How to save money while studying in Canada

How to Save Money While Studying in Canada

Saving money as a student is something that is often overlooked, but it shouldn’t be. Many students may not realize this, but being careful with your money during your years in post-secondary education is crucial.

The younger you are when you start saving money, the better off you will be. However, keep in mind that it is never too late to start living a more frugal life.

Saving money isn’t as fun when you would rather spend it on things you want. However, similar to taking in your daily vitamins for a healthy life, saving contributes to a healthy future.

If you manage to keep $200 every month for 40 years in a retirement account that grows at 7%, you’ll enjoy more than half a million dollars. Fortunately, there are many ways to help you save money, from modern techniques to old-fashioned methods.

Saving money might seem a near-impossible task when you have bills to pay. For many of us, maintaining regular financial obligations like a mortgage, car payment, and groceries can leave little cash left over for savings. Even for those of us that have our finances under control, it’s always worthwhile to check if there are money-saving opportunities elsewhere.

Set a Budget

It’s hard to know how much you’ll be able to put away in savings if you don’t know how much money you’ll be able to put away in savings. Putting away too much too early can break have on your checking account and might require you to transfer money back into your checking and create a strain on your finances generally.

Use Cash

Remember that living off of a student loan is living off of borrowed money. That means you have debt – don’t go further into debt by over-spending.

Avoid using credit cards and use cash and debit only. This ensures that you are always aware of your money spending habits and that you do not spend more money than you have.

Use Public Transport

Now might be a good time to stop Ubering your potential savings away and start taking public transport. Better still walk or cycle. All those $10 trips add up to a lot over a month and even more over a year, not to mention the costs involved in owning a car. There might be some occasions when taking a taxi is an absolute must but when you can use public transport or walk to save on transport costs.

Groceries

Modify your shopping habits. At the end of every month, I am perennially shocked at how much of my income went toward food. At this point, I’ve lowered the limit about $150, but that’s only been possible by carefully modifying my shopping habits.

My most obvious tip is coupons, coupons, coupons! Look online before shopping trips to find coupons either on a store’s official website or on coupon sites like Retail Me Not. If you frequent a certain store, ask if there’s a membership rewards program you could join. You can also save by buying with a cashback card that offers good returns on groceries—just be sure to pay your balance off in full at the end of each month, lest you lose money due to credit card interest charges.

Finally, I always try to go for grocery shopping more often with less bought on each trip. This means I can scout for fluctuating sales more accurately, and it also means I’m less likely to throw out food gone bad. It’s extra convenient for those that live close to the store. Proximity to your grocer means you can walk and carry groceries home, saving on gas.

Buy Course Books Second-Hand

Course textbooks can be expensive, but luckily there's no need to purchase every item on your reading list. You can usually borrow set texts from the library whenever you need them. Only buy the most important books, and even then you'll be able to find cheap second-hand copies online or through your university. Sell them on when you're finished with them to recoup some of the costs.

Books aren't the only essential thing you can save on. Depending on how much your university charges for printing, it might also be more cost-effective to buy your printer. Just check to see how much printing you’ll have to do first.

Utilize Student Discounts

It’s important to keep in mind that there may be some extra cash in simply being an International student. Many businesses in your town may provide special rates and discounts if you present your student ID card before purchasing. If you don’t see a sign stating a business offers a student discount make sure you ask as you may be able to save a substantial amount on entertainment, food, coffee, and more. There are also additional discount cards you can purchase like the ISIC card that can offer even deeper discounts to students.

Get a Part-Time Job

A great place to start looking for a job would be in your school. There are many positions that schools offer to students. If you’re able to find a job within your faculty that is related to your field of study, even better!

There are paid and unpaid internships. Unpaid can benefit you in the long run, in terms of getting your foot in the door, and of course, paid jobs can help with living expenses.

If you get paid commission for your job, consider saving a portion of any extra-large commission cheques. It is so easy to blow money and then not know where it went. Use some of your extra-large commission cheques to create something you will remember—a nice retirement, a comfortable home, or something else that you would like to save for. Use your savings to create a reward for yourself that will last.

Avoid Joining a Gym

Of all the things to invest your money in, of course, good health should always be at the top of your list. But when it comes to a gym, lots of people pay a lot each month for something they hardly use. To save a little extra and instead find other ways to stay fit. Try and walk to places whenever you can. Take up running or cycling to get places just for fun Or if you have a little extra money, it can often be worth the investment to buy some weights and gym equipment for your place- especially if you have space. And if your housemates are interested- share the cost!

Tax-Free Savings Account (TFSA)

For most Canadians, these are the best way to save. A Tax-Free Savings Account is your little tax haven. A TFSA is an official setup that shelters your investment from taxes. A TFSA account allows you to put up to $5,500 per year into your tax shelter and not pay any tax on the interest that you earn or on the growth of your investment. Then when you take your money out of the TFSA, you don’t pay any tax either. So now you don’t have to sneak off to the Bahamas or the Cayman Islands to invest your money and protect yourself from taxes. The government has kindly brought the tax haven to you. Whether you are saving up for a car, a down payment for a house or your retirement, a TFSA is a smart way to save and invest.