You’ll learn many things at university that have nothing to do with your major. One of these things is how to manage your personal finances. Avoid the process being trial and error by following some basic tips to keep your spending under control and graduate with minimal debt.

1. Know How You’re Spending Your Money

It’s easy to spend too much on certain activities if you have no idea where your money is going. To avoid this, you need to track your expenses. You can do this by using a notebook, spreadsheet, or app — whatever you find the most convenient. Just make sure your method involves noting down your expenses immediately, before you have the chance to forget.

2. Set a Budget

Once you know where your money is going, you can create a budget to better manage your spending. Start with budgeting for the essentials, such as rent and utilities. Then, add expenses that are the same every month, like subscriptions. Allocate your remaining balance to different categories, such as food, personal care, and entertainment.

3. Create an Emergency Fund

Ensure you always have some money in an emergency fund. You should not touch this unless you need it — for instance, if you need to repair your laptop, return home unexpectedly, or pay a larger bill than normal. If you do need to use your emergency fund, replenish it as soon as possible by cutting down on your spending for the following month.

4. Build Your Credit Score

A healthy credit score will bring you many benefits after you graduate. For instance, it will improve the chances you’re able to rent the apartment you want, mean you qualify for better credit cards, and give you better rates on loans and mortgages. Easy ways to build your credit score include paying off your credit card balance in full each month and paying your bills on time each month. You can ensure you never forget a bill by automating the payments.

5. Find a Job

You may be limited in terms of how much you have to spend unless you’re working while at university. Search for a part-time job that fits around your classes, such as at a business on campus or with another student-friendly employer. You’ll also benefit from being able to put the work experience on your resume.

6. Save Money

Having a job won’t just mean more spending money and being able to pay off more of your student loans — you should also be able to start saving. This is important for meeting your goals after you graduate, especially if it takes you time to find a full-time job in your field. Bear in mind it can be motivating to have a particular goal in mind for your savings.

7. Apply for More Scholarships

You likely looked for scholarships when you were applying to university, but there’s no  reason for this to be the only time you search — after all, your eligibility may have changed or new opportunities may have opened up. When you’re home on break is an ideal time to search again.

8. Look for Ways to Spend Less

There are multiple ways to pay less for the things you need. For example, many businesses offer student discounts, including online stores — it’s always worth asking before you make a purchase. Admission to museums and recreational spots around you may also offer student discounts, which gives you plenty of affordable options for activities in your free time. Other ways to pay less include buying secondhand items (like textbooks, furniture, and vehicles), preparing more of your own meals, and investing in a coffee maker instead of buying a beverage on campus every morning.

You’ll also reduce your living costs if you move into affordable off-campus housing. Ottawa students can find a new home at THEO. We have private rooms, solo apartments, and shared rooms, meaning you can choose whatever suits your preferences and budget. Contact us now while we still have some spots available.