How to financially prepare for your winter semester in Canada
Credit to Author: Amit Brahme| Date: Thu, 27 Jan 2022 01:40:24 +0000
Over the last few years, there has been a dramatic increase in international students enrolling from South Asian countries such as India – countries known for their mild climates.
In addition to coming face-to-face with a brisk Canadian winter, they may be in for a surprise at the unanticipated expenses that go along with it. In fact, a survey by RBC shows that 42 per cent of international students are overwhelmed when it comes to money and need help, and 41 per cent admit they struggle with creating and maintaining a budget.
Unexpected Winter Expenses
Many international students may be unprepared for the frosty temperatures as they arrive in the middle of a Canadian winter, and one of the first things they should look to buy is a warm winter coat. Set aside a small budget and save money by searching for deals on resale sites such as Facebook Marketplace and Kijiji, or visit local thrift shops for bargain investment pieces. A winter coat is something that can (and should) last for years – and oftentimes you can find items in new, or nearly new, condition.
Students used to warmer climates may not be familiar with central heating (or radiators, for older residences). Some buildings or homes may have this included in the monthly rent, while others may charge a separate fee which ranges based on usage and time of day. Heat is essential in the winter and should be built into your monthly budget. In the middle of winter, heating costs can climb to over $100/month, and will decrease once spring – and the warm weather – arrives around April and May.
Tips for financial success on an international student’s budget
It’s important to understand and plan for expenses to ensure you have enough money – here are some tips to help you handle your finances successfully:
- Speak with a financial advisor – A financial advisor is often a good starting point when you arrive in Canada, as opening a bank account is essential. Financial advisors can recommend accounts that cater to your needs and include valuable, money-saving features such as no monthly account fees. A financial advisor can also direct you to the appropriate banking solutions that will help prepare you for a successful financial future.
- Build a credit history – A good credit score is often needed for many things – from renting to getting a cell phone or a loan – even as a student. Opening a credit card will help to build your credit score, but be sure to pay off the bill each month to avoid late payment fees and penalties.
- Enhance your financial literacy – According to the RBC survey, international students hold many misconceptions when it comes to finances. For example, 26 per cent know a credit score is important, but don’t know what it is, and 58 per cent believe paying the monthly minimum on a credit card means they don’t pay interest. Check out resources such as the McGill Personal Finance Essentials, a free online program, to learn how to create a budget, manage your finances and save for the future.
One of the most important things is to make sure you know your numbers and cash flow, which will help you stay on track with spending and even save some money. Having a proper budget and tracking your expenses will help provide insight into your spending patterns, keep spending in check and avoid potential student debt.
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