Beating
the Post-Boxing-Day Financial Blues
A
Game Plan for Fighting Back!
Not sure of the origins of Boxing Day? Perhaps
it has something to do with the “one - two punch” that
your finances have suffered from the holiday expenses. Those expenses,
combined with the sudden realization that your money from first
term has been draining quicker that a keg at homecoming, can leave
you feeling a little financially bruised and battered!
But even if your finances are down for the count,
there are ways to prevent a complete knockout. A New Year’s
snap shot of your finances can help you pull together a financial
game plan, without reliving your worst calculus nightmares. A
quick plan can also prevent you from being forced into costly
mistakes - mistakes that can wreak havoc on your finances as well
as academic and personal life. For example waiting until March
to realize that you’re in dire financial shape can leave
you with few options. It may force you to take on a 20 to 30 hour
part-time job or it could lead to one of the most dangerous of
acts: trying to rely on those credit cards that were being flogged
to you in September!
These forced options can take a huge toll! Those
long part-time job hours can come just as the essays are piling
up and finals are approaching - cutting into your academics. All
this as you’re trying to choose next year’s courses,
secure a summer job and while your significant other is deciding
that it’s time “to discuss our relationship”. And
those credit card balances can come with a 16% - 20% interest
rate, plus fees attached!
To help avoid this path, simply go through the
steps outlined below and plug in the figures on the attached
chart. You'll end up with a financial road map for your second
term survival.
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Start by plugging in all the regular monthly
expenses that you’ll have such as: rent, phone bill,
bus pass, etc. - basically your cost of living and recurring
school expenses.
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Then plug in any one time or irregular expenses
you’ll have at the time that they will occur such
as: tuition, term book purchases, tickets home at reading
week and end of term, etc.
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Add in any debt payments such as monthly loans
and credit card balance payments on if you have them.
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Now plug in the money that you’ll have
to pay for your expenses this term at the times that it will
be accessible to you. Include money from bank accounts, Christmas
gifts from Granny, savings bonds, maturing Guaranteed Investment
Certificates, etc. Also include scholarship money or bursaries
that you will be receiving.
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Add in expected resources such as: earnings
from part-time jobs for the months that you’ll be working.
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Now add in any government student loan money
that you will be receiving.
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Now look at the bottom line. Are there months
when there’s not enough money to cover expenses?
If there’s not you should have enough to make it through.
If you’re short, than continue on to balance the numbers.
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Look back on your numbers to see if there is
a way to bring your expenses down for the term. If you have
a car (one of the biggest drains on a student budget), it
may be worth pulling it off the road and bussing it for this
term. Or perhaps if you’re trekking home a few times
during the term, you may consider reducing your trips home.
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Look at other sources of cash that may be available:
Bursaries? Work / study on campus? Help from mom or dad?
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Take a look at other additional options for
cash. Taking on a part-time job may be tough with a
full course load but it is much more manageable to take on
8-10 hours a week now than to cram in 20 to 30 hours per week
in March and April.
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Finally look at the emergency options open
to you. This may include bank loans, a bank line of credit,
etc. While loan debt can be a burden, looking at your financial
picture now will help prevent even worse forms of debt such
as cash advances on your credit cards.
If you do resort to a loan or credit line look
at the ways that you can reduce debt expenses. For example
if you have a credit card charging a high interest rate and
also have a line of credit, pay off the credit card debt entirely
with money from your line of credit. And most importantly,
take a pair of scissors and imagine that the credit card is
that last “F” term paper you got back. Now snip
away. How cathartic! With the credit card out of the picture
you’ll avoid the temptation of racking up those card
balances once again.
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