Tips on how to save while in school, stretch your dollars and avoid debt
TORONTO, Sept. 8, 2015 /CNW/ - More than 500 students are in classrooms across Canada today after receiving scholarships or bursaries from CIBC (TSX: CM) (NYSE: CM). This funding, along with the nearly $10 million that CIBC has committed to student tuition over the next five years, are part of the bank's commitment to helping Canadian youth get a head-start in life.
"If you're a freshman living away from home for the first time or returning to college or university, the question is, do you have a budget to make it through the school year?" says Jamie Golombek, Managing Director, CIBC Wealth Advisory Services. "One of the biggest challenges for students is learning to budget for everything. It's a skill that's particularly important for students on scholarships or bursaries because they may not have the support to fall back on if they run out of money."
"Learning how to budget your money is often not a skill that students have been taught and like any skill, it takes practice, tips and discipline to follow," he says.
Worrying about money is the No. 1 concern for post-secondary students heading back to school this year, CIBC found in a recent poll. Nearly half of post-secondary students say they are worried how they will pay for this year's tuition and living expenses or repaying their student loans and school-related debt. More than a third expect to graduate with more than $25,000 in debt.
A separate CIBC survey showed that when students ran out of money during the last school year, they phoned mom and dad to bail them out.
Mr. Golombek offers five tips for students on managing money and stretching your dollars further:
- Carefully consider your "needs versus wants" and stretch your dollars by knowing when to say "no" on everything from lattes, tote bags, designer apparel to college or university club T-shirts or gear. Prioritize your non-essential expenses and consider your must-haves only after you start school and can assess if these must-haves are truly school necessities.
- Create a budget: Map out your streams of income such as from parents, loans, part-time jobs, scholarships, bursaries or grants and categorize your monthly expenses. Keep tabs on your Internet usage and telecom bills. Many financial institutions such as CIBC provide a free student budget calculator that will help you put together a budget.
- Manage your cash flow: Don't spend more than you have. Use online or smartphone apps that make managing your money easy and convenient and keep you from missing payments and avoiding late penalties.
- Student discounts: Look for student discounts that can be used on and off campus for discounts for clothing, travel, lifestyle, sports, and food.
- Borrow responsibly: Using a credit card provides added financial flexibility but remember it's not free money and you should charge only what you can afford to pay back. Keep your credit limit low to keep yourself from spending money you don't have.
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. CIBC and our employees are committed to the social and economic development of our communities, with a focus on Kids, Cures and Community. In 2014, CIBC supported over 420 communities across Canada, contributing more than $42 million to 1,780 charitable and non-profit initiatives, including the Canadian Breast Cancer Foundation CIBC Run for the Cure, the CIBC Children's Foundation and United Way. You can find other news releases and information about CIBC on our corporate website at www.cibc.com/ca/media-centre/.
SOURCE Canadian Imperial Bank of Commerce
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