How to Plan for Life in College or University

Post-secondary education is quickly becoming a must in today's economy. Colleges and universities have been expanding all over the country, to accommodate today's youth's quest for knowledge.

Except: gaining this knowledge more often than not means young people have to leave their familiar surroundings and begin to live on their own. It's costly and, way too often, financially risky for those not ready for a major move like this.

The Financial Consumer Agency of Canada (FCAC) is a federal government department that (as the name suggests) is here to help us, poor customers.

And so it has created a step-by-step program to help new (or continuing, even) students cope and survive.

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Important questions

It may sound strange, but your answer to the first question will help you decide exactly what to do and how. The question sounds almost impertinent: can you afford to move?

Turn to Equifax or Trans-Union to make sure that you have a healthy credit history. There's also a site that gives you your credit rating for free (and who can beat THAT kind of price!).

Now that you know where you stand as far as financial institutions are concerned, sit down and write what it is that you expect to need. In a separate column, write what you expect to want. Give a hard thought to figuring out where the money to satisfy those needs and wants is going to come from. Done? Now's the time to put together a budget. Are you paying taxes? You are, right? So why not use FCAC's free budget calculator? Like a strict parent, it will help you plan and then, even more importantly, stick to your budget.

More tips

1. Check the moving costs and double-check whether there's a less expensive way. While living in a new place, why not cut the cost in half by finding yourself a roommate?

2. It takes more than just the rent to survive. Food. Clothing. Utilities. Phone bills. Sit down and guesstimate. Make sure your guess is educated: check the average prices in the town you're moving to.

3. Make sure you know precisely where your money is going, how regularly, in what amounts.

Plan for deposits. Paying the prospective landlord the first (and, often, last) months' rent in advance is an accepted rule all over the country. Remember it, plan for it. Also remember that - in some provinces – the law requires that you to pay a security deposit to cover any damage you may cause to the apartment. You may also have to pay deposits for electricity, heating and phone bills.

Now that you know your new address, you'll face what is known as settling-in expenses. It's not just the moving truck and the pizza for the friends who are helping you. You'll also need household items: furniture, dishes, small appliances, cleaning products and so forth. If you still depend on snail-mail, remember that Canada Post will charge you for forwarding your mail ($72.50 in the same province or territory, $90.00 between provinces).

Other ongoing expenses will include insurance for your possessions and premises, as well as groceries, parking or transit, cable, Internet, land or cell-phone line, and laundry costs.

Solitary or not?

It's less expensive to have a roommate (or two). It can also be a headache to find one (never mind two) who won't drive you you round the bend. And it's best to spell everything out before you give them the key. It's not only about who's responsible for what cost or what share is everyone responsible for, but it's also about hours when guests are welcome, when playing a musical instrument is fine, when you're willing to socialize and when you need to study (that's what got you there in the first place, after all). Before you start, read about what you need to know before signing a contract. It might be a half-hour well spent.

Study hard and have fun: that's what will make the whole thing worth the effort (and money).

Good luck.

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