Budgeting do’s and don’ts for university students living off-campus

By University Study

By Hailey Leggett

The transition from on-campus residence to off-campus living can place significant pressure on a student’s financial stability and mental wellbeing. Many are experiencing financial independence from their parents for the first time, which can be a liberating but also challenging milestone. While it may feel daunting at first, through practice and personalization, you’ll adopt individual tips and tricks of budgeting. Learning how to manage money is one of the most important life skills for university students. It doesn’t take much to get yourself in trouble, so understanding how it works is a necessary skill. The following tips and strategies serve as helpful reminders for managing your finances effectivelyand how to allocate money in a responsible and organized manner.

When you craft your budget, a helpful tip is to organize your expenses into three distinct categories: Fixed Expenses, Flexible Expenses, and Savings. Fixed expenses include rent, utilities, and phone bills. Flexible Expenses include food, transport and any other necessary but fluctuating expenses. Savings refer to leftover money set aside for future needs or goals. Although this may not apply to everyone’s situation, if you are looking to save up for a large purchase—like a car for example—it’s a good idea to designate a certain amount of money into what’s called a sinking fund. This money, although put aside now, will be used in the future. As you develop your own budget, it is important to keep in mind the following tips:

Avoid overspending on groceries

Grocery prices can be overwhelming and confusing to navigate, especially for first-time shoppers. While groceries can take up a significant percentage of your monthly budget, there are plenty of ways to save money. When you have time or access to a vehicle, compare local grocery stores near your campus and determine which one has the best prices. Discount grocery stores include, but are not limited to: Walmart, Food Basics, No Frills and regional favorites like Adonis, which operates in both Quebec and Ontario, as well as local farmers’ markets.

In most cities, big chain grocery stores will have a student discount once a week, where you can expect 10 to 30 percent off your order. It may not seem significant, but you can save a lot of money this way. Ask a cashier if and when your local grocery store offers this perk.

Making a weekly grocery list and sticking to it can save you more money than you think. It’s also a good way to keep track of what you’ve run out of and what you need for upcoming recipes. Before adding an item to the list, ask yourself “Do I need this, or do I want this?”; if it’s not on the list then you probably don’t need it.

Another tip is to buy products in bulk—assuming you can get through the food before it expires. You can often save money when buying non-perishable foods like granola bars, nuts, and dried fruit in bulk. Most importantly, aim to maintain a healthy, balanced diet. This means learning to cook and create healthy meals. Find recipes that keep you full and energetic. Often, the ingredients needed in these recipes use versatile fresh foods that can be incorporated into a variety of different meals.

Beware of splurging on coffee

I understand the appeal of grabbing a coffee on the way to class, but the cost can really add up. It’s good to get into the habit of making your own coffee. If you have trouble with this, track your daily coffee spending and total it at the end of the month. It’s usually a lot more than you think. To save money, try purchasing a coffee maker and reusable mug. This will help you get in the habit of making coffee at home. If you like flavoured drinks, coffee shops and popular chains often sell syrup in bulk for around $15 to $20—and a bottle can last over a month and a half depending on your coffee consumption.

If your coffee maker uses pods, buy them in bulk from stores like Costco—if you have a membership or know someone who does. This is much cheaper than buying them from a regular grocery store. Depending on your machine, you may be able to use reusable pods, which will save you money and prevent waste. A cheaper and more accessible alternative is to buy a coffee maker that uses ground coffee.

Reduce your utility bills

For first-time renters, the cost of utilities can be shocking and stressful. One of the most important tips I can give is to always ask the local utility company what the average bill is for the space you are looking to rent. Depending on the area, type of heating, and unit space, the cost can fluctuate heavily. Before signing a lease, contact the local utility provider in your area and ask for an estimate on the previous tenants average billing amount. In addition, it is critical to learn how the billing and metering works, as this can help you understand where and why spikes occur. For example, if you have in-unit laundry, learn when it is cheapest to run the washer and dryer, and accommodate your schedule to those times.

When you are living with roommates and splitting the electricity bill equally, it is super important that everyone adopts the age-old habit of turning off the lights. You’ve probably heard your parents say that before, but it can save you money in the long run. It’s also beneficial to build a habit of turning off energy-consuming devices like fans when you are not home or sleeping.

Before you start crafting a budget, ask the utility company if it can provide you with the previous tenant’s highest bill. Depending on the unit and whether it has air conditioning, the utility bill may fluctuate heavily with the seasons. Having this information is important as it helps you budget accordingly. A good strategy is to calculate the total amount over the year, and budget the average monthly cost throughout the year, with a certain buffer in case of spikes during the winter. This way, you will have a clear picture of exactly how much money you will need to put aside for duration of the lease.

Cheaper alternatives to expensive textbooks

While professors may recommend the campus bookstore, it is very likely that the book you need is available elsewhere and at a lower cost. If your university has Facebook groups, check to see if they have a page dedicated to used textbooks. Often, you’ll find the textbook you’re looking for in good condition, sometimes unused. Another strategy is to check and see if there is a used bookstore near or around the university campus. Graduating students often donate old textbooks to local shops or student groups. They’ll often be selling them at a huge discount. Some university bookstores in Canada don’t accept returns if the plastic wrap is removed from the book so keep this in mind.

Budgeting is very dependent on personal experience. Most of it, you’ll learn through trial and error. My budget changed drastically in the fall and winter terms of second year when I started living off-campus. Even though I had planned ahead, there were unexpected costs I hadn’t accounted for. The tips and tricks above were lessons I learned and now use as a guide for budgeting my money on a daily basis.