Budgeting

For many students, learning to manage finances is a big change. Budgeting takes a little practice, but it is a crucial skill for most university students. Learning to budget, and then following a few cost-saving tips will help to make university life a little easier.

Creating Your Budget

To help plan your budget, use a budget calculator or visit the CanLearn website for financial planning tools.

When planning your budget, keep the following points in mind:

• Consider your lifestyle.
  It is important that you create a budget that is not so strict that you are constantly breaking it, or so relaxed that you are always over-spending. Remember that although you want your budget to fit your lifestyle, you may need to adjust your lifestyle while at university to fit your budget.

• Set your goals.
  Your primary goal should be to successfully complete the academic year. Your secondary goal should be to enjoy all of the excitement that goes along with university life.

• Do some research.
  Talk to someone who can give you realistic budget estimates—especially if this is your first time making a budget. How much should you budget for groceries, your phone bill, a bus pass?

• Be realistic.
  If your budget shows you that you do not have sufficient funds to survive the year, you must consider other options to finance your education.

• Consider months that will have higher expenses.
  Remember to include extra expenses such as Christmas, moving and Mother’s Day in your budgets for the appropriate months.

• Differentiate between fixed and variable expenses.
  Your power bill will not change much, but your entertainment allowance can.

• Leave room for unplanned expenses.
  Your budget should include room for things such as cab rides and repairs.

Maintaining Your Budget

• Be flexible.
  You may need to adjust your budget at certain times due to unforeseen circumstances.

• Adjust your budget along the way.
  It takes time to determine your needs and track your spending habits.

• Find ways that you can gradually change your spending habits.
  Weed out non-essential items that won't drastically alter your lifestyle.

• Keep receipts and bank records.
  These important documents will help you to keep track of how you are spending your money.