Here’s how to manage money well this school year

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If you learn how to manage a tight budget while in school, you should be able to master budgeting for the rest of your life, writes Lesley-Anne Scorgie. Here are a few tips:

A budget is a plan for your money and it needs to be written out. I recommend you crack open a Google sheet and list out your expected income followed by expected expenses.

For expenses, you’ll want to include your living expenses, cellphone bill, transit pass, groceries and otherWhen you subtract your expenses from your income, you’re aiming for a positive number. If it is negative, that means you’re spending more than you are bringing in and you’ll need to cut back.Set a budget amount for fun, such as $150 per month. Having the money set aside should help prevent overspending. Spend your fun money however you want; parties, travel, meals and more.

Tracking spending is super easy, too. Almost every financial institution in Canada has a notification system so you’ll receive a notification of all transactions going through your bank account. I love this because it brings awareness to your spending and you can check your spending against your budget to see if you’re on track.

Join free money groups on social media. You’ll learn money saving hacks, meet other students and get inspired to save money for the future.Did you know students who work to pay for part or all of their schooling generally get better grades and are more likely to be hired after graduation? They also experience less student debt.

 

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ynab all the way.

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