Budgeting saves students' lives

By Jessica McDonald

mcdo0361@algonquincollege.com

The refrigerator only holds a bottle of ketchup, some dill pickles, and half a carton of sour milk. There is not enough detergent left to do laundry, and unopened bills on the microwave are a fast reminder that late fees are adding up quickly.

Following a budget can’t always solve an empty refrigerator or eliminate the pile of laundry, but using simple methods to manage funds – regardless of the amount – can make a huge impact on a student’s lifestyle.

Algonquin’s Financial Aid services offer students one-on-one budget counselling, and can steer students in the right path to managing their finances.

Debra LeBlanc, Financial Aid front office supervisor, explained that assigned officers are always ready to help.

“Students can simply contact our office and will be given the name and phone number, or if they are here in person, given their Assigned Officer's business card to contact,” said LeBlanc.

Financial Aid has a budget sheet for the period of eight months students can use to fill out their income and expenses in detail, including transportation, entertainment, and food. By deducting the total income by the total amount of expenses, a surplus or deficit is calculated.

The amount of surplus or deficit allows the student to see whether they are living below or above their means, and by looking at any unforeseen costs or expenses, it is possible to re-allocate funds into necessary areas.

Justin Edwards, graduate of the business administration program, said one of his first-year accounting courses taught him how to budget and was one of his favourite classes.

While attending college, Edwards followed a budget and calculated how much money he would allow himself to spend at the beginning of each week.

“I would always keep track, start of every week ... how much I’m allowed to spend, based on what I’m making,” he said.

Since most full-time students are either not working or working part-time, money can be tight, which is why Edwards suggests keeping track of expenses in an Excel spread sheet or by verifying online bank accounts daily.

“I’m a big believer in online banking. Everyday I would be on my account checking how much money I have,” he said.

Instead of spending money at the cafeteria, Edwards suggests students make a lunch and save money. He would also buy used text books if possible, print out all his notes at the computer labs at Algonquin because it’s free, and saved $20 a month by using the Internet in the library.

Costs can be cut where necessary, but following a budget doesn’t have to mean cutting out all expenses, he added.

According to the TD Canada Trust’s website on money tools for students, it is important to revisit your student budget every term.

“Your financial situation will probably change in step, as you make decisions like taking on part-time work, applying for scholarship funding, or adding expenses like a car or a bigger apartment,” states the TD Canada Trust “managing money and creating a budget” tips online.