Acceptance into university, college or grad school is a major milestone, and your clients’ children should be able to attend post-secondary without racking up debt.
Scotiabank offers the following tips to manage expenses during the school year:
1. Make a plan: Create a budget where the student lists out what he needs versus what he wants for the school year. If kids are living away from home for the first time, figure out how much they can afford to spend each month.
2. Apply for scholarships, grants and bursaries: Most post-secondary institutions offer a range of scholarships and bursaries for students with different backgrounds and skill sets. Grants and bursaries can also be awarded depending on students’ financial need and academic and athletic achievement.
3. Consider loan options: Some important things to consider when taking out a student loan are how long it will take clients to pay it back, and in what increments. Also consider the interest rate, any repayment grace periods and the loan terms and conditions.
Read: Higher education is a financial nightmare
4. Build credit: Use credit to responsibly build the student’s credit history. Good credit will help the child in the future with things like buying a home or car. Tell him to check his credit bill online often to keep tabs on spending. Also have him pay off bills in full and on time to avoid paying interest.