As recent graduates enjoy the last days of summer before heading to college or university this September, Nita Khabra, branch manager at the Fleetwood branch of Envision Financial, a division of First West Credit Union, has some tips to help students get their finances in order before school starts.
Open a no-fee chequing account
A free chequing account is a great way to manage your finances. You can rest easy knowing your money is secure without it costing you a penny. Be on the lookout for an account like Envision Financial’s, Simply Free Account™ which includes unlimited free transactions and e-transfers, making it easy to pay your tuition, textbooks and rent without incurring unnecessary service fees.
Consider a student line of credit
After you’ve calculated your expenses for the upcoming school year, determine how much money you have saved and how much you expect to make over the course of the year. The difference is the amount you’ll need to borrow. Before you do, consider your repayment strategy. Will you be able to afford the monthly payments? If not, look for alternate ways to finance your education or reduce your total costs.
Apply for a student credit card
A credit card offers a secure and convenient way to make purchases and it will help you start developing a solid credit rating. Your credit rating is used by financial institutions to provide you with lending for future purchases like a vehicle or a house. Keep in mind that credit card interest rates are higher than a line of credit and should only be used for small, unexpected expenses. Using your credit responsibly and making payments on time will ensure you’re developing a good credit rating for your future.