Going back to school this fall? CIBC offers tips to help students focus on their studies, not their finances
A solid plan can help students navigate the financial challenges of student life TORONTO, Aug. 6 /CNW/ - As summer draws to a close and students head off to college or university, many may be feeling a little anxious about how they'll make their finances work, especially those students living away from home and managing their own day-to-day expenses for the first time. Recent industry research indicates that 40% of students aged 18-25 do not feel well informed about personal financial products, compared to just 25% of all Canadians who felt the same. In addition, only 47% of students aged 18-25 keep careful track of their finances, suggesting that more than half of these students could be taking a more active role in managing their money(1). "It's never too early to start thinking seriously about your finances and setting goals for yourself, especially for students who may be taking ownership of their finances for the first time," said Colette Delaney, Senior Vice-President of GICs, Deposits and Payments for CIBC. "Money problems can distract students from getting the most out of their education, which is why it's so important for students to have a plan in place to help them take charge of their financial goals before they start the school year." Students can build their financial knowledge and establish a good foundation for themselves by following a few basic financial planning steps:- Identify your short and long term goals. Short term goals might include a Spring Break trip or a new laptop, while your long term goals may include a downpayment on a car for after graduation. Determine what you want to accomplish within a timeline and work it into your financial plan to help make that goal a reality. - Make a budget. Take a few minutes to complete a budget using the online budget calculator at www.cibc.com/ca/student-life, which will help you determine all of your monthly variable, one-time and shared costs. By going over this budget regularly and making adjustments as you go, you can identify opportunities to cut costs, curb unnecessary spending and start saving. - Minimize your everyday banking costs. You have enough expenses to worry about as a student, and everyday banking shouldn't be one of them. A simple way to cut costs is to open a bank account with CIBC Advantage® for Students benefits. Full-time students attending an accredited university or college in Canada can open a CIBC bank account with free everyday banking (including free withdrawals at CIBC bank machines), no monthly fees and no limit on the number of monthly transactions. - Avoid ABM fees. Save money by finding out where your bank's nearest ABMs are and sticking to them for all your transactions. Using other bank or 'white-label' ABMs will incur additional service fees. With 1400 ABMs within 1 to 2 kilometres of 180 colleges and universities across Canada, CIBC clients are never far from their funds. - Establish credit and manage it well. Start building your credit history by obtaining the right kind of credit card and using it responsibly. Ideally, you should pay your balance in full each month, and avoid temptation by leaving your card at home or using it for emergencies only. A credit card like the CIBC Classic Visa Card for Students will give students convenient access to credit with no annual fee. - Start saving. Many students keep all of their money in just one account which they use for all of their transactions, but it's a better idea to keep short-term savings and long-term investments separate to earn a higher return on your savings and to avoid the temptation of dipping in. Consider a product to help grow your savings like a fixed-term GIC, or build your savings through small monthly contributions using a Regular Investment Plan."Do a little homework to determine where you stand financially before you start classes, and what you need to do to walk out of your last exam in the Spring in great financial shape," said Delaney. "Having your finances in order allows you to stay focused on your studies and get more out of your student experience, knowing that you have a plan in place and are building a foundation for the future." More useful financial planning, calculators, product information and articles about student life written by students can be found at www.cibc.com/ca/student-life. CIBC is a leading North American financial institution with nearly 11 million personal and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com. ---------------------------- (1) Forrester Research, Inc.: 2008 North American Mail Benchmark Survey, qb14.
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For further information: Doug Maybee, Director, External Communications and Media Relations, CIBC, Tel: (416) 980-7458, firstname.lastname@example.org