College Budgeting 101
Welcome to
freedom.
No more Mom and Dad watching over your shoulder and monitoring every move! Stay up as late as you want, sleep in, skip all of your classes, drink The Out Back Shack dry if you are physically able to, and be broke and out of money by the second week of classes. All of this is possible if you wish this to be your crowning achievement and glory.
Budgeting is one of those things that you hate to deal with when you first hit college: but it is one of the most important words you need to learn when you hit this campus. Each year, you should prepare a budget, which lists all reasonable expenses for attending Fanshawe College. Budgets will include direct education expenses (tuition, fees, books, and supplies) and indirect education expenses (e.g. room, board, personal, medical, and transportation).
So what exactly is budgeting?
Budgeting is quite simply the art of balancing the amount of money you have coming in (your income) with the amount that you need to spend (your expenditure). By drawing up a budget plan you can come to a better understanding of your situation and thus make informed decisions about your financial needs.
Because budgets include many categories and will be affected by many different things during the year, you will probably spend more or less than you originally planned. For example, you may only spend $600 for books and supplies even though the amount budgeted are $1200 for the year. However, you may pay more for your rent and utility bills than you originally budgeted. The amount you spend, except for tuition, ancillary fees and books, is up to you and depends on the lifestyle you choose to live and the funds you have available to spend.
A guide to assist you in developing these budgets can be obtained from the Financial Aid Office in Room E1003. Most financial aid programs such as OSAP do not keep up with the rising costs of college, so it is important for you to manage what money you have wisely -- both this year and next, whether you are a co-op student or not.
The lowdown on landlords and roommates
Some students like to live off-campus by renting an apartment, room, or a house. Sharing with one or more roommates is a great way to keep down your living expenses. Here at Fanshawe you can check outside F2010, down by the Southwest Café or the FSU website's Buy & Sell page to see what housing is available. You should also check this student newspaper's classified ads for rental accommodation for people looking for roomies. A word of caution, though: don't move in and sign a lease for a year unless you are sure you like the people in case they turn out to be horrible just because it is right conveniently close to the school. Be selective: it could turn out to be worse than Survivor with Richard running around naked all of the time!
Some landlords may require you to fill out an application. Once they agree to rent to you they usually request first and last month's rent. Remember that security deposits are illegal in Ontario; so don't let them fool you.
Make sure you find out if utilities are included with the rent - and get it in writing. If they are not, then remember to budget for them. Also remember that a one-year's lease is generally for twelve months. School is usually eight months, unless you are on a fast-track program. If you move out at the end of eight months, you still owe the landlord for four months rent and he is not going to forget that. You are then talking about subletting or living there for the summer or paying for an empty apartment, as you are now a responsible adult with a lease.
Make sure all of the roommates co-sign the lease and contribute to any deposits. It's also a good idea to have a written agreement that spells out each person's financial obligations and the sharing of chores. Talk to your roomies: if one has a boyfriend or girlfriend who starts to stay over all the time, have it in writing that that person's mate starts paying a percentage of the rent so you don't get ripped off if they are basically living there full time.
Bills, bills and more bills
If utilities are not included with your rent, a one-time installation fee may be charged - same with a new phone line. If you have never had a phone before, they may ask for a deposit. If you have a cellular phone with a good package (i.e. unlimited daytime calls), you may wish to stick to that phone and that phone alone.
Pre-paid long distance cards are amazing: five to seven cents a minute anywhere in Canada or the USA anytime of the day and are available in the Fanshawe Bookstore. CallMe Cards are the best way to call Mom and Dad, as it is like calling them collect but you don't pay the $1.75 connection fee. Call 310-Bell to arrange one --- they get the charges on their bill.
If you can bring furniture from home into an unfurnished accommodation, that would be great. For good furniture deals, try garage sales, Goodwill, Value Village (Clarke and Dundas Street) or Salvation Army, or other second hand furniture shops.
Turning lights off, fixing dripping taps and turning the heat down low with a warm blanket and wearing sweats or sweaters are good ways to keep the utility bills down. (No electric blankets --- unless utilities are included — they suck up so much electricity it is staggering!)
Insurance is something to consider if you own property of value including furniture, appliances, a computer, electronics, etc. Before buying insurance, check with your family to see if their home insurance policy can be extended to cover your possessions.
Err on the side of things costing more than you think. Review your budget on a monthly basis. It's not cast in stone; it's intended to help manage income and spending. Catch and correct bad spending habits, and pat yourself on the back for the good ones. It may sound cheesy, but these are good lessons to learn for life.
It takes upon average, six months to find a job after school. You also have to start paying back OSAP six months after you finish school and bankruptcy is not an option
There are bursaries and scholarships out there that people never apply for.
The staff in financial aid is a plethora of information and wonderful people to boot. Talk to them about budgeting if you want assistance or any information about financial aid in general. I am not saying that budgeting is easy: it's not. It is time to pull up our socks and think hard about how we want to spend these years at Fanshawe. Remember to have a good time, but in the end you don't want to spend a decade or more paying for it.
Budgeting tips
No more Mom and Dad watching over your shoulder and monitoring every move! Stay up as late as you want, sleep in, skip all of your classes, drink The Out Back Shack dry if you are physically able to, and be broke and out of money by the second week of classes. All of this is possible if you wish this to be your crowning achievement and glory.
Budgeting is one of those things that you hate to deal with when you first hit college: but it is one of the most important words you need to learn when you hit this campus. Each year, you should prepare a budget, which lists all reasonable expenses for attending Fanshawe College. Budgets will include direct education expenses (tuition, fees, books, and supplies) and indirect education expenses (e.g. room, board, personal, medical, and transportation).
So what exactly is budgeting?
Budgeting is quite simply the art of balancing the amount of money you have coming in (your income) with the amount that you need to spend (your expenditure). By drawing up a budget plan you can come to a better understanding of your situation and thus make informed decisions about your financial needs.
Because budgets include many categories and will be affected by many different things during the year, you will probably spend more or less than you originally planned. For example, you may only spend $600 for books and supplies even though the amount budgeted are $1200 for the year. However, you may pay more for your rent and utility bills than you originally budgeted. The amount you spend, except for tuition, ancillary fees and books, is up to you and depends on the lifestyle you choose to live and the funds you have available to spend.
A guide to assist you in developing these budgets can be obtained from the Financial Aid Office in Room E1003. Most financial aid programs such as OSAP do not keep up with the rising costs of college, so it is important for you to manage what money you have wisely -- both this year and next, whether you are a co-op student or not.
The lowdown on landlords and roommates
Some students like to live off-campus by renting an apartment, room, or a house. Sharing with one or more roommates is a great way to keep down your living expenses. Here at Fanshawe you can check outside F2010, down by the Southwest Café or the FSU website's Buy & Sell page to see what housing is available. You should also check this student newspaper's classified ads for rental accommodation for people looking for roomies. A word of caution, though: don't move in and sign a lease for a year unless you are sure you like the people in case they turn out to be horrible just because it is right conveniently close to the school. Be selective: it could turn out to be worse than Survivor with Richard running around naked all of the time!
Some landlords may require you to fill out an application. Once they agree to rent to you they usually request first and last month's rent. Remember that security deposits are illegal in Ontario; so don't let them fool you.
Make sure you find out if utilities are included with the rent - and get it in writing. If they are not, then remember to budget for them. Also remember that a one-year's lease is generally for twelve months. School is usually eight months, unless you are on a fast-track program. If you move out at the end of eight months, you still owe the landlord for four months rent and he is not going to forget that. You are then talking about subletting or living there for the summer or paying for an empty apartment, as you are now a responsible adult with a lease.
Make sure all of the roommates co-sign the lease and contribute to any deposits. It's also a good idea to have a written agreement that spells out each person's financial obligations and the sharing of chores. Talk to your roomies: if one has a boyfriend or girlfriend who starts to stay over all the time, have it in writing that that person's mate starts paying a percentage of the rent so you don't get ripped off if they are basically living there full time.
Bills, bills and more bills
If utilities are not included with your rent, a one-time installation fee may be charged - same with a new phone line. If you have never had a phone before, they may ask for a deposit. If you have a cellular phone with a good package (i.e. unlimited daytime calls), you may wish to stick to that phone and that phone alone.
Pre-paid long distance cards are amazing: five to seven cents a minute anywhere in Canada or the USA anytime of the day and are available in the Fanshawe Bookstore. CallMe Cards are the best way to call Mom and Dad, as it is like calling them collect but you don't pay the $1.75 connection fee. Call 310-Bell to arrange one --- they get the charges on their bill.
If you can bring furniture from home into an unfurnished accommodation, that would be great. For good furniture deals, try garage sales, Goodwill, Value Village (Clarke and Dundas Street) or Salvation Army, or other second hand furniture shops.
Turning lights off, fixing dripping taps and turning the heat down low with a warm blanket and wearing sweats or sweaters are good ways to keep the utility bills down. (No electric blankets --- unless utilities are included — they suck up so much electricity it is staggering!)
Insurance is something to consider if you own property of value including furniture, appliances, a computer, electronics, etc. Before buying insurance, check with your family to see if their home insurance policy can be extended to cover your possessions.
Err on the side of things costing more than you think. Review your budget on a monthly basis. It's not cast in stone; it's intended to help manage income and spending. Catch and correct bad spending habits, and pat yourself on the back for the good ones. It may sound cheesy, but these are good lessons to learn for life.
It takes upon average, six months to find a job after school. You also have to start paying back OSAP six months after you finish school and bankruptcy is not an option
There are bursaries and scholarships out there that people never apply for.
The staff in financial aid is a plethora of information and wonderful people to boot. Talk to them about budgeting if you want assistance or any information about financial aid in general. I am not saying that budgeting is easy: it's not. It is time to pull up our socks and think hard about how we want to spend these years at Fanshawe. Remember to have a good time, but in the end you don't want to spend a decade or more paying for it.
Budgeting tips
- Don't smoke --- you might as well light 20-dollar bills on fire and throw them out the window.
- Clip coupons and/or obtain a discount card from your local grocer.
- Determine a food budget and make menu plans. Stick to both.
- If you cook in groups with friends you can get more variety --- i.e. cook lots of different things and split it all up.
- Get to love beans and pasta — a lot cheaper than meat and better for you.
- Read labels and use unit pricing to calculate the best buys. (The label below the item usually has the price per 100 grams so you can tell which is cheapest --- remember a sale is not always a sale!) --- Try store brands or generic items for best price!
- Buy produce and fresh fruit in season — check the “seconds rack” --- if you cut out a bruise it is often just as good.
- Use a grocery list and don't shop when you're hungry.
- Never buy anything at a variety store, because the price is usually triple when it comes to any food item other than milk!
- Avoid buying convenience foods - they are much more expensive.
- Go shopping with a couple of friends -- car/cab/bus-pool and buy large size items that can be divided up between you.
- The food bank is open on Saturdays just for students. Remember your student card or you will walk away empty handed.
- Buy used books whenever possible, but be sure to check for current editions.
- Share or exchange books with classmates when possible.
- Check out library volumes or use texts placed on reserve.
- Conserve notebook paper; write on both sides.
- When selling used books, be selective. You may want to keep some for research or graduate study later on. If you do sell your used books, first try to sell them to other students instead of back to the bookstore. Often you can get a better price.
- Many supplies (such as paper, pencils, and pens) cost less at chain grocery or discount stores.
- If purchasing a computer, build the expense into your budget and buy what you can afford -- it may mean buying a used computer and/or last month's state-of-the-art.
- If you are really broke, ask your teachers if you can e-mail your assignment into them!
- Don't miss class as it costs 10 cents a page to photocopy missed notes — it is cheaper to be there and take the notes yourself!
- Take advantage of free concerts, plays, lectures, and other activities on campus and in the community. The public library is amazing for these! I took an amazing course on printmaking and bookbinding last year that was fascinating.
- Try the bartering system with skills such as typing and baby-sitting.
- Read ads carefully for items you need. The Pennysaver is a godsend and is free! (The London Free Press is free online as well --- www.lfpress.com)
- Deposit enough money in a separate savings account each month to cover your fixed expenses. Don't use that money for anything else.
- Leave your credit card at home to avoid impulse buying and avoid those credit card application forms that are left around the school like the plague.
- Estimate your income for the budget period. Include your savings, scholarships and bursaries, student loans, summer job and school year earnings, and contributions from your family if you are lucky.
- Estimate expenses. Fixed expenses such as tuition and fees should not vary within the academic year. Other costs, such as off-campus room and board, transportation, and personal expenses may vary, but are within your control. Anticipate special expenses such as deposits, telephone installation fees, and gifts, and include these in your planning.
- Keep a record of actual expenses. You should keep a budget notebook and write down what you spend. Listing expenses in categories gives you an accurate picture of how you spend your money.
