It may seem like you can’t afford fun while you’re paying for school, but the truth is you don’t need to put recreation on hold during your studies.
We sat down with Ethan Sitter, Personal Banking Advisor with Cambrian, to chat about how to strategize and find that balance.
Here are some ways you can reach your financial goals and behappy and healthy along the way:
As a student up to the age of 23, you can get a Cambrian Connect Account, which reimburses your monthly service fees.
If you’re over 23, you can take advantage of Cambrian’s Unfee. With Unfee, your monthly service fees are immediately refunded if you have a monthly direct deposit, however small or large, set up for your account.
Budgeting isn’t limiting, it’s empowering! Use a budget calculator to track your monthly income (for example, part-time work or student loans) and expenses. That way, you can see where you can cut back and how you can comfortably leave room for fun in your budget.
It just takes some planning ahead, but once you have your ducks in a row and a system in place, you can feel secure in your budget and know how much you can comfortably spend.
Use your chequing account for day-to-day spending, like going out, eating, and having fun with friends, while also putting away a set amount of money in a savings account.
Even if you’re not able to put hundreds of dollars into savings, it’s important to save at least a little on a regular basis.
“It doesn't have to be a certain amount,” says Ethan. “It's different for everybody. For some people, $5 a month into a savings account is good for where they are. Some people, $25, others, $100. It's all dependent on what you're comfortable with.”
“In a savings account, you’re not only earning higher interest, but it’s also separate so you know that you’re going to use it forbigger expenses down the road,” says Ethan.
Getting your first credit card when you turn 18 is a great way to start building up your credit score, which makes it easier to get loans and mortgages later.
Having a credit card can feel liberating, but remember, don’t spend beyond your means! Be strategic about choosing what you want your limit to be.
“I recommend a smaller limit, $500 or $1,000, so you don't overspend,” says Ethan.
You will want to avoid credit card debt, so make your payments on time. It’s best to pay your bill in full each month rather than just the minimum payment.
“The most important thing is to make your payments on time. That is the biggest factor for your credit score,” says Ethan.
“Paying it off early certainly could help, but it's not going to be detrimental if you don't,” says Ethan. “Just make sure you don’t forget to pay your bill, or you're going to get dinged with interest.”
“If you’re wanting to stick to a budget and save money while still having fun, I would suggest looking through local ads and promotions,” says Ethan.
Why go out to see a movie on Monday when you can wait until the cheap night on Tuesday? Why spend full price on a meal at one restaurant when you scored a coupon for a different one?
“There are always coupons and promos out there. Just lookout for that kind of thing!” says Ethan.
If you often leave cooking to the last minute and find yourself getting quick bites from fast-food joints, those little costs add up.
If that’s the case, “then you can go back and be like ‘Hey, I'm spending $400 a month on restaurants,” says Ethan. “‘Maybe I can cut that back and then put more into another category.’”
“You can save money by meal prepping or making food at home instead of going out to fast-food places every day, and you can put that cash you’re saving into a savings account, earn higher interest, or have GICs where you can earn even higher interest. Then you can watch your money grow while still eating healthier.”
Who said fun costs money? There are many free local clubs you can join, like running club, chess club, dog walking club… the list goes on! Check out what local community centres have to offer.
You can also look out on social media for free activities, clubs, or events.
You don’t need to figure out your budget alone. Book a meeting with a Personal Banking Advisor at Cambrian today!
We would be happy to discuss your unique situation with you.
Our goal is to make complex topics like this one, simple.
