Money Tips
Think ahead to avoid the January effect
It’s easy to over-spend through the first term of a school year, when you might have a whack of cash in hand from summer jobs or through a new student loan. If that’s followed by a holiday splurge, you could be left suffering the “January Effect” come the new year. And the next term will seem a lot more expensive when you have less money in your pocket! Add up how much you think you’ll need to live on in the new year (use our Student Budget Calculator if you need help) and keep that ballpark number in mind – it’ll motivate you to spend your money wisely and stretch your budget.
Study cell plans - and save
You may think buying a handset is the most expensive part of having a cell phone, but the plan you choose can end up costing you hundreds, if not thousands, of dollars over the life of your phone. So before you commit to any cell-phone contract, make sure you research your options carefully and compare with other providers.
And if you don’t want to get locked in for two-plus years, consider a prepaid, or pay-as-you-go, plan, where you only pay for the minutes you use. Another way to save is through a family plan, which allows you to share minutes with other family members and call each other for free.
If you do decide on a service contract, before you sign, read the fine print so you know exactly what your plan allows and what the cancellation options (and penalties) are. Ask your carrier for an estimate of your actual bill with taxes and fees included to give you a realistic look at what you’ll be paying each month.
Submit a tip and win
Have a great money tip for fellow students? Share it here. If we use it in BMO SmartSteps for Students, you will receive a $50 gift certificate. Please see the terms and conditions for more details.
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