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Feature Stories
Tales from the Vault!
Who's leading the charge? In banking fees that is!
What's that annoying ringing in my ears?
Toning down the high pitch of long distance plans.
My pockets are full and I can't get up!
Profitable investing for your summer stash of cash!
Fast Machines Your Parents
Never Warned You About!
Avoiding the pain of a megahertz computer purchase!
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Premiere Edition - October 2000
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| Next Issue: coming November 7th! |
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 Tales From The Vault
Who's leading the charge in banking fees?
It's bad enough when you return those long forgotten library books and face the tally of fees held up by some stern faced librarian, looking as though you've just brought back a long lost sheep to the flock. Fair enough, you are borrowing their books! But perhaps more maddening is when you go to update your bankbook and find a litany of charges on your account. After all, unlike the library, it is the money that belongs to you - money that you are lending the bank (which they in turn lend out at a much higher interest rate). So what is a student to do to avoid the charges that can eat into their hard-earned money they deposit?
The strategy should be to sniff out a basic no or low-fee account. With some accounts you may end up paying a flat fee for an account offering a lot of services that you'd never end up using regardless of how long you drift along in grad school. So stick to the basics; deposits, withdrawals, chequing, bill paying, automatic debits.
Expect to cut your fee costs rather than worrying about tapping into a chequing account that pays interest. Your regular banking account should be for short-term cash to cover your months' expenses plus a little extra for a safety cushion. Extra cash can be parked in places where you'll actually earn something (see the article: My pockets are full and I can't get up! Profitable investing for your summer stash of cash!).
Cutting the cost of lending them money: Getting a better bank for your buck!
Shop around for the student deal. Banks have to compete and as more institutions such as on-line banks start to offer financial products, they need to keep their existing customers and recruit new ones. And although you as a student may not have a ton of cash to dangle in front of them, you do have more banking years ahead of you than most of the population. So make a potential bank earn your business.
Many banks offer student deals. If you are under 19 most banks and financial institutions won't charge you monthly or service fees at all. However if you're older, you'll have to search a bit harder to get a deal - a search that could save you $50 to $100 or more per year.
Student basic packages range in price and the services they include varies widely. Bank of Montreal and Presidents Choice (actually owned by CIBC) came out with the cheapest of the basic plans...free! Scotia Bank and Western Bank also fared well with their a student flat fee package for $1.00 per month. Royal bank ($3.50 /month), Laurentian ($3.45) and Canada Trust ($3.45) were at the higher end. The plans differ significantly in the number of transactions that they include. For example, Scotia Banks' plan includes 8 non-teller transactions while Bank of Montreal's plan includes 15 self serve transactions. Presidents' Choice, TD bank and Van City student plans allowed unlimited electronic banking transactions. If you do very few transactions this may not be a factor, but if you do more than 5-8 a month you need to look carefully at how many your plan includes and what you are charged when you go over that amount. Scotia Bank for example, charges .20 for non-teller transactions over your allowed number, while Bank of Montreal and Canada Trust charge .50 for debit transactions over the limit.
Consider bank alternatives such as Credit Unions, Caisse Populaire, and Community banks. These tend to have lower service fees. For example Credit Union Atlantic, Niagara Credit Union, Desjardins Caisse Populaire and St Willibrord Credit Union all offer a no fee account for students. Credit Union accounts are insured, just as banks are, but they may not offer as many services as a bank. But if it's basic banking that you are after, they'll usually offer more than enough. In fact students (insert rankings chart) ranked them higher than banks. You should also check to see if they have an established network of ATM machines or if they will allow you to use other credit union machines without charge.
Don't buy more account than you need. There are a variety of accounts available, each offering additional services and features. The more you get, the more you will usually pay. Some accounts cover services such as free traveler's cheques, free money orders, cheque return, and unlimited transactions. Some banks will try and sell you more product than you need - at a higher price (sort of McDonald's style) - "would you like a big Mac deluxe, jumbo fries, and large salad to go with that small soft drink?" Your best bet is to make a list of services that you feel you will need. I.e. perhaps three ABM withdrawals, two automatic debits, three bill payments. Some services may be worth having based on your, shall we say, "acknowledged weaknesses". Say you have a tendency to write NSF cheques, (a faux pas that will cost you from $20 to $25 a pop), then it may be worthwhile having inclusive features such as overdraft protection.
Check to see if there is a minimum balance associated with the transaction fees that you pay. These usually range from $1000 to $1500 depending on the bank. That one withdrawal during the month that puts you below the limit can trigger a month's worth of service fees. To a student keeping enough money in your account to cover the month's expenses can be tough enough, let alone keeping an additional $1000 or more there on top of that. Most banks do waive the minimum balance on student account packages.
Be wary of additional fees not covered under flat fee plans. A flat fee plan often allows you a certain number of transactions such as electronic transactions, automatic debits, withdrawals, and bill payments but still charge a per transaction fee if you go over that limit amount. You may also have to pay for other services such as in-branch transactions, ATM withdrawals, and traveler's cheques. And what if you get fed up and decide to pull your money out of your bank and go elsewhere? You may get charged a fee for this snub - could be an ego thing I guess? Bank of Montreal for example charges an $8.00 fee for accounts closed within 90 days while Canada Trust charges $12.00.
Are there plenty of your bank's ATM machines close by? This can often be critical. If you have a low or no fee account with a particular bank but can't find one of their ATM machines for miles it may cost you if you end up paying hefty ATM machines every time you use another institutions' machines. (Perhaps you'll one day be telling your kids how rough it was when you were a kid and had to walk for miles in the blinding snow just to find your bank's ATM machine). The cost of using these other machines can range from $1.00 to $2.00 meaning a couple of these transactions can soon wipe out your monthly fee savings. Check for machines close to where you live, work or attend classes.
An expensive smile. That friendly smile of a bank teller usually comes with a price. Using the on-line or telephone banking will usually be a much cheaper route. Electronic banking is optimal for students as more students than ever are wired for the Internet (How many? Try your guess!.) Whereas some parents may look at ATM's and on-line banking with the same astonishment they would an offspring's newly acquired face piercings', youth have adopted on-line literacy as almost second nature. Scotia Bank for example charges students' .40 for in person transactions under their basic plan (just .20 for over the limit machine transactions), Canada Trust charges $1.00 for personal service (.50 for electronic transactions). Are Canada Trust's smiles 2 1/2 times brighter than Scotia Banks? - We think not!
From free to fee
Certainly "free" banking has been moving to 'fee" banking the past several years. And while free accounts
have become harder to come by, they still exist - particularly for students. They may just take a little more
effort to find. The President's Choice no fee account, Bank of Montreal's Instabanking student plan, and the no fee student packages offered by some credit unions are a good bet for students. If you have a lot of monthly transactions, then the President's Choice bank plan is likely your better bet. Either way, use of other banks' ATM's and human tellers will usually increase your fees regardless of the account package that you have.
Regardless of where you keep your money, always watch for new deals and specials that may provide better,
cheaper options, as well as en eye on any increases in the service fees you are paying. (Banks have to inform
you of these in writing 30 days in advance if you get a statement, or post them 60 days in advance in the
branches if you don't). As alternatives such as on-line and foreign banks continue to emerge, you may find even better alternatives to keep the money that you worked like a dog for, from becoming "fee infested". And with some careful planning, you may even earn some financial rewards in the process!
For where to park your money and earn more, see: My pockets are full and I can't get up! Profitable investing for your summer stash of cash!
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What percentage of graduating
Canadian high school students
now has access to the internet?
( i.e. at home, school or work )
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72%
86%
92%
95%
98%
Click here for the answer!
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Look who's feeling generous
Scholarship of the Month
Featured Award - Cross Border Cash: "John Gyles Education Fund"
Whereas many scholarships are limited to students in Canada only or in the U.S. only, this months-featured scholarship doesn't care whether it heads north or south of the 49th parallel.
Amount of award: up to $3,000
Number of awards being given out: not specified
Duration: one year
Application deadline: This award has three deadlines during the year, the
Next one being November 15, 2000
Award Description: This award is open to citizens of Canada and the
United States who are enrolled full-time at a post-secondary institution and
pursuing a program at the undergraduate or graduate level.
Qualification: Eligible students must have a minimum GPA of 2.7 (70%) and have full
citizenship status in either Canada or the United States. Criteria other
than strictly academic ability and financial need will be considered.
There are thousands of financial awards available to students.
To find out about the scholarships and bursaries you are
eligible to apply for, go to www.studentawards.com
to begin your free search.
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 What's that annoying ringing in my ears?
Toning down the high pitch of long distance plans.
While venturing away from home to attend school may be a welcome change, the cost of keeping in touch with those you've left behind may create some separation anxiety; between you and your money! In fact the free speech you experience in your classes usually ends when you try to stretch your self-expression beyond your local calling area.
The good news is that while most costs associated with school have risen the last few years, the cost of keeping in touch has actually gone down. However it can still cost you plenty, particularly if you end up in the wrong long distance plan.
The key is to pick a plan that fits with your calling pattern. If you have roommates you may want to choose a plan that fits with your collective chatting. Your best bet may be to examine your calling pattern the first month to see what type of calling you are doing. Determine:
- Who you call the most.
- How much time you spend conversing with frequent chatters.
- When you make the most calls (evenings? weekends? after midnight?).
- Where you are calling (in province? throughout Canada? overseas?)
Click
Here for a Comparison Table of Long Distance Plans
or view and print the PDF
version (Adobe
Acrobat Reader required)
Once you have detected a pattern, look at the various carriers' discounts to see which one is going to give you the maximum savings based on the time, duration, and frequency with which you call people.
If you (and or your roommates) consistently make a lot of calls and they are mainly in Canada you'll likely be best off with one of the flat fee plans. Not only do these usually give you a lower per minute rate, they also save you the time and hassle (if you have roommates) of having to go through every bill to figure out who each call belongs to.
While these plans can be a good deal, there's some catches to beware of. For instance the times for cheap rates can vary. Telus's flat fee rate plan begins at 5pm while other plans don't begin until 6:00pm.
Flat fee would also seem to suggest an unlimited amount of calling. However while Sprint, Bell and London Telecom offer unlimited calling plans for evenings and weekends, AT&T and Primus muzzle you after 800 minutes, while Telus dampens the party line after 1000 minutes (meaning by the end of the month you may have to talk less and talk faster in order to avoid additional charges).
If you find that you like to share your words of wisdom throughout the nation at all hours of the day, you may want to choose a flat fee package that allows you prime time as well as evening calls. The Northvoice flat plan allows you unlimited day or night in Canada, London Telecom allows you 5 prime and 5 off-hours per month (more expensive plans are offered as well), while Yapalot offers unlimited. The big drawback to Yapalot however is that your yapping can only be to people in one of Toronto, Vancouver and Montreal (Guess you're supposed to only make friends in those cities!?)
The big drawback of flat fee plans is that you cannot carry over unused minutes. So in a month like December (or if you suddenly turn introverted) you may not come close to using the allowed minutes. With the Telus, Norhtvoice and RSL plans you are charged for what you use up to the flat fee amount, whereas with London Telecom and Yapalot you'll still pay the entire flat fee amount regardless of how much you had to say that month.
Other fine points that can cost you:
What time increment do they bill in? London Telecom and Northvoice for example bill by the second, while most others such as Primus and Wintel, bill by the minute. While this may seem trivial if you make frequent short calls or get a lot of answering machines, this could make a big difference in your costs. The free call feature that plans such as Wintel and RSL offer, can also help cut your costs on frequent short calls.
Do they allow reverse calling? Not many offered this feature except a couple of London Telecoms' plans. If you have this feature it allows others to call you using an access code. Yes you are the one who pays, but on a flat fee plan it could be worth it, particularly if you split the cost with the parents and/or your long distance romance(s).
Do you have to pay any monthly and/or processing fee? To be blunt; we think the monthly fees are a bit of a gouge. Competition is enough that you shouldn't have to pay extra fees. We've thus tried to stay away from plans that charge these additional fees, although plans that deduct that from your total calls are more tolerable. We also found the Yapalot set-up fee of $25 was more likely to make us Yelp alot!
How long are you locked into a plan? Generally avoid locking yourself into any plan for too long say more than a couple of months. Competition is good and that great plan you have now may not be so great in a couple of months. While the Yapalot plan carried a low price, our commitment phobia caused us to wince at the 12-month contract it required.
Do you have to make a certain amount of calls to get the savings? If it is not assured that you'll make this each month it's probably best to avoid these.
Do you have the option of mixing two plans? By combining a flat fee add on package with a low per minute primary provider during the day you may be able to combine the best parts of two plans. The Primus and RSL anytime packages offered decent lower daytime rates without any minimum fee and could be combined with an add on plan such as London Telcom's flat rate evenings and weekends thus giving you maximum savings at different time periods.
Regardless of the plan you choose, it pays to review your plan regularly. It's a dogfight among the long distance carriers: today's long distance mongrel could be tomorrow's prize dog with a deal that's cheaper and more convenient. Your calling pattern may have changed: you may now have night classes meaning you make more daytime calls, or you may have put your long distance romance on, shall we say, permanent hold! Your selection of the best plan should reflect this. Now if only there was a plan that kept your roommates from hogging the phone?...
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Focus Fraud of the Month
Scholarship Search Services
Finding those lucrative sources of cash called scholarships has always been a bit laborious and an often-tedious process - okay it's been a downright pain in the butt! Little wonder then, that services have sprung up promising to provide a ìquick solutionî... for a fee of course! What these fee based scholarship services do is charge you a fee to do the legwork for you. For a set fee - usually around $40 to $200 (we found one that charges a staggering $695 - not sure if they include writing your finals for you in that fee!?), they will conduct a search and provide you with a list of scholarships and awards that you may be eligible for. What's implied is that they'll scour the ends of the earth to find awards that you would never have found out about otherwise. But will it actually mean more money in your pocket?
The hollow guarantee: Many of these services will offer you a guarantee on finding you scholarships. But check the wording carefully. The guarantee is only that they will find scholarships that you will be eligible for, not that you'll actually receive them. Keep in mind that many available scholarships have very broad eligibility criteria meaning it's quite easy to find at least some scholarships you'll be eligible for - something that you would have been able to do on your own anyway. The bottom line: These services are not worth the money - money that could be better spent on your tuition!
A better option: Clicking for Cash
Rather than hand over your cash, your best bet is to take advantage of the free scholarship search engines, which are offered on the Internet. Each of these will usually provide as good, if not better, results than the fee charging services.
These search engines ask you a series of questions: area of study, geographic location, interests, hobbies, etc. which create your profile. The search engine then matches your profile with the awards that are in their database to provide you with a list of scholarships and awards that you may qualify for. Most on-line searches also have a built in feature which notifies you of new scholarships that you may qualify for as some wealthy donor, company or organization decides to open their wallet for the benefit of students. There is usually some overlap in these search engine services but you are still best to register with a couple of them to ensure that you don't miss latching on to any of this available cash.
A few of the best ones to check out:
In Canada:
Scholarships Canada - www.scholarshipscanada.com
Studentawards.com - www.studentawards.com
In the U.S.
Fastweb - www.fastweb.com
The College Board - www.collegeboard.com/fundfinder/html/ssrchtop.html
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 My pockets are full and I can't get up!
Profitable investing for your summer stash of cash!
Saving: A "Parking" Spot
It's bad enough that the cost of a college or university degree has increased the past few years, but now trying to get a decent rate of return on your money can be an equally daunting task. Anyone who has squinted hard enough to find any interest earned in their bank statement knows that it is necessary to take a much more strategic approach merely to keep ahead of inflation. Product wise, there is a virtual overabundance out there; Mutual Funds, GIC's, Bonds, T-Bills, derivatives, aggressive funds, index funds.. the list goes on. But where best to "park" your cash for your situation?
For most present day college, university or upper year high school students the main objective is usually preserving your initial savings plus earning a safe and predictable rate of return. It would be great to be reaping the benefits of the double-digit returns that many stock mutual funds have realized (and proudly advertised) the past few years, however for a 1 - 12 month or even 2 year time period, stocks are likely not the route to go. The volatile nature of the stock market, could mean a short-term student investor using stock mutual funds may find their investment worth much less at the time they actually need the money for school.
Many students unfortunately let their money drift aimlessly within the confines of a regular bank account. In fact a recent study found that students almost three times as likely to use a bank account to save for university as any other investment vehicle. However when it comes to earnings, a bank account is usually one step up from stashing the money under your mattress (except that you'd likely get some free support from the mattress). Many accounts pay little, or in some cases, no interest at all. Fortunately there are other options:
Guaranteed Investment Certificates (GIC's)
You rarely hear others boasting about how they made a financial killing on GIC's, but then again you'll rarely hear stories of how someone had to take the year off school because their GIC's crashed. They're a safe place to park your money and make a predictable rate of return. Some banks, trust companies and credit unions allow you to invest in short term deposits with $1000 minimums for periods as short as 30 days and in fixed term deposits with as little as $500 for periods starting at one year. The interest on the fixed term deposits tends to be a least a percent or two higher, than on the short-term options. And once you've found a rate you like, ask for 1/4 to 1/2 % more! Banks have the flexability to give you a higher return than their advertised rate and they often will. And don't feel too guilty about asking - they're still making money even when they pay you this extra return. To compare the rate that these are paying, click here.
Canada Savings Bonds (CSB's)
These savings bonds are also particularly good for students in that they are available in denominations as low as $100. They too pay a guaranteed interest rate (one of the few guarantees you can count on from Ottawa these days) and after 90 days you can cash them in without penalty. Keep in mind that they are only available at one time in the year - usually the last couple of weeks of October. If you're going this route it's advisable to take them out in smaller denominations such as $100 or $500 so that you don't have to cash out large amounts when you only need a small amount of money. Provincial savings bonds are also available (usually around this time) and offer a similar rate of return. BC bonds for example are paying 5.60 redeemable after 6 months and are available in denominations as low as $100.
Money market mutual fund
For short-term deposits of cash you may want to park your money in a money market mutual fund. This usually provides a better rate of return than a bank account, but you are not guaranteed a set rate of return. The benefit of these is the accessibility of the money (a drawback if you are prone to spontaneous bouts of reckless spending). Despite offering returns better than most bank accounts they often have fees attached. Some of these funds may charge service or withdrawal fees along with the management fee, which they have - all of which can cut into the amount you, actually earn. So know ahead of time any and all fees involved.
Bank accounts that pay?
It can't be true!?! It used to be that to get a high interest rate on your money you usually had to invest a minimum of $500 and lock it in for a period of at least 30 days or more. But there's good news from cyberspace. There's now alternatives which are particularly great for students (and others that are commitment shy..with their money that is!) Virtual banks are offering a way to save money without minimum investments and time commitments. You can keep your $457.23 in an account for 27 days and still get an interest rate approaching that of GIC's and savings bond but have the flexibility to withdraw money, as you need it (usually with 24 hours notice). And how does this compare to traditional bank accounts? Of the options available in Canada ING Direct, Presidents Choice 5.0000 % and Amex bank are all paying roughly 5.0000 a rate which compares with most bank accounts which are paying somewhere in the neighbourhood of 0 to 1%. You may not be buying rounds tonight for your friends off the money you make in a virtual bank account, but you'll be growing your money at about 3-5 + times what you would with a traditional bank account.
The one drawback is that the interest rate is not locked in at any rate; bad if interest rates are falling, good if they are rising. However if a physical bank is not essential for you, these offer a great way to save.
Financial Viagra: Spicing up Your Returns
The investment vehicles that technology has spawned have become to our money, what Viagra has become to our parents. - without, of course, the dispensing fees! Combining these products with traditional banking products can make a big difference in the money that ends up in your pocket. A couple of strategies worth examining.
The Dynamic Duo strategy
While a chequing account won't pay you much and a savings account won't pay your bills, the two together will do the trick. Open a no or low fee account (as described above in Tales from the Vault: Who's leading the charge? ...In banking fees that is!) for your regular banking. This will be your payment centre. At the same time open a high interest paying virtual account, which companies such as ING direct, President Choice, Amex bank and others offer. While we don't recommend one over the other, watch to make sure there are no extra fees for the type of banking you'll be doing and check the ease with which you can transfer money in and out. Since money in these accounts is insured, all things being equal, we recommend going with the highest interest paying account. You can check here to compare the rates.
Start by putting the money you have for the school year in the virtual account. Then calculate how much you'll need for the month ahead. Transfer that amount (and perhaps a bit extra for a cushion) over to the no (or low) fee account, while leaving the rest to earn interest in your virtual account. As the end of each month approaches, repeat the shift of money needed for the coming month from the virtual account to your no fee account. This simple strategy of operating a no-fee account together with a virtual savings account can mean $100 to $300 or more in your pocket each year alone!
The Staggered strategy
Okay so the thought of quick access sounds appealing - too appealing, for you own financial health? We'll perhaps another option may work better. To avoid the temptation of blowing accessible cash, you may want to take out Guaranteed Investment Certificates with staggered dates of maturity. For example if you started school with $7000 to last you through the year you could invest what you don't need in GIC's that come due at different times when you'll need it. For example you would have a $1000 GIC mature in 30 days, one mature in 60 days, and one in 90 days, etc.. You'd in effect be setting up a monthly paycheck, which earned a return higher than a regular bank account and yet is safely shielded from shopping and spending impulses.
Using these strategies to make your money work for you while you are buried beneath a stack of assignments isn't going to make you rich over night. However they are safe and easy methods that will leave you with a bigger chunk of cash, both now, and in the future. Money, of course, that you are as deserving of as anyone.
General Parking Tips
- Keep large sums of cash in one of the higher interest paying options, while maintaining a low or no fee bank account for regular and everyday expenses.
- Check to see what the minimum dollar amount is that you can invest.
- Find out if your original investment is secure and if the interest rate is guaranteed.
- Check to see what fees and service charges apply to the money you have invested.
- Find out when you can redeem part or all of your investment and if there is any charge for doing so.
- In those prime savings months of summer set up an automatic savings plan to make regular contributions.
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Students rate their bank!
How did yours stack up?
In the University Applicant Survey, students from across Canada were asked to rate their satisfaction with the banking institution that they used on a scale of one (low satisfaction) to four (high satisfaction). Interestingly the top bank - was not a bank at all! It was a credit union, followed by Canada Trust (now owned by TD bank). Laurentian bank received the lowest customer satisfaction ranking among all institutions.
Among the big 5 banks: Royal Bank received the highest customer satisfaction rating, while CIBC received the lowest rating.
How would you rate yours?
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Fast Machines Your Parents
Never Warned You About!
Avoiding the pain of a megahertz computer purchase!
It's pretty obvious that computers are now a huge part of our life, for everything from banking and work to entertainment. And the trend is going to increase. I can picture us someday standing over the toaster talking into it as we recite a list of tasks for it and the rest of the appliances to do. Perhaps we will no longer have to ask someone out on a date. The lawnmower could probably drive over and do it for us - better that the lowly lawnmowers deal with rejection than us!
Our real decision is whether we want to shell out for one of our own or make use of the computer labs on campus. In some cases that choice is being made for us. Acadia University for example now requires every student to have a laptop when they attend. But for those who have a choice and decide to take the plunge the question becomes: How do you sort through the techno-babble to make a smart purchase rather than a purchase that smarts? Some simple strategies will keep your PC from standing for "Pretty Costly."
Prices will of course vary. Computers are a lot like car: generally the faster they are, the more they cost. In addition the amount of memory, the hard drive size (determining how much information can you store on your machine), the amount of memory, and of course the size of the monitor will also affect how much you will pay. Systems available generally cost anywhere from $600 to $1700 or more. So how fast and how big is enough computer for you? And what will this set you back? The most common mistake people tend to make when deciding this is either to:
Under buy: The computer may not run many of the new programs that you want to use, meaning your machine may only be good for running older programs and perhaps the odd game of computer solitaire.
Overbuy: You get a machine that can run not only existing programs, but also programs that haven't even been thought up yet.
Underbuying can leave you mid term not being able to run the programs that you need for your studies (perhaps forcing you to run out and buy another one that will - a costly process). Overbuying can be just as costly. Looking too far ahead may mean you'll pay top dollar just to have the fastest machine in your dorm. A couple of years from now, that machine will probably be worth a fraction of what it is now anyway and seem painfully slow despite the high price tag. For example a Pentium III 600 system (a speed demon at the time) sold for around $2100 just one year ago. Today a similar Pentium III 600 system sells for around $1100.
There are generally two views on strategy for a student buying a computer: One strategy says, buy as much computer as you can possibly afford (it's a strategy usually pushed by commissioned computer salespeople). We prefer the latter strategy; buy what you will need for your program of study with the assumption that you will have to upgrade 2-3 years down the road. The following steps will assist you in choosing what's the best deal for you..
Determine your needs for the area of study you are in. If you are an English major and will be using your computer strictly for churning out literary masterpieces, email, and surfing the net, you probably won't need the fastest machine out there. However if you are in a program such as Architecture or Animation, where you will be using more complex graphics programs, you may need a faster machine, more memory and a good video card. And if you're a gaming junky you may just throw all caution to the wind in order to get the fastest, most graphically sophisticated machine you can find!
Generally you should assess your present degree needs (usually the next 2-3 years), rather than looking at what you hope to be doing seven or eight years from now. If you are a starting undergrad with MBA aspirations you'll likely want to hold off on getting a machine to meet that program's computing needs just yet. To start with that programs'computing needs could change dramatically by the time you roll in, or they may require you to buy a certain type of computer like a laptop for the program at that time. Secondly, between then and now you may reject the corporate ways of the world and instead opt for another vocation - say social work, meaning your computing needs will likely change entirely.
Select Your Software. Before you buy a computer, check out the specific types of programs that you may be using for your area of study including which programs are supported at your school. Most colleges and universities (and some high schools) have facilities where you can demo various software. Also, many software companies (or www.download.com) let you download a free trial version from their web-site. Check at software stores on the advantages and disadvantages of different programs, including when these programs came out, the expected release date of the next version, how much computer power and memory they require and how much hard disk space they'll take up.
Select Your Hardware. Once you've selected the software programs you want to run, you'll need to choose the computer system capable of running them. Consider the components that you'll need. You may be able to get away without a printer (especially if you score a roommate with one!), but you'll usually need a modem to get on-line or perhaps an Ethernet card to dial into your school's network. Also consider whether you'll need a back up device such as a CD burner or zip drive (for when you accidentally hit ìdeleteî when putting the finishing touches on your term paper!). You can add these later but if you know you'll need it anyway, it may be cheaper to get it now as part of a system.
The Power Game: How much do I need?
|
Features |
Minimum system |
High power System |
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Processing speed |
200 MHz Pentium |
600 MHz Pentium III |
|
Memory |
32 MB min |
64 MB min |
|
Hard Drive |
2.2 GB min |
5.0 GB min |
|
CD-ROM Drive |
12 X |
24 X |
|
Monitor |
15î |
17î |
|
Internet Access |
56 KBPS modem or Ethernet card |
56 KBPS modem or Ethernet card |
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Back-up Storage |
Floppy drive |
CD re-writeable or Zip drive |
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Low price |
$600 |
$1,500 |
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High price |
$700 |
$1,700 |
Of course prices will vary depending on where you shop. We obviously recommend getting the best price, but if you are a complete technophobe it may be worth it to pay a slightly higher price and have the technical support.
Shop around carefully and write down the specs on what you are comparing (particularly the items listed in the chart). One computer may look like a much better deal then the other but if you look carefully you may find it doesn't have as much memory or it may include a smaller monitor. The difference between a 15" and 17" monitor can be $ 150 - $200 alone. Other tips to keep your computer budget from crashing:
Shopping Savvy
- Check for subtle, but important differences. Taking a techie roommate with you won't hurt either and will help prevent you from being sold more (or less) than you need when the salesperson goes off on some techno rant.
- If service and support are your top concerns, but you see a much better price at a superstore, ask whether a store with the service you want will meet the superstore price. Some will, just to get your business.
- Don't be afraid to negotiate. Just because the sign says "Lowest Price" doesn't mean it can't be lower. Also, ask them to throw in some free software, disks, guidebooks, etc.
- Keep your options open. Some computers can be upgraded without big expense. Ask what speed the CPU can be upgraded to, what the memory can be expanded to, etc.. This could mean big savings in the future.
- Ask what the return or service policy is. Do they service it on site (or at least close by) if it needs repair? Even if it's under warranty, having to ship it somewhere at your expense may erode any initial savings.
- When buying any computer equipment or accessories, ask what the price is rather than assuming it is still the advertised price. The industry is releasing newer models so rapidly that the price on the slightly older model you've chosen may be cheaper than the price marked or advertised the previous day.
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Next Month: Slightly Driven Drives; Alternatives to buying your computer new.
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Five easy dishes . . .
to keep you and your wallet full!
While the oil companies jack up the cost of their fuel for the road, you can actually lower the cost of your energy supply. Whether we're rushing to make those 8:00am classes or needing to munch during late night cram sessions, it's all too frequent that we go for the quick sugar fix of the campus variety store. But there's cheaper and more nutritious alternative fuels to keep us running smoothly. Some quick and easy snacks you can whip together on the fly:
Five easy Pieces
Ingredients:
1 cup dry cereal (Cheerio's, wheat or rice Chex, etc.)
1 cup peanuts or soy nuts
1 handful pretzel sticks
1 cup raisins
1 cup banana chips
Mix in a bowl, toss into a zip lock bag and toss in your knapsack for the trip to class.
The Seedier Side
Mix:
1 cup salted peanuts (or dried roasted peanuts)
1 cup raisins
1 cup roasted sunflower seeds
1 cup pumpkin seeds (salted or unsalted)
1 cup chocolate chips or M&M;'s
A great mix and munch snack.
If you can't stand the heat.... stick with quick cooking recipes. A few quick ones to try.....
Crisp and Crunch
Combine 1/4 cup of brown sugar with 1/3 of a cup of corn syrup in a 3-quart saucepan.
Mix until sugar dissolves and remove from heat. Stir in 1/4 cup of chunky peanut butter and 4 cups of rice crispy cereal.
Butter a 9 " by 12" (2-inch deep) pan and spread in mixture. Let cool.
Cut into 2-inch squares. Great for munching, these can be frozen and taken as needed for lunches and snacks.
Earth Bars
Ingredients:
3 1/2 cups quick cooking oats
1/2 cup peanuts
1/2 cup sunflower seeds
1/4 cup sesame seeds
1 cup raisins
1/3 cup honey or maple syrup (or corn syrup)
2/3 margarine or butter
1/2 cup brown sugar
1/2 teraspoon vanilla
1/2 teaspoon salt
Spread oats on a cookie sheet to toast. Bake for 15-20 mins at 350 degrees F till lightly browned. Mix other ingredients in a large bowl. Press into a greased 9" x 12" pan. Bake entire mixture at 350 degrees for 12-15 minutes. Let cool and cut into bars.
Brain Grains
Ingredients:
1 cup toasted oat cereal
1 cup old-fashioned rolled oats
1/2 cup shredded coconut
1/2 cup whole unsalted almonds
1/4 cup unsalted pumpkin seeds
1/2 cup wheat germ
1/2 cup shelled unsalted sunflower seeds
1/2 cup raisins
1/2 cup honey
1/4 cup light corn syrup
1/4 cup vegetable oil
1 teaspoon vanilla extract
1 teaspoon almond extract
Instructions:
Preheat oven to 325 degrees F. In a large bowl, stir together toasted oat cereal, rolled oats, shredded coconut, almonds, pumpkin seeds, wheat germ, and raisins. In a medium bowl, beat the honey, corn syrup, vegetable oil and vanilla and almond extracts with electric mixer at medium (or by hand) until well blended. Pour this liquid mixture over dry ingredients, stirring until well coated. Spread evenly on a greased baking sheet. Bake 20 to 25 minutes or until brown. Let cool completely in the pan. Break into pieces and store in an airtight container (if you do not devour all at once).
This makes about 5-1/2 cups of snack mix. Great for class or devouring during movies.
The great thing about all of these snacks is you can get ingredients at bulk food stores in the quantities that you want, without the paying for expensive packaging,
With most of these recipes you can be creative with the ingredients (adding chocolate - or even doubling the chocolate amount for that extra sugar fix). You can also customize them by adding different kinds of nuts or dried fruit. Perhaps buy a variety of dried fruit and nuts and mix and match to your preference, mood or budget.
Also some nuts and seeds are relatively cheap like peanuts and sunflower seeds ($0.50/100 gm) and soy nuts and pumpkin seeds ($1.50/100gm) while pine nuts ($5.00 / 100gm) and almonds ($2.50 / 100gm) are much more expensive. You may want to change the mix or substitute some nuts to meet your budget. Regardless, using this type of mix rather than grabbing a chocolate bar or candy will cost you a fraction of the cost leaving both you, and your wallet, smiling.
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Trivia answer: 98% of Canadian final year high school students said they had access to the Internet either at home, work or school. (University Applicant Survey (UAS) 2000, ACUMEN Research)
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Questions? Comments? Suggestions for The MoneyRunner? Write to us at Themoneyrunner@debtfreegrad.com
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