There isn’t a class called money 101

Penney-Wise

By Leslie Penney

It’s not just your academic future that’s at stake at university; it’s also your financial future.

Attending university is a big financial responsibility whether it’s your money, your parents’ money, or the government’s. There aren’t any classes to guide you through this important aspect of university life, but with insight into the financial world, there will be smooth sailing ahead.

This column will explore several topics that relate to personal finances ranging from saving, budgeting, to preparing for the future when your education pays off and the real money starts to come in.

To start, let’s look at the basics when starting university or a new semester. For some students, going to university isn’t much out of the ordinary from high school; you don’t need to move out on your own, cook for yourself, and be responsible for just about every aspect of your life.

This is a far cry the experience of those who are required to move on campus or to a rental unit in order to be close enough to school.

Whatever your situation, at the very least you should design a budget for the semester. If your parents are footing the bill, know what they are responsible for and how much extra you receive each month to play with. If you are getting a student loan, don’t forget that the whole lump sum has to last you the entire semester.

When setting up your budget, factor in everything. You need to consider rent, food, utilities, text books, travel, entertainment, clothing, and so on. First, note how much you have to spend. Then consider how much you need to survive and how much you have left for the extras like clothing and entertainment.

As I mentioned above, unless you or your parents are footing the bill, this money is the government’s (or a bank’s) and you have to pay it back and then some, so make those purchases count. Are those designer jeans and shoes really worth it?

Don’t forget that your textbooks are one lump sum in the beginning. The easy way out is to go to the bookstore and purchase new books, but only do this if it is a new publication.

Sometimes, professors will allow you to use previous editions if there haven’t been many changes. When looking for textbooks, it’s certainly worth the time and effort to check the used bookstores, www.munbooks.com, and all the places around campus you see lists of books for sale.

You’ll save hundreds by purchasing used books; just make sure they are in good shape. In my experience, I bought as many used as possible, then in the beginning of the next semester sold them again, usually for the price I paid for them the previous semester.

Another idea is to share books with friends. If you’re in the same class and the book just complements the course notes, why buy two and let them collect dust? Just buy one and share it. Sometimes you can even borrow course materials it from the library.

It may take a little more time and planning, being prepared to shop around for everything. Before you go grocery shopping, make sure you check the weekly flyers for anything that is on sale.

And do go shopping hungry; you’ll end up spending more than you need to. Also, brew your own coffee. Your daily latte from a coffee shop can run you anywhere from three to five bucks, and it adds up.

By brewing your own you’ll probably save enough for a month’s rent later in the semester when you really need it.

Bottled water is the biggest hoax. It’s expensive (compared to the free stuff from home), and from my experiences, it all tastes like plastic. Do yourself a favour and get a reusable bottle.

When it comes to entertainment, a night downtown can quickly flatten your wallet. Especially when you first get your loans and you think you’re a rockstar. (We’ve all been there).

Better yet, stay at home and have a good time with your friends. The cost of drinking at home would only cover your cab ride for the night. Plus it’s less crowded; there are no line-ups, and no sweaty drunk people pretending to be your best friend.

And if you’re not a big partier, rent your movies or purchase them at Wal-mart; you can own a movie cheaper than you can go see the latest blockbuster.

There are also a lot of events hosted on campus. They are often free or very inexpensive and sometimes offer snacks as well. Don’t forget to check out the Sea-Hawks. This is a great way to have an inexpensive night out and support your team at the same time.

A great way to save a few bucks is to use your Student Saver card or get a Student Price Card. They provide discounts on everything ranging from food, clothes, entertainment, and so on. When it comes to entertainment or eating out, many places have student prices. Don’t be afraid to ask the person serving you if there are any discounts available.

If you are living in a rental unit, don’t forget to insure your stuff. The landlord has insurance in place, but this doesn’t cover your personal stuff if a fire starts or you are robbed; you have to take care of this yourself.

If you have a car, remember that your insurance from another town may not cover you if you have an accident while at university. Make sure you speak with your insurance representative so they can tell you if you are covered or not and what you need to do to be covered.

Penney-wise is a weekly column. E-mail your financial questions and column ideas to Leslie at lpenney@mortgagealliance.com

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