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For many students, leaving home for the first time to attend college or university can be an overwhelming experience. They are faced with important educational decisions, including which courses to take. Many will face important financing and banking decisions as well. Maria Racanelli, Vice President of Personal Banking at BMO Bank of Montreal suggests that students take the time to review their financing and budgeting needs with a qualified banking professional. She also offers a short checklist of financial tips that students should consider as they begin their post-secondary education.

1. Understand the true costs of school – Tuition is not your only expense. Develop a budget that includes textbooks, supplies, computers (software, Internet), transportation, general living and social expenses.
2. Develop a budget (and stick to it) – You should develop a monthly budget either by using a budget calculator or by speaking with a financial professional. A budget is a key building block to helping you manage the money you have more effectively. Then stick to it. A budget doesn’t work if you only think of your short term needs and forget that the school year lasts a full eight months or more (and so should your money).
3. Plan for emergencies – Even if you do plan well, you may still face unexpected expenses throughout the school year. To manage these situations it is important that you have access to an emergency fund or alternative financing, such as a student credit card or a line of credit. BMO Bank of Montreal offers both a student Mosaik MasterCard and a student line of credit.
4. Seek out student discounts – As a student, every cent counts, so take advantage of the many organizations that offer students discounts. For example, BMO Bank of Montreal offers a free student banking plan that includes personal banking and the ability to redeem AIR MILES reward miles for movie passes, Gift Certificates, CDs, DVDs and travel.
5. Pay for it now – If you can, pay for your education as you go. Many students enter college or university without having a sound plan to fund their education: you shouldn’t be one of them. The last thing that you want to do is get so far into debt that you spend the first few years following graduation working just to pay off student loans.
6. Understand your financing options – If you do not qualify for government assistance and/or do not have enough savings from a summer job, most financial institutions can provide financial help with a loan or a line of credit.
7. Think both short and long term – By having two different bank accounts, students can manage their short and long-term financial needs separately. A day-to-day chequing account is perfect for daily and weekly needs, while a premium rate savings account earns competitive interest rates on money needed later in the year.
8. Regularly re-evaluate your financial needs – As you go through college or university, the financial assistance you require often changes. Scheduling regular appointments with your banking professional is one way to maintain healthy finances and allows you to make any necessary financial adjustments.
9. Manage your money effectively – Simple activities such as paying by debit or using an ABM of another financial institution can be quite costly if you are not in the right banking plan. Paying cash or using your own banking institution will save you money throughout the course of the year.
10. Protect your identity – Always shield yourself when entering PIN numbers during debit purchases. Also, when paying with debit, make sure that the merchant is a trusted and reputable business.

For more information about financing solutions for students, drop by your local BMO Bank of Montreal branch or visit www.bmo.com.

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