The Budgeting Tips for International Students in Canada
If you want to be one among the international students in Canada, it’s high time you knew what’s gonna be discussed for the next couple of minutes. Budgeting tips for your finances while living as an international student in Canada is one of the important skills you must possess. Because it not only is going to save you while in Canada but will help you in the long run to know your dos and don’ts while making financial decisions or managing finances.
I believe this piece of content will help you for sure while you step into Canada as an international student. Buckle up!
Managing finances as an international student in Canada can be seemingly challenging but with proper plan, it just a cake! There are several budgeting tips that can help.
Create a Budget if you’re one of the international students in Canada
Outline your expenses (tuition, rent, food, transportation, etc.) and income sources (part-time job, scholarships, etc.). The earlier you realize that you need to keep an eye on the money coming in and going out of your account, the easier it will be for you to control your spending and save your money that was hard-earned.
Keeping track of your spending is not as difficult as it may seem. To track your spending, you can make use of a basic excel sheet and a manual procedure. Additionally, there are helpful Excel sheet templates for recording expenses available online, and also there are a few budgeting apps that can automate this process. Intuit’s budgeting app called mint will help you track all the transactions that you make.
Have an eye on your spending habits
Being able to control your spending patterns is essential to establishing a solid financial foundation. Make sure you adhere to the well-known 50-30-20 budget rule, which lets you divide your expenses into three primary categories: 20% goes toward debt repayment and savings, 30% goes toward wants, and 50% goes toward needs.
🔹Get a credit card
Building a solid credit history in Canada is crucial because, through an analysis of your credit card, loan, and line of credit repayment patterns, lenders can determine how likely you are to make your payments. Getting a credit card is the simplest way to start accumulating credit history.
For students, a free cash-back credit card is the eighth wonder of the world when it comes to credit cards. It’s amazing that some credit cards in the cutthroat Canadian banking industry now provide up to 4% cashback on purchases. However, it is imperative that students plan how to optimize this return on investment.
Start by making purchases at retailers affiliated with those banks or credit cards. The first purchases that are eligible for cashback are those ones.
Second, make full use of all the credit card benefits. For instance, savings on travel and lodging, or complimentary auto insurance.
Make your repayment in time to avoid high interest rates and penalties getting imposed.
🔹Explore Student Discounts
Take advantage of discounts offered to students on transportation, entertainment, and various services across Canada.
🔹Cook at Home
Eating out frequently can be expensive. Cooking meals at home is not only cost-effective but also healthier.
Are you a caffeine person? One of the largest money wasters is said to be Coffee. It is a major financial waste, claims investor and entrepreneur Kevin O’Leary, better known as Mr. Wonderful on the hit ABC TV show Shark Tank. Rather of paying $5 for a cup of coffee at a large coffee chain, he would rather prepare his morning coffee at home, where it costs him an average of 18 cents per cup. Start brewing coffee at home and become frugal!
🔹Use Public Transportation or Student Passes
Public transport passes or student discounts for transportation can significantly reduce commuting expenses.
🔹Part-Time Work for international students in Canada
Explore part-time job opportunities on-campus or off-campus, keeping in mind the restrictions on working hours for international students.
🔹Save on Textbooks
Consider buying second-hand textbooks, renting, or borrowing from the library instead of purchasing new ones.
🔹Health Insurance for international students in Canada
Understand your health insurance coverage as an international student. In Canada, some provinces provide health coverage for students, but it’s essential to know the details.
Set aside some money for unexpected expenses or emergencies. Make sure you have your health insured and have sufficient amount saved in hand to meet unforeseen expenses, if any!
🔹Seek Financial Guidance
Universities often have financial advisors or offices that can provide guidance on managing finances as an international student.
I believe this piece of content about budgeting tips for international students would have helped you in getting a picture of financial management while studying in Canada. If you are seeking guidance in your study visa application, connect with CanApprove. Our overseas education coordinator will help you in all aspects of your abroad study process. We are a click away. Connect now!
Thanks for reading… 😊