Being accepted into university, college, or grad school is a major milestone in your child’s life.   Before they head off to campus next month be sure to advise them on how to attend post-secondary without racking up debt.

 

A study conducted by TD Canada Trust found that more than one-third (38%) of undergraduate students wish they had stuck to a budget while they were in school, and 43% wish they would have spent less on nights out with their friends, electronic gadgets, and coffee.

 

Here are a few pointers to share with your kids as they get ready to head back to class;

 

Make a plan.  Help your student create a budget where he lists out what he needs versus what he wants for school.  If your kids are living away from home for the first time help them figure out how much they can afford to spend each month.

 

Pay bills on time.  It can be challenging to juggle studies, extracurricular activities, and social engagements while keeping track of financial obligations, but it is important to pay bills on time.  A missed payment could have a negative impact on credit rating, affecting the ability to borrow after graduation for something substantial like a car or a home.

 

Don’t treat a credit card like a debit card.  Nearly one-third of students wished they had used their credit cards more wisely while they were in school.  Remind your kids to only use their credit cards if they can pay off the balance in full at the end of the month.  Furthermore, taking cash advances from their card is not advisable as the interest starts accumulating the moment the transaction is complete.

 

Apply for scholarships, grants and bursaries.  Most post-secondary institutions offer a range of scholarships and bursaries to students with financial needs, not just for academic or athletic achievements.

 

Consider loan options.  It is important to consider how long it will take your student to pay back their student loan, and in what increments.  Make sure they consider the interest rate, any repayment grace periods, and the loan terms and conditions.

 

It is important to teach our kids to use credit wisely and build a positive credit history.   Lead by example and show them your own Cash Flow Plan; if you still don’t have one, give me a call.

 

Have a great weekend,

 

Tracey

 

 

 

 

Sources:  Advisor.ca, articles by staff on 08-13-13 and 08-16-13.MT08-18-15, TM08-2019