It's time to think about your debt
As excitement for graduation
builds in a student's final year, so
does anxiety over debt. The average
debt a student faces following
postsecondary education is
$16,000, which can be terrifying,
considering the small income that
most starting positions offer.
Even if you didn't plan your finances while in high school, you weren't alone. A survey by The Investor Education Fund shows that one-third of high school students said their biggest financial worry was paying for university or college; however, when asked what they were saving for, more than half admitted to spending their savings on clothing and entertainment. If this survey reflects most of your high school career, here's your chance to reduce the damages. Start budgeting and planning now!
The IEF is an organization devoted to making Canadians more financially literate. "Hundreds of millions of dollars are spent marketing financial products to Canadians, and very little in educating them about making good choices," said IEF president Tom Hazma.
"It will be a difficult task to educate consumers and to help them get the skills that are needed to make better financial decisions and withstand the temptations to which they are exposed." The IEF's stance with education is that you have to step back and think about if the person guiding you financially is also the person selling you a product.
It's natural to try to avoid thinking about something scary like student debt, but Perry Quinton, IEF vice-president, suggested creating a plan as soon as possible and to be realistic. "You can't just cut yourself off cold turkey and say, 'My next two years of paycheques are going to be used to pay my student debt,' because eventually you're going to crack, and you'll probably go out on a bender and drop a couple of thousand dollars on shoes," she said.
A better idea is to consider the many numbers of goals you need to meet with your future income, including, but not limited to, making OSAP payments. For example, a bad plan would be to try to pay your debt way too quickly and put yourself into worse financial shape by not being able to pay rent or buy groceries. Fun things should also be put into a budget, like coffee with friends every once in awhile or hitting up Richmond Row. The moral of the story: Plan ahead!
Quinton said financial education isn't half as effective as it could be. According to Quinton, one of the biggest challenges of advancing financial literacy in Canada is the way that information is being communicated. "You don't communicate the same way to a 20-year-old as you would to a 40-year-old. They have different needs … with a 20-something, you're looking at credit cards, loans, savings … they're starting out in life, versus somebody who is planning for retirement," she said.
Websites like getsmartaboutmoney.ca are striving to teach young people about managing their money. It features blogs from three students about how to manage money and tools to help others create their own budget. The IEF is also working to establish a financial literacy advisory council, as well as a central online location where all Canadians can get unbiased information about money management and investing.
Even if you didn't plan your finances while in high school, you weren't alone. A survey by The Investor Education Fund shows that one-third of high school students said their biggest financial worry was paying for university or college; however, when asked what they were saving for, more than half admitted to spending their savings on clothing and entertainment. If this survey reflects most of your high school career, here's your chance to reduce the damages. Start budgeting and planning now!
The IEF is an organization devoted to making Canadians more financially literate. "Hundreds of millions of dollars are spent marketing financial products to Canadians, and very little in educating them about making good choices," said IEF president Tom Hazma.
"It will be a difficult task to educate consumers and to help them get the skills that are needed to make better financial decisions and withstand the temptations to which they are exposed." The IEF's stance with education is that you have to step back and think about if the person guiding you financially is also the person selling you a product.
It's natural to try to avoid thinking about something scary like student debt, but Perry Quinton, IEF vice-president, suggested creating a plan as soon as possible and to be realistic. "You can't just cut yourself off cold turkey and say, 'My next two years of paycheques are going to be used to pay my student debt,' because eventually you're going to crack, and you'll probably go out on a bender and drop a couple of thousand dollars on shoes," she said.
A better idea is to consider the many numbers of goals you need to meet with your future income, including, but not limited to, making OSAP payments. For example, a bad plan would be to try to pay your debt way too quickly and put yourself into worse financial shape by not being able to pay rent or buy groceries. Fun things should also be put into a budget, like coffee with friends every once in awhile or hitting up Richmond Row. The moral of the story: Plan ahead!
Quinton said financial education isn't half as effective as it could be. According to Quinton, one of the biggest challenges of advancing financial literacy in Canada is the way that information is being communicated. "You don't communicate the same way to a 20-year-old as you would to a 40-year-old. They have different needs … with a 20-something, you're looking at credit cards, loans, savings … they're starting out in life, versus somebody who is planning for retirement," she said.
Websites like getsmartaboutmoney.ca are striving to teach young people about managing their money. It features blogs from three students about how to manage money and tools to help others create their own budget. The IEF is also working to establish a financial literacy advisory council, as well as a central online location where all Canadians can get unbiased information about money management and investing.
