The first week of school is almost finished and all those ‘back to school’ parties can be distracting! A lot of money changes hands during the first couple weeks of school…mostly it flows in one direction, out of your hands! There are lots of big expenses as well as little ones that all add up. If you can get a handle on your finances early in the year, you will be set up for success.

Here’s how the schooling expenses total for Anna:

• $5,500 Tuition
• $5,000 Residence
• $4,000 Meal Plan
• $1,500 Books and Supplies
• $16,000 TOTAL SCHOOLING

Anna’s monthly living costs:

• $50 Medical Coverage and Medications
• $100 Transportation
• $50 Toiletries, Grooming
• $30 Gifts
• $300 Entertainment
• $75 Clothing
• $605 MONTHLY LIVING COSTS

Read more »

What’s your motto? Live like a pauper and graduate a princess or prince? You may think the goal of graduating without student debt is lofty to say the least. It’s not easy but a challenge worth accepting. Just like any other budget, if it doesn’t balance (that is to say that expenses are greater than income), you can take one or both of these tactics: Read more »

One more week of summer means a last scramble to get organized for back to school. Now that you’re on your own, are you looking after yourself? It’s easy to work through the checklist of registering for courses, gathering supplies and packing your bags but have you taken the opportunity to work through the dollars and sense? Whether you’re starting post secondary education or well along the path of higher learning, it’s never too late to take stock of your financial position and set a plan for success. Here are a couple actions to get you started:

1. Estimate your expenses (tuition, books, accommodation, food, transportation, bills and entertainment
2. Estimate your income (savings, family contributions, scholarships/bursaries and employment)
3. Research your future. What are your future employment opportunities and how much can you expect to earn? What are regular living expenses (no more student living for you!)? Don’t forget to add in student loan repayment.

Tip: Add up the annual numbers and multiply by the number of years you expect to be a student to get a complete picture.

Some A+ goals:

• Set a budget and stick to it
• Finish post secondary school with zero or very little student or credit card debt
• Cultivate your network and obtain a part time or summer job in the industry of your future
• Find a healthy balance between the demands of post secondary education and your health

The next post will be about working with the numbers and tips and tricks to frugal student living. Your ideas and suggestions are welcome!

Dear Piggy Bank,

Each year I promise myself I’ll have a better handle on back to school expenses and here I am again, it’s three weeks until school starts. What should we budget for and how much?

Baffled on Back to School Budget

Dear Baffled on Back to School Budget,

It’s hard to believe it’s mid-August already. Summer is flying by and it’s easy to enjoy the nice weather. September comes with lots of expenses leading into the school year and fall/winter months (never mind bills from summer holidays!). Good things to include:

1. School supplies and equipment
2. Clothes
3. Sports, arts and activity fees
4. Lunch programs and fundraisers
5. Birthday parties

Items 1 and 2 can be estimated by doing an inventory of what you currently have and what is required (Tip: Consider what will be needed through the winter months). Decide what is most likely for number 3 and a quick look on the Internet or at a program guide will tell you what to budget. Best to make an experienced guess for numbers 4 and 5. Don’t forget to add them all up! Now you know what expenses this time of year brings. Some frugal suggestions:

• Buy used or on sale (clothes, supplies and equipment)
• Take a look at the proposed weekly activity schedule and discuss whether it’s realistic to do all the things – consider making some choices
• Love the lunch programs but design a brown bag lunch menu to cover off the other days (Goal: simple and nutritious)
• Anticipate the party invites but with a little thought and creativity, last minute and high cost presents can be avoided

I imagine many of you have additional ideas!

Dear Piggy Bank

Dear Piggy Bank,

We both work full time and we try hard not to eat out or order in too much and I think we’re doing a pretty good job. Where we are having trouble is our grocery bill. I’m not really sure how it happens but I’m surprised at the amount at the check out and surprised again when we get our credit card statement. Have you got any suggestions to keep us on budget? We budget $850 per month for four of us.

Great Grocery Bill

Dear Great Grocery Bill,

It’s easy arrive at the check out with a few extras in the cart and maybe this is what’s happening or maybe not. When the two bread winners work full time it can be a real challenge to make sure there’s food in the house nevermind spend any time coupon clipping. Here are a couple basic suggestions:

1. Draft a weekly menu (including lunches and treats)
2. Shop with a list

To take a good look at your food spending and make a bigger dent you can try the following:

• Review past grocery bills and determine where the money is going. Is it treats, prepared food, impulse buys or special dietary requirements?
• Prepare a realistic monthly food budget – be sure to include infrequent shops or bulk orders.
• Consider whether a freezer is something you have space for.
• Are you willing to purchase seasonal items such as fruit or vegetables in bulk and freeze them? How about meat and/or fish?
• If you have the time to check out sales or discount events, your shopping list will be up to date and there will be less thinking on your feet, comparing prices in your head.
• Taking advantage of great sales is a fantastic way to minimize your food costs if a) you can store the extra quantities and b) it’s food you will eat.
• Manage your menu and be sure to inclde some nutritious but low cost meals with leftovers for lunch.
• Prepared foods may seem simple but often take the same ‘hands-on’ time as a meal from scratch once you’ve added a couple other pieces to the meal. And they do add to the cost.
• The Internet is a great resources for nutrious but meals made from a small number of ingredients (and small number of your minutes!).

Hope this helps,
Dear Piggy Bank

Dear Piggy Bank,

It’s most of the way through July and we’re going to blow our summer budget if we’re not careful. How do we stay on track during the summer? The kids are out of school, we’re taking some holidays, there are bbq’s and less hours at work?

Simmering Summer Budget

Dear Simmering Summer Budget,

It can be challenging to finish out the summer on budget. There is so much to do! It sounds like one or both of you are self-employed or work variable hours which reduces household income.

Even though we’re almost half way through summer, it doesn’t hurt to make a simple budget to cover the rest of the summer. Here’s the simplified version – jot down #1, 2, 3 and 4:

1. Income (after tax amounts)?
2. Fixed and/or ‘needs’ expenses (rent or mortgage, food, transportation, debt repayment, savings)?
3. Summer plans (already made)?
4. Summer plans (would like to do)?
5. Add #2 and #3, subtract from #1. What’s left? Allocate the remainder to #4.

Community centres, parks, libraries, local businesses and city funded events are often sources of fun and reasonable activities to keep all ages entertained. Shopping on sale, including trips and excursions is a great way to do more expensive activities at reduced rates.

Dear Piggy Bank

Dear Piggy Bank,

I am expecting my first child and just about to go on maternity leave but I’ve been so excited about the baby I haven’t really thought past getting ready for the baby to arrive. I finish work in a couple weeks and realize we haven’t thought much (ok, at all) about how our finances will change. I’ve asked a few questions at work but don’t have a good understanding of what to expect.

Muddled About Maternity Money

Dear Muddled About Maternity Money,

There’s a lot to think about when you’re expecting your first and I can understand how the financial implications have taken a back seat to car seats, cribs and diapers!

There are two stages to Budgeting for Baby:

1. Maternity leave finances
2. Post-maternity leave finances
   

#1: For most people, household income changes a far bit when 1 person takes maternity leave – usually the female but not always. A birth mother is eligible for maternity leave benefits and then new parents are eligible for parental leave. The combination of the two may provide benefits for up to 50 weeks. The payments are based on previous work hours and salary, maxing out at $411 per week. Some employers provide additional benefits but not very many. Here are some suggestions:

• Find out how your household income will change. What will it be while someone stays home to care for the baby?
• Review the rest of your income and expenses and think about other changes that will have financial impact (i.e. lower drycleaning expenses but a new community center membership).

 
#2: Return to work day comes quickly. Sometimes by choice and sometimes out of necessity. Either way, your life has permanently changed and there are new responsibilities and money matters to consider. Putting a little thought into this stage now can make a huge difference later!

• Will you stay home, put your child in child care, a combination of both or perhaps you have family who will help? A couple phone calls or conversations with other moms will give you a good idea of the cost of the alternatives.
• Craft a budget that includes any change to your income (if you go part-time or self-employed), your expenses (including any expenses relating to the child) and savings (emergency, education).
  

It may seem daunting but getting the facts and putting a little thought into a plan now will put you in the driver’s seat to make these decisions and alleviate some of the anxiety around major life changes!

Dear Piggy Bank

Dear Piggy Bank,

I’ve always wanted to travel but there doesn’t seem to be the money to take a trip longer than long weekends or a flight home at Christmas to see my family.

How do I make this happen?

Hopeful Traveler Read more »

Dear Piggy Bank,

I’m an elementary school teacher and as June draws to a close I battle with two feelings. I can’t wait for the break after another busy year but I also feel guilty that I haven’t set aside the money. I know that I’ll have a big credit card bill by September. I don’t spend extravagantly but day to day life catches up after two months of no pay cheque. I’m paid over ten months of the year – September to June and still can’t get it together to be prepared for the summer pay cheque drought!

Trying to Graduate to the Next Grade in $

Dear Trying to Graduate to the Next Grade in $,

You’re not alone in the challenge of budgeting over the full year when you’re paid a full salary over ten months. There are two parts to this problem:

1. Basic Budgeting: Know the total amount of your monthly expenses (rent, food, transportation, entertainment, insurance, debt repayment and savings)
2. Cash Flow:
a) Convert your ten month net income to annual net income (take a typical month, multiple by 10 and divide by 12)
b) Ask your school if they have a payroll program to smooth your ten month income over twelve
c) If they don’t…set up a ten month forced savings (talk to your bank) so you have the money for July and August

It’s not as big of a problem as you imagine! Take control of your money and you can finish the summer with a smile.

Dear Piggy Bank

Dear Piggy Bank,

It doesn’t matter how old I get, I still remember the anticipation of summer holidays. The end of the school year is always the trigger! July 1st long weekend is a great way to kick things off and even though it doesn’t look like the weather is going to be stellar…it’s a long weekend and it’s the first of many weekends away. The only thing niggling at me is whether or not I have enough money to pay for all the fun things that go on in the summer. It’s lousy to have a big bill at the end but it’s so hard to say ‘no’ to weekends with friends, bbq’s and summer entertainment. What do you recommend?

Summer Holidays

 Dear Summer Holidays,

It’s true isn’t it, even though most of us look forward to summer fun and almost everyone takes some holiday time in the summer, very few Canadians are well prepared enough to cover the costs of the holidays. Typical expenses include:

• Travel – Transportation, accommodation, food, entertainment
• Entertaining – Food, alcohol
• Fun – Admissions to fun parks, movies, eating/drinking out, concerts
• Summer Camps and Activities
• Sports – Equipment, fees and repairs

Although it’s a little later than ideal, it’s a good idea to take a look at the calendar, list the activities you would like to do and estimate the cost to tally the associated expenses over and above typical expenses. Now comes the hard part….deciding what to do if you can’t afford to do everything in your plans. Choices are never easy but stressing about the bills at the end of the summer isn’t fun either. Making informed decisions pays off though and whether you choose to save on this to spend on that or not go here to go there it’s your choice and you can own that!

Enjoy the long weekend,

Dear Piggy Bank