With freedom comes responsibilities: attending classes and studying while also maintaining a social life and making time for chores, meals and maybe even a part-time job—all while trying not to let any debt spiral out of control.
“A lot of things change financially for you when you turn 18,” said Shannon Lee Simmons, a Certified Financial Planner and founder of New School of Finance. Students entering post-secondary might want to apply for credit cards, open a chequing account and will likely now find themselves responsible for day-to-day expenses, she said. “There’s big financial stakes and your first time doing it in a big way, all happening at the same time.”
Several studies have highlighted the financial struggles of post-secondary students over the years, as costs for tuition, books and meals increased—adding stress to an already-long list of concerns young adults are dealing with today. A 2024 Canadian Alliance of Student Associations survey shows more than two-thirds of students anticipate graduating with debt. The report also found the annual cost of living for students averages $28,731.60.
How to pay for school and have a life—a guide for students and parents
Build good financial habits from the start
Experts say it’s important to establish financial habits early on to help manage finances effectively.
“This is the time in your life in which you formulate habits,” said Bruce Sellery, CEO of non-profit credit counselling agency Credit Canada. Students need to lock into a powerful mindset before entering university, he added.
“It is this: Live within your means. If you don’t have the money, you don’t spend it,” Sellery said. “This is a habit. It is a skill. It is a value,” he said. “It will serve you for the rest of your life.”
Before the school year starts, Simmons suggested setting up a 12-month financial plan that includes income streams from a registered education savings plan (RESP), any jobs, or a student loan against a list of expenses, such as tuition, books, transportation, and rent—and see if you can live within what’s left. “With school, there (are) limited resources and lots of expenses,” she said. “So, we sort of have to just squeeze our life into whatever is left over at the end of it.”
Understand the terms of student loans
Stacy Yanchuk Oleksy, CEO of Money Mentors, says students who are taking on student debt should first know what they need it for.
