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Crushed by rising costs? Here are 6 proven ways Canadian students can save big and stress less at university

Going to university is financially stressful, but with the right approach to budgeting combined with smart spending habits, you can ease the stress and figure out a realistic budget.

In 2023, the average undergraduate tuition in Canada was $6,834 per year, and when you add housing, food, transportation, and books, the typical student spends between $20,000 and $25,000 annually, according to data collected from Statistics Canada.

To help, here are six tasks every university student should tackle when heading off to school. Consider these the must-tackle financial tools to help you stay focused on your studies.

1. Create a detailed budget

Knowing how and why you spend money is the first step towards building a budget.

To start, you need to systematically identify what you spend money on and why. If you’re not sure how to start, consider adopting one of the most popular (and realistic) budgeting strategies known as the 50/30/20 rule. According to this budgeting strategy you spend:

And this is just a start. An even more detailed budgeting approach is the Japanese method known as Kakeibo. Created by journalist Motoko Hani in 1906, Kakeibo breaks your purchases down into four buckets (number two and three are combined):

In Canada, fintech tools like KOHO and Wealthsimple Cash are popular because they combine budgeting with rewards. Many banks, including RBC and CIBC, also offer free money management apps for students.

For those who prefer using digital tools, consider using a budgeting app. Options include: Goodbudget, PocketGuard, or You Need a Budget (YNAB). Budgeting apps help you keep track of what you spend and some, like YNAB, offer insight into ways to save. If you want to try it out, consider taking the YNAB app for a test. For new customers, try YNAB free for the first 34 days — according to YNAB statistics, customers save an average of $600 over the first two months.

2. Apply for scholarships and grants

According to Universities Canada, more than $1 billion in scholarships, grants, and bursaries are available annually across the country. Provincial programs like StudentAid BC and Alberta Student Aid also offer both needs-based and merit-based assistance.

As soon as possible, look into scholarships and grants — free money that can help reduce financial pressure.

In general, scholarships are awarded based on merit, while grants typically come from government bodies, private foundations, corporations or university departments. In almost all cases, you need to confirm you are eligible for the scholarship or grant and adhere to the application requirements, which can include writing an essay or providing proof of eligibilty. The great part is that scholarships, grants and bursaries don’t need to be repaid, unlike student loans.

Here are some of the best places to find these free funding opportunities:

Bursaries are another option for cash strapped students. They’re usually awarded based on financial need rather than academic achievement. Most universities and colleges have web pages dedicated to bursaries (e.g. the Ontario College of Art and Design Bursary program).

3. Plan and apply for student loans

Student loans can be a scary prospect, but with proper planning and budgeting, this can be a smart use of borrowed funds.

There are three main types of loans to help cover costs.

  1. Government student loans (like OSAP, the Ontario Student Assistance Program)
  2. Student line of credit through a bank
  3. Personal loans or bank student loans

4. Use a student bank account

As a student, you’ll need a bank account — a place to put money that’s used to pay tuition, daily living costs and even rent. The good news is that being a student often means getting access to great banking promotions.

Many banks offer special chequing and saving account deals specifically for students. Key bonuses include unlimited transactions, zero monthly fees and boosted interest rates for any money stashed in the account. Extra perks include loyalty points, discounts at specific stores and even bonus giveaways, such as an iPad or headphones.

For example, Scotiabank’s Student Banking Advantage Plan offers unlimited debit transactions with no monthly fees, while TD’s Student Chequing Account includes free Interac e-Transfers.

Find a great student chequing accounts or consider other money management accounts, such as online banks.

Snag a student credit card

Student credit cards offer better cashback rates, free transactions and sometimes travel rewards. But that’s not the biggest advantage of a student credit card. By getting a credit card, you can start building your credit history and earning a strong credit score. A good credit score gets you access to lower interest rate loans and higher advances on lines of credit and credit card balances.

While a student credit card helps build a credit score, be aware that the average Canadian credit card interest rate is around 20%. Paying the balance in full each month avoids costly interest charges.

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5. Find affordable textbooks and supplies

The price of a textbook is one of the biggest shocks new university students face. It’s not unheard of to spend hundreds of dollars on books.

Make sure to:

For instance, students in BC can check out BCcampus OpenEd which provides free open textbooks across multiple disciplines, saving students hundreds of dollars per course. Plus, check in with your alumni organization or higher level students in the same program. Sometimes you can get free textbooks this way.

6. Create a meal plan

Food insecurity is a growing issue. A 2021 survey found that 56.8% of Canadian post-secondary students experienced some level of food insecurity. While rolling out of bed and going straight to class might mean a $3.99 blueberry muffin. Do that every day for a week and you’re looking at $20 on just muffins. Since food can be a major expense without the right preparation consider meal planning, student food banks, and discount grocery apps like Flashfood — all of these strategies can help ease the strain.

Other strategies include:

Completing these tasks will help students manage their finances effectively, allowing them to focus on their studies without the stress of accumulating debt.

Don’t panic: keep calm and budget on

Being a student is exciting. New school, new people and a chance to expand your horizons. But the experience can be mired with the stress of finances. Fortunately, there’s plenty you can do to take control of your time at university.

By creating a budget, tapping into scholarships, and making smart spending choices, Canadian students can lower stress and focus on what really matters — their education and future. For more resources, check out the Government of Canada’s Student Financial Assistance hub: https://www.canada.ca/en/services/benefits/education/student-aid.html.

Sources

1. Wikipedia: Hani Motoko

2. Wikipedia: Kakiebo

3. Toronto Metropolitan University: Student Financial Assistance

4. University of British Columbia: Student Life

5. Government of Canada: Student Aid

6. Ontario Collage of Art and Design: Bursary Program

7. Government of Ontario: OSAP: Ontario Student Assistance Program

8. Campus Ontario: Open education resources

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.