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This fall most university or college-bound students will be preoccupied by scholastic, social and athletic pursuits, but the rising cost of education has also put finances squarely on the study list of many post-secondary students.   Cid Palacio, Vice President of Banking Products at BMO Bank of Montreal suggests that students should take advantage of the advisory services that local banks can provide when they arrive on campus this fall.  This professional advice can help students deal with everything from developing personal budgets and managing their student loans to choosing the right credit card for emergencies.

As a starter, Ms. Palacio advises that students review the following tip sheet as they head off to begin their post-secondary education.  Making good financial decisions in the early going can help save thousands over the next few years.
 
Top Tips

1) Understand the real costs of education – Tuition and school fees are not your only expenses. Develop a realistic budget that includes textbooks, supplies, computers (software, Internet), transportation, general living and social expenses.  Understanding your real costs is the first step in effective budgeting.

2) Put together a realistic budget (and stick to it) – You should develop a monthly budget either by using a budget calculator (available at no cost at your local bank branch) or by speaking with a financial professional.  Then stick to it.  A budget is a key building block to helping you manage the money you have effectively.  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 that your money should too).

3) Plan for the unexpected – Even if you do plan well, you may still face emergency expenses at some point during the school year.  To manage these situations it is useful to have access to an emergency fund or alternative financing, such as a student credit card or a line of credit.  For example, BMO Bank of Montreal offers both a student Mosaik MasterCard and a student line of credit and can show you the best way of using each depending on the situation.

4) Look for student discounts – As a student, every cent counts, so take advantage of the many organizations that offer student discounts.   Many bookstores, transportation companies, and entertainment venues offer sizable discounts so don't be afraid to ask. BMO Bank of Montreal is the only bank to offer free banking for students, so shop around before you open a bank account or apply for a loan to make sure you get the best deal.

5) Pay today – 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) Know 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.  It is wise to make an appointment with your banker and have her go over your needs.   You may have options you never considered before.

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 savings account is a good place to park money that will be 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 will allow 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 your hand 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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