Getting started with budgets

As a student it’s very important to know how to budget. Take some time and write down on paper (or an excel sheet!) your budget for the next 12 months. Whether you’ve never had one before or you’ve used one in the past, create a new budget today that deals with the financial reality that you’re currently facing. Use the budget worksheet download below from the Ontario Securities Commission to review and adjust your budget.

We recommend you start with your income. In the Income section, add all incoming funds into your account. Include your income from your full-time or part-time job, monetary support from your family, and all scholarships and bursaries that you have received.

Then, get very detailed and specific with your expenses:

1. Start with your fixed expenses, these are costs that are the same month to month.

• A fixed expense can be rent and/or mortgage, car payments, insurance, internet, cell phone.
• A fixed expense can also be debt payments you make every month.

2. Add ongoing expenses that can change month to month but are necessary.

• Ongoing expenses can be items like groceries, utility costs, clothing and transportation.

3. Finally add other expenses that you may have but are not common.

• Other expenses can be medical and prescription costs, fun activities like seeing movies and eating out or travel to visit family.

Remember that some expenses may only be applicable for the months you are at school. Make sure you add those in but look at the annual costs as the final number. To get the final number, multiply the monthly amounts by the number of months you'll have the expense.

Finally, take your yearly expenses and subtract them from your yearly income. Here, you will find out how much debt (or surplus) you are accumulating annually.

Download Student Budget Worksheet

Managing your debt

After filling out the student budget worksheet you may find you are spending more than you’re making. In many cases this is expected, as most students in Canada graduate with some student debt that they pay off after they start working full time.

If you find your debts are increasing, this may be a good time to look at ways of cutting down on your expenses, and strategically paying down your debt. There are a few things you can do to manage your debt:

1. Pay your bills on time
2. Make a monthly bill payment schedule for yourself
3. Make the minimum payment on your debt
4. If you have a lot of debt, pick which one to pay off first (the one with the highest interest rate is the best place to start!)
5. If you need help, reach out for support through the financial aid team at the college.

Saving as a student

This may seem like a big ask, but if you can, try to save some of your income as you reduce some of your expenses.

If you need some ideas on how to save money we have some quick tips for you:

Have an emergency fund.

Experts say that everyone needs an emergency fund. This can be $500 that you set aside in an account you don't have access to on a regular basis. So if anything goes wrong, you have something you can fall back on for necessities.

Establish a budget.

The best way to establishing a budget is to figure out how much income you have coming in, and what expenses you have coming out on a regular basis. And luckily, we showed you how to do that in the section before this one!

Budget with cash and envelopes.

Most of us have trouble with overspending. If you do too, try the envelope budget system. This means that your goal is to pay for as much as possible with cash. Keep the cash in separate envelopes for different budget categories. It’s a great way to easily visualize how much money you have left, and some people find that paying for everything with cash rather than a credit card helps control spending.

Save your coins.

Really. Putting aside just $1 a day, over a year, will get you over halfway to an emergency fund.

Plan your meals in advance and stick to a list while grocery shopping.

Did you know that if you shop with a list, and buy little else, you will end up spending less money than those who decide what to buy when they get to the store?

Save time and money by doubling the recipe.

Next time you make your favourite meal, double the recipe and freeze the leftovers for another day. That way you can get two meals out of one and you'll end up using the ingredients more efficiently with less waste!

Here are some of our top budgeting tips, money management ideas and information about how to get more help:

Use a budget

Create a realistic budget that also gives you a little money for fun… yes, fun! Review it each month to make sure you can stay on track and have time to adjust it as needed.

Needs vs. Wants

The typical recommendation for a student budget is the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment. If you need to make amendments to your budget, needs are far more important than wants.

Cut down on the extras

Look for ways to cut down on expenses, such as finding a cheaper phone plan or scaling back on your features, avoiding eating out more than necessary or using student discounts for your transportation. It all adds up and every little bit counts.

Find deals

Take advantage of deals, sales and special offers when you can. Some companies or organizations offer student discounts, so make sure to do your research or just ask! Some examples include the TTC, GO Transit, museums, some theatres, Microsoft, Apple, some grocery stores, etc.) You can also get a Toronto Public Library card for free, which not only gives you access to books, music, movies and resources but also discounts around the city.

Part-time work

Look for on-campus work opportunities to save time and money… these usually work around your class schedule, not to mention the resume boost it can be!

Use credit wisely

Avoid credit that you can’t afford. Putting small items on credit cards repeatedly can add as much as 50% to the cost of the items once interest and fees are added on!

A tip from experts states you should try not to spend more than 30% of the credit you have available to you based on your credit limit. For example, if your credit limit is $1000, don’t spend more than $300 in a month.

The pandemic has taught us to be more tech savvy and stay on top of things in a digital world and banking is no different. We can pay for most things online or using contactless solutions and this includes things like your tuition fees and paying for books. If you are shopping online for any item make sure the site you are using has the https before the website name. The s indicates the site is secure to use. Never use a site that you are unfamiliar with.

Because you are a student, you are also eligible to receive discounted banking plans and benefits from most Canadian banks. Be sure to check out how you can save on your banking fees. You can select a bank based on your needs and the different benefits you can receive by using this resource to compare your options.

At GBC the safe way to pay your fees is through STU-VIEW, and you can purchase your textbooks and materials through the secure Campus Stores website.

For more ways to protect yourself online, check out the Digital Citizenship Hub.

In module 3, you learned how to manage your finances as a student, use some strategies to help your money go further and explore resources available to help you succeed.

In the next module, you will learn about all the ways that you are supported at GBC. And of course, one of the ways we support you is in helping you get a job (on or off campus) so you can make some extra money while you're studying. It's really simple through GBCareers. This exclusive online job-posting system connects you with employers to:

1. Find your dream job or something short-term
2. Customize your job search to your academic program
3. Upload and customize résumés and cover letters
4. Register for career events and workshops

You can register on GBCareers to get started TODAY. And if you have any questions, you can email Career Services.