Little Things – Big Difference!

By Martha Blythe

By making money-wise decisions on a daily basis students can avoid overwhelming debt and emerge from post-secondary education with little or no debt. Begin with where you choose to go to school and where you choose to live. Tuition and housing will be your greatest expenses so reducing those from the beginning is a strong start. Books, food and daily expenses such as bus-fare, laundry, clothing, phone bills, are the next area to focus your attention. Entertainment and transportation expenses are great places to save a buck. Access credit and loan funds for emergencies only! 

Some costs are unavoidable: tuition, books, housing and food are the big ones, but also have the largest opportunities to save money. Let’s examine expenses one area at a time and keep track of the difference small decisions can make on the bottom line.

$20 per day on housing by living at home: Living with your parents can allow you to save money on rent, monthly bills for heat and hydro, laundry, toiletries, phone, food and electronics. Although many parents ask adult children to cover a portion of their room and board; living at home, if at all possible, can save hundreds of dollars per month. If living with Mom and Dad isn’t an option, consider finding a roommate or two in order to share expenses. Living close to your parents will also reduce the travel expenses of going home to visit.

$3 per day on tuition by attending a slightly less expensive school: Tuition between equally prestigious schools could be the difference of $1000 or more a year and thousands over the course of your education.

$1 per day on books: Buying used books can save you up to 50% and many school bookstores help facilitate this process.

$2 per day on coffee by having your own coffee maker: A coffee maker will pay for itself in the first month. Get one with automatic shut-off so you don’t have to remember.

All of this adds up to $26 per day = $9490 each year!

Other expenses such as transportation, laundry, toiletries, clothing, entertainment, and phone bills can be a great place to cut back spending.

Debt is expensive! Understanding how costly debt can be is a great incentive to stick to cash.  http://www.mathsisfun.com/money/compound-interest-derivation.html

Now that we’ve gained control over the money going out, let’s examine the money coming in. Look for work opportunities that can offer more than a pay-cheque.

Get discounted tuition fees:  Employees of universities and colleges often have access to discounted tuition fees.  Start looking for next year’s job opportunities today.

Earn while you learn: Co-op positions are often paid positions where you can earn money and new skills.
Build a competitive resume: Part-time and summer jobs where you have the opportunity to develop new skills such as software proficiency, typing and language development will give you a competitive edge in the future when applying for jobs.

Get paid to study: Some jobs, while not challenging, or with few benefits can provide the opportunity to study on company time.

Smile: Service industry jobs provide the opportunity to receive tips and can increase your total income.

Look forward to the benefits of all of your efforts! Not only will you have the education you need to help you secure the job of your choice, you will also be free to spend your hard-earned pay-cheques on what you want rather than repaying debts you racked up years ago. You will thank yourself for making the little decisions you made along the way that have made a big difference.