expenses saved in case of emergency, I also believe we should have some “slush” savings in case annoying expenses pop up. This is a couple grand lying around to replace a car battery or buy a new textbook in the middle of the year. Build into your budget a little bit of emergency fund savings and over time it will grow. Even something as simple as $20 a week will be over $1000 by next year. Get started on it today.
Habits You Should Develop in College: The Money Mentality – Budget Boss
Hunt for Scholarships/Bursaries
If you are in College you have to make it a priority to get free money. There are thousands of scholarships and bursaries out there to be had. People who have really good grades, are a visible minority, are part of an organization, are poor, have a medical condition, are on a sports team, along with countless other things will add up to money in your pocket or money saved. Remember that every little bit helps so try your hardest to get that free money. Also, when you do get a scholarship or bursary, use it for what it was intended for, your schooling. I used to get 3K annually in the form of a bursary. I don’t remember the parties that occurred around that time, but I do remember the years paying off student debt. Be smart folks.
Find a Job
Everyone can work part-time while in college. Even if you only put in 8 hours of work a week, that is still spending cash that will help you not accumulate as much debt while in school. Take some time right now before school starts to look for part-time work to supplement your lifestyle while in school. You do not want to be servicing the interest on a cheeseburger when you are 30.
Open an Education Savings Plan
All this money talk is depressing. One sure fire way for your child to never have the problem of crippling student debt is to open a Registered Education Savings Plan or RESP. The government of Canada will contribute up to 7 thousand dollars over the lifetime of the fund and you can get money even if you don’t contribute a dime! Something as small as $10 a week while your child is growing can really add up by the time they are in college. Besides that, the best money in the world goes into an RESP, free money. Take advantage and make your child’s life better.
Saving for a Child’s Education – Budget Boss
Think about ditching the wheels
During my time at the beautiful University of Western Ontario here in London, I didn’t have a car. To be totally honest, I didn’t even really notice the loss. A bus pass came with my tuition and it got me all around the city for a fraction of the cost. In my eyes, the only reason a university student should need a car is if they must commute to school because they live at home with their parents. Besides that, it makes sense to ditch the wheels and save as much money as you can. Seriously contemplate losing the car for the school year and focusing on maintaining a balanced budget.
Chill out with the activities
The most important word you can ever tell your child is no. You will be bombarded with activities during the school year and unfortunately, they all cost money. There is no reason why your child should have something to go to every night of the week. Things like competitive dancing and hockey can be devastating to your bottom line. While I love sports and think children should take part in them, they need to know that it is a privilege. That may mean that they can only participate in one activity at a time. For all the college students out there, drinking is not an activity. It is fun, yes, but it also blows a hole in your wallet. Take it from me, chill out with that too.
Plan your vacations
I never went away for Reading Week at University because I always went to work instead. For those of you who plan on going to Senor Frogs this coming winter, start saving now. There are 28 Weeks until Mid-February. Saving $50 bucks a week will give you $1400 by then and your VISA bill will thank you. For parent’s coming off a summer filled with vacation time with the kids, ask yourself this question: How expensive was this summer? Did you charge all those family outings and now have a nasty little reminder coming in the mail? If you wish to vacation every summer with the family, make sure you are prepared. Set aside a little money for that task. There is no reason to be surprised you have no money next year when the cottage comes calling.
I always look at September as an annual benchmark. Summer is over, and it is time to get back to work. Use this time to focus on the little things you often let slip through the cracks, like the cost of having children. Slush funds are for more than secret shopping sprees and wings with the boys. They should be used for the stuff that always seems to take you by surprise, expensive children.
“Education is what remains after one has forgotten what one has learned in school.” – Albert Einstein
Email – joe@budgetboss.ca
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