A solid plan can help students navigate the financial challenges of
TORONTO, Aug. 6 /CNW/ - As summer draws to a close and students head off
to college or university, many may be feeling a little anxious about how
they'll make their finances work, especially those students living away from
home and managing their own day-to-day expenses for the first time.
Recent industry research indicates that 40% of students aged 18-25 do not
feel well informed about personal financial products, compared to just 25% of
all Canadians who felt the same. In addition, only 47% of students aged 18-25
keep careful track of their finances, suggesting that more than half of these
students could be taking a more active role in managing their money(1).
"It's never too early to start thinking seriously about your finances and
setting goals for yourself, especially for students who may be taking
ownership of their finances for the first time," said Colette Delaney, Senior
Vice-President of GICs, Deposits and Payments for CIBC. "Money problems can
distract students from getting the most out of their education, which is why
it's so important for students to have a plan in place to help them take
charge of their financial goals before they start the school year."
Students can build their financial knowledge and establish a good
foundation for themselves by following a few basic financial planning steps:
- Identify your short and long term goals. Short term goals might
include a Spring Break trip or a new laptop, while your long term
goals may include a downpayment on a car for after graduation.
Determine what you want to accomplish within a timeline and work it
into your financial plan to help make that goal a reality.
- Make a budget. Take a few minutes to complete a budget using the
online budget calculator at www.cibc.com/ca/student-life, which will
help you determine all of your monthly variable, one-time and shared
costs. By going over this budget regularly and making adjustments as
you go, you can identify opportunities to cut costs, curb unnecessary
spending and start saving.
- Minimize your everyday banking costs. You have enough expenses to
worry about as a student, and everyday banking shouldn't be one of
them. A simple way to cut costs is to open a bank account with CIBC
Advantage(R) for Students benefits. Full-time students attending an
accredited university or college in Canada can open a CIBC bank
account with free everyday banking (including free withdrawals at CIBC
bank machines), no monthly fees and no limit on the number of monthly
- Avoid ABM fees. Save money by finding out where your bank's nearest
ABMs are and sticking to them for all your transactions. Using other
bank or 'white-label' ABMs will incur additional service fees. With
1400 ABMs within 1 to 2 kilometres of 180 colleges and universities
across Canada, CIBC clients are never far from their funds.
- Establish credit and manage it well. Start building your credit
history by obtaining the right kind of credit card and using it
responsibly. Ideally, you should pay your balance in full each month,
and avoid temptation by leaving your card at home or using it for
emergencies only. A credit card like the CIBC Classic Visa Card for
Students will give students convenient access to credit with no annual
- Start saving. Many students keep all of their money in just one
account which they use for all of their transactions, but it's a
better idea to keep short-term savings and long-term investments
separate to earn a higher return on your savings and to avoid the
temptation of dipping in. Consider a product to help grow your savings
like a fixed-term GIC, or build your savings through small monthly
contributions using a Regular Investment Plan.
"Do a little homework to determine where you stand financially before you
start classes, and what you need to do to walk out of your last exam in the
Spring in great financial shape," said Delaney. "Having your finances in order
allows you to stay focused on your studies and get more out of your student
experience, knowing that you have a plan in place and are building a
foundation for the future."
More useful financial planning, calculators, product information and
articles about student life written by students can be found at
CIBC is a leading North American financial institution with nearly 11
million personal 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.
(1) Forrester Research, Inc.: 2008 North American Mail Benchmark Survey,
For further information:
For further information: Doug Maybee, Director, External Communications
and Media Relations, CIBC, Tel: (416) 980-7458, firstname.lastname@example.org