Budgeting Tips

Dollars and sense

Developing a budget
and managing finances is an important life skill which all students will need to develop during their university journey. On top of planning to finance your tuition, you’ll also need to factor in additional expenses, including costs for books and supplies, insurance, travel, phone, food, personal items, etc.

Develop a budget

A key money management tool is a budget. It shows you how much is coming in from jobs or loans and how much needs to go out for bills and expenses. It will help you make decisions about how you spend your money on a day-to-day basis. Without a budget, you're making those decisions in the dark.

  1. Determine wants vs. needs
    • In preparing a budget, it's important to distinguish between "needs" and "wants". You need food to live, but going out to eat costs a lot more than eating in. At the same time, getting out with friends is important to your mental health. The trick is finding a balance. You need a budget that is not so strict that you are constantly breaking it, or so relaxed that you are always over-spending.
  2. Money coming in vs. money going out
    • First, list all of your sources of income including money from your parents, savings, student loans, scholarships, bursaries and money from part-time jobs. If you're not sure, make as good a guess as you can. Remember that for employment income, taxes will be taken off.
    • Then, list all of your expenses for the year:
      • School costs: tuition, books and course fees.
      • One-time expenses: moving, rental deposit, trips home, gifts.
      • Monthly expenses: rent, utilities (phone, furnace oil, electricity), groceries, entertainment, gas, bus, car maintenance, clothing. Your monthly expenses will vary. And, in fact, it is the monthly expenses that you have the most control over. If you need to pay for furnace oil, November through March will cost more than other months. Ask your landlord or the oil company for an average cost for the year, then build it into your budget.
  3. Compare your expenses and your income
    • If you are over budget, adjust your flexible expenses, such as spending money or groceries or entertainment. If you know in advance how much you'll be short over the entire year, you can trim by just a little bit throughout the year and maintain control over your budget.

Budgeting Tools

There are great online budgeting tools available.  Two sites to try are:

Credit Counselling of Atlantic Canada

Financial Consumer Agency of Canada