Top Five Tips to Help Students Stay on Top of Their Finances

University students have enough to worry about. They need to work hard, achieve good grades and worry about whether a job will be available for them after they graduate. The last thing on their minds is money. After all, the government is paying for everything, right? Well, yes and no.

What students have to remember, especially those receiving Student Finances, is that the money they get to go to school is borrowed money. That means the money has to be paid back at some point.

"What really would have helped me in school was totally understanding what I could do to prepare for the payback period," said, Cam, recent University Graduate. "In the back of your mind, you know you have to pay it all back you just don't thing about it until that payback time comes. Then you have nothing.

There are things students can do to prepare for the 'pay back' period. The following are the top five things students should concern themselves with even before graduation:

1) Understand finances - Students need to understand exactly where their finances stand. Regularly reviewing financial statements along with their credit reports from all three credit reporting companies is a good way to understand where they stand at any given time.

2) Watch for danger signs - Negative records such as late payments and collection accounts can remain on credit reports for 7 years. Students can keep their future finances healthy by avoiding these problems from the beginning. Library, cell phone and video store late fees can sometimes be turned over to collection agencies who may then report them to the credit reporting companies. So graduates should keep an eye out for these as well.

3) Create a spending plan - Developing a monthly spending plan can help students understand how much they need to pay toward their debts and how much they can afford to splurge. Generally, low interest rates make it possible for graduates to spread their student loan payments over the life of the loan, but they should focus on paying off high interest credit card debts as soon as possible.

4) Prepare for emergencies - A few preparations for the worst-case scenario can help students and recent graduates avoid financial problems in an emergency. To start, they should build up enough savings to cover their expenses for two to three months. If they find themselves out of a job or unable to pay back their debts, graduates should immediately call their creditors and lenders to explain the situation. Many federal loan programs have deferment and forbearance programs that allow borrowers to put their debts on hold temporarily.

5) Consider consolidating - Look into your loan consolidation options. Often, students who consolidate within six months of graduation or who sign up for automatic payments can save even more.

In addition to the above, it is highly suggested for students to apply for any and all Bursaries and/or Grants they qualify for. This helps not only to bring down overall debt but also to help create a platform for future endeavors.

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Resources:

Trans Union: www.transunion.ca

Cam, former University student, Manitoba