CIBC offers advice for students to approach their finances with confidence this year
Industry research suggests that students are optimistic about their future finances, but not satisfied with their current financial situation
TORONTO, Aug. 16 /CNW/ - Heading to college or university can be an exciting time, but it also presents new challenges to students, some of whom may be taking ownership of their finances for the first time and making decisions that will influence their future financial situation.
Recent industry research indicates that 69% of Canadians aged 18-24 are optimistic that they will be better off financially one year from now. However, only 30% are satisfied with their current financial situation, and 41% say they wish they were more confident about making financial decisions.
"It's encouraging to see that students are optimistic about their financial future, but reaching that goal of having a better financial situation tomorrow means taking some simple steps today to set themselves up for success," says Christina Kramer, Executive Vice-President of Distribution Services for CIBC Retail Markets. "One of the keys to reaching financial goals and building confidence is to work within a simple budget and stay on top of where you are spending your money to help you plan ahead and stay ahead once the school year begins."
Students can take charge of their money and gain financial confidence with these simple tips from CIBC:
Minimize your banking fees: Look for a banking
package that offers benefits to students to help keep your costs down.
As a full-time student attending an accredited Canadian university or
college, you can cut costs by opening a bank account with CIBC
Advantage® for Students benefits that offers
free everyday banking (including free withdrawals at CIBC bank
machines) with no monthly fees and no limit on the number of monthly
- Make a budget and stick to it: As the foundation of a good financial plan, a budget can help you stay on track towards your goals. Use it to determine your fixed costs, like rent and utilities, and estimate your variable expenses, like food and entertainment, while taking into consideration one-time expenses like trips home and course materials. Making a budget and sticking to it is made easier with the free online student budget calculator at www.cibc.com/ca/student-life. When you know what your future expenses look like, you can make more informed decisions today about what you can afford to buy, and what should wait.
- Stay on top of your account: Living within your budget means staying on top of where your money is going on a monthly basis, particularly in September when expenses for course materials can put an immediate dent in your budget. Look for flexible banking options that allow you to manage your money on the go so you'll always know what's in your account. CIBC offers online and telephone banking, and also gives students the option to bank on the go through CIBC Mobile Banking for iPhone, Blackberry®, or another Smartphone. You can use mobile banking to check account balances, pay bills, send or receive INTERAC Email Money Transfers, or find out where the closest CIBC ABM is to your current location to help you save on banking fees.
- Look for free tools to help you monitor expenses: Manage your spending with free tools that help you keep track of your money. Using a debit card and reviewing your account history on your mobile device or laptop allows you to see exactly where you're spending your money and can help with budgeting. If you choose to use a credit card, look for one that offers tools to help you stay on top of your spending. CIBC CreditSmart credit management tools help track and manage spending by organizing purchases into 10 common spend categories. You can create customized monthly budgets online and set up Spend Alerts that notify you when you've exceeded your customized budget or are nearing your credit limit.
"It's never too early to create a financial plan that helps you manage your finances in school and start building for the future," says Kramer. "By following these simple tips, students can start building their financial confidence and take control of their finances to come out ahead."
More useful financial advice, calculators, product information and articles about student life written by students can be found at www.cibc.com/ca/student-life.
For more information and advice, visit www.cibc.com or your local CIBC branch, or call 1-800-465-CIBC (1-800-465-2422).
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.
Data source - Ipsos Canadian Financial Monitor: A profile of 18
to 24 Households, 12 months of data ending
April 30th, Ipsos Reid, July 2010. Responses show agreement of 7 or more on a scale of 1 to 10.