News Releases

TORONTO, September 2, 2008 –This fall the rising cost of education has put finances squarely on the study list of many post secondary students.  BMO Bank of Montreal offers the following financial checklist to help University and College students make financial decisions in the early going that may help them save thousands of dollars over the next four years.

TOP TEN WAYS TO LOWER BACK-TO-SCHOOL EXPENSES

1. Put together a realistic budget (and stick to it) –Develop a monthly budget that calculates all of your income (summer job, part-time job, student loan, scholarships and grants, parental support, savings, etc.) against fixed expenses such as tuition and books, and monthly expenses such as rent, groceries, phone, internet, tv, transportation, entertainment, credit card payments, loan payments and discretionary spending money. If you need help, try using an online budget calculator (BMO's Student Budget Calculator at  www4.bmo.com/studentbanking/student-banking-loans.html is fast and easy to use) or speak with a financial professional. Once you've established your budget, stick to it.  The school year lasts a full eight months or more and so should your money. BMO also offers a pre-paid MasterCard to help students budget throughout the school year. There are no interest charges and it includes most of the benefits of a regular Mosaik MasterCard.
2. Plan for the unexpected  – Even if you plan well, you could still face unexpected expenses at some point during the school year.  A student credit card or a line of credit will give you the peace of mind of knowing you have ready access to emergency  funds  whenever you need them.  Most banks offer a line of credit and credit cards to students but look for a card that gives you flexibility and the best possible rates. BMO Bank of Montreal offers a student MasterCard that includes Student Price Card (SPC) rewards and lets you customize your card with no fee, AIR MILES or CashBack^� rewards and your choice of interest rate plan  – which can help you manage your costs more effectively.
3. Take advantage of student discounts – Every cent counts, so hook up with organizations that offer discounts on school books, transportation, entertainment, clothing, and banking services.  BMO Bank of Montreal is the only bank to offer free banking for students during school and after graduation so shop around before you open a bank account or ask for a loan.  BMO's SPC MasterCard is unique in that it provides exclusive discounts on purchases made at thousands of Student Price Card (SPC) retailers nationwide for no added fee.  
4. Use a reward program to stretch your dollars throughout the year – If you anticipate travelling home throughout the school year to see family or friends, a card that earns rewards such as AIR MILES makes good sense. AIR MILES reward miles can be redeemed for flights, merchandise and more. If, on the other hand, you'd rather realize annual savings, a CashBack Reward program will put money back in your pocket for every purchase you make.  And BMO is the only Canadian bank that rewards Collectors for purchases made through BOTH a credit card and a debit card. 
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 walk you through your needs. You may have options you never considered before.
7. Think both short and long term – By having two different bank accounts, you  can manage your  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 progress through college or university, the financial assistance you require often changes.  Schedule regular appointments with your bank manager or financial advisor to review your current finances and  to make any necessary  adjustments.
9. Manage your money effectively – Avoid unnecessary banking expenses that can add up over time.  Debit card purchases and transactions made from other-bank ABMs can be costly if they are not included in your bank plan. Choose a plan that is tailored to how you like to bank and manage your day-to-day living and use your own banking institution to save money throughout the year.
10. Protect your identity – Always shield with 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.

BACKGROUNDER

BMO's Student Six Pack

• Free Banking -- Students who open a Personal Banking account with the Plus Plan can bank for Free (a savings of $102 each year) and get:
• Up to 30 transactions each month
• 1 Interac^� Email Money Transfer per month
• Overdraft Transfer Service at no extra charge
• BMO is the ONLY bank to provide recent graduates with an extra year of FREE banking.
• Premium Rate Savings Account
• Competitive interest rate without locking in your money
• Up to 30 transactions each month
• 1 Interac^� Email Money Transfer per month
• Overdraft Transfer Service at no extra charge
• Student Line of Credit
• Low interest rates – set a Prime plus 1%
• Credit Limit -- borrow up to $15,000 in your first year and $10,000 in each
  remaining year to a four-year maximum of $45,000 for full-time students
• Lower borrowing costs than a student loan - pay interest only on the amount you actually use
• Easy access to funds - use your BMO debit card or your Student Line of Credit MasterCard�*, write a cheque or visit a BMO branch.
• Easy repayment - monthly interest-only payments up to one year after
  you leave school
• No fees - no annual or monthly fees; no ABM fees.
• BMO SPC Mosaik MasterCard
• NO FEE rewards
• Choice of Interest Rate plans
• 10 – 15% off purchases made at retailers and restaurants chains that offer Student Price Card (SPC) discounts
• Easy Access to Cash and Banking Services
• Interac Email Money Transfer
• Change your address
• Reorder cheques
• Open a Premium Rate Savings Account
• Order travellers cheques and foreign currency
• Set up a consolidated statement
• Air Miles reward miles
• On purchases you make with your BMO Debit Card
• On purchases you make with your BMO SPC Mosaik MasterCard
• Up to 40% more reward miles on other eligible BMO banking product

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