When it comes to planning finances for college, most people think about tuition, groceries, living accommodation and textbooks. And while upfront that is all that you need to make it through, many people forget to consider the cost of fun.

A night on the town, going out for drinks and dinner, or even just seeing a movie, are all things that can be costly, and while sitting out can be an option, FOMO is a price most aren’t willing to pay.

“It is really hard sometimes, when everyone else around you wants to go out for dinner one night but you have to maybe choose between a little fun and paying tuition,” shared Tianna McKelvey, a second-year student at Fanshawe.

“Fear of missing out,” also known as FOMO, is a big thing for most students over spending.

“I understand that I’m growing up and need to start being financially responsible but it’s hard to make that choice when you get FOMO,” added McKelvey.

Fortunately, by thinking ahead and planning correctly you may be able to fit in the cost of fun and not have to choose between needing to save or rave.

“What I can recommend from my end is use a budgeting tool, learn how to budget,” said Jerry Thomas, the Fanshawe Student Union (FSU) Financial Coordinator.

Money can be really intimidating to a lot of young people. Understanding things like taxes, credit scores, and budgeting is a complicated task, but is a really beneficial skill to have.

Something Thomas sees a lot of is that many students plan but don’t budget. The two might sound the same, but there is a difference, according to Thomas.

“They come into the picture thinking they’ll get a job within a month or two. And then they plan. They do planning, they don’t budget, but they’re planning. And that’s a lot of probability,” Thomas said.

Having just enough to get through because you anticipate more will come soon once you generate a source of income can be a dangerous game to play.

“Always have an emergency bucket of three to six months of your expenses and everything so that you are not totally relying on maybe finding a job,” Thomas added.

Another problem Thomas said he sees is a lot students not knowing how to save money.

“There’s a rule called 50-30-20, which means save 20 per cent of whatever you’re earning, put it into your savings account, 50 per cent goes for the expenses, 30 per cent towards spending,” he said.

Another important thing Thomas noted was to make sure you are opening a student savings account as opposed to a regular savings account. This is because student savings account will offer better interest rates.

“​​I would recommend research, see what savings account gives you a better interest. A lot of times students don’t do their research,” Thomas said.

As scary as managing money can be, just think of it as managing fun. The more you understand, the better you will be able to allocate what you need to survive as a student while also keeping up with the things that bring you joy.