Report
University
Financial Consumer Agency of CanadaCourse
Education fundingPages
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Academic year
2021
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Budgeting for student life
Budgeting for student
life
From: Financial Consumer Agency of Canada
On this page
● Costs to include in your budget
● Sources of income
● Student credit cards
● Tax deductions and tax credits for students
Costs to include in your
budget
A budget is a plan that helps you manage your money. It will help you
figure out how much money you’ll get and spend during your studies.
Include all the costs of student life when making your budget.
Tuition fees
Tuition fees are what you pay your university or college to enroll in
your program and attend classes.
Tuition fees may vary depending on:
● the program you study
● the school you attend
● the province or territory of your school
● your residency status or citizenship
● the number of classes you take
● the type of classes you take
● whether you’re a part-time or full-time student
Check your school’s website for details about the tuition fees you’ll
pay.
Student fees
You’ll need to pay other types of student fees such as student union
fees and administration fees. The exact fees will depend on your
school.
Health insurance
Private health insurance coverage is usually included in student fees.
This insurance covers medical or dental costs not covered by your
provincial or territorial health insurance.
If you have private health insurance coverage with your job or family,
you may be able to opt out of your school’s coverage. Check with your
school to see if you're eligible. Most schools require you to opt out
during the first few weeks of the school year. You may have to provide
proof that you have private health insurance coverage from another
source.
Books and other course materials
The cost of books and other course materials depends
on your program and school.
Approximately, $800 to $1,000 per year is a easonable estimate
for undergraduate students.
Check with your school or with someone already enrolled in your program
for a more accurate estimate.
To reduce the costs of books and other course materials consider
doing the following:
●buying textbooks from online retailers
that may offer items at a lower price than the campus bookstore
● getting the electronic version of course materials
such as textbooks and articles
● sharing textbooks with roommates or classmates, if practical
● checking your school library to see
if any of the course material is available to borrow
● selling your used textbooks
● using an older edition of the textbook if possible
Living expenses
How much you spend on living expenses will have a big impact on
your financial situation when you finish your studies.
Living on campus
If you plan to live on campus, check student residence and meal plan
costs on your university or college website. Consider living in a shared
residence room because shared rooms often cost less than single
rooms.
Living off campus
You may choose to live off campus rather than in residence. This
could mean living with roommates, living on your own or living with
your family. Choosing to live with your family while you study could cut
your living expenses by thousands of dollars a year.
Some school websites provide estimated costs for living off campus.
The cost of living off campus will depend on where you study. For
example, rent in a small town in Nova Scotia may be much less than
in downtown Toronto.
Remember to consider the cost of heat, electricity, Internet and
tenant’s insurance. Living with roommates is a way to reduce all these
costs.
Cost of food while living off campus
Make sure you include the cost of meals in your budget. Some
grocery stores offer student deals on certain days of the week. Ask
about student discounts whenever you shop.
Many schools also offer meal plans for students living off campus.
Contact your school for more information on these plans.
Transportation
If you need to use public transit to get to school, check the price of a
public transit pass. Some schools provide students with transit passes
as part of tuition fees.
If you have a car, check your school website to see how much you’ll
have to pay for parking. Also, consider the cost of gas for getting to
and from school each day. You may find that taking public transit is
much cheaper than driving to school every day.
If you live away from home, make sure to include the cost of going
home for a visit or summer vacation. Most airlines, bus companies
and passenger trains offer discounts to students.
Many of these discounts are available with the International Student
Identity Card.
Entertainment costs
Entertainment, clothing and cell phone costs are examples of other
expenses you’ll need to consider. To reduce these costs, look for ways
to save by focusing on what you need instead of what you want.
You may be able to save money on these costs by using student
discount cards.
Consider rising costs
Your tuition and living costs may rise each year that you’re a student.
The cost of your books and living expenses may increase due to
inflation. Inflation is the rising cost of consumer goods and services. In
recent years, the average rate of inflation in Canada has been 2% per
year.
Remember to include these increases in costs when making a budget
for student life. You may want to consider making a new budget for
each year that you’re a student.
Sources of income
When making your budget for student life, consider where your money
will come from. Your income may come from personal savings or from
working while going to school.
To add to your income you also need to consider:
● scholarships
● grants
● a government student loan
● a student line of credit from your financial institution
Student credit cards
University and college campuses are popular advertising spots for
credit card companies. The average annual interest rate for student
credit cards in Canada is 18.11%.
Be cautious: credit cards are a very expensive way to borrow money if
you don’t pay off the balance in full each month.
Tax deductions and tax
credits for students
There are many tax deductions and tax credits available for students.
What you’re eligible for depends on if you’re a part-time or full-time
student. Make sure to file your return on time each year to avoid
penalties.
A tax deduction reduces your taxable income for the year. For
example, as a student you may be eligible for tax deductions for
moving expenses and child care expenses, as well as other tax
deductions.
A non-refundable tax credit reduces the amount of tax you owe. You
may be eligible for non-refundable tax credits for costs that include:
● tuition fees
● books
● public transit
● interest paid on your student loans
Taking advantage of these tax credits and deductions will have a big
impact your annual tax return.
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