Do you wish to study in Canada? Then it is essential to create a perfect budget plan to make your student life in Canada more economical and manageable. It would be best if you do a detailed costing of your tuition fees and living expenses while planning to study at a college or university of your choice. The overall cost will depend on several factors, such as the institution you select to study, the location, and your intended lifestyle. Read on to learn more about the different costs and how to design a perfect budget plan for managing your expenses effortlessly.
Considering all the expenses associated with your student life in Canada is important when planning a study budget. Your tuition fees are certainly one of the essential costs among them. You must pay an upfront full/partial tuition fee to the college/university for enrolling in the study program and attending classes. Your tuition fees can vary depending on the below-mentioned aspects:
It is highly advisable to go through the official website of your college/university to get a clear idea about the tuition fees you need to pay. Apart from the tuition fees, you may have to pay the administration and student union fees, depending on your college/university.
The cost of your books and other study materials will depend on the college/university and the specific program you select. To get an accurate estimate, it is ideal to have a detailed check about the cost with your college/university or any student who has already enrolled in your study program. You can also consider doing the following things to minimize the expenses for your books and other study materials:
The money you will spend on your living expenses will significantly impact your economic situation after you complete your study. You can go through the college/university website to know about the student residential and meal plans if you plan to live on the college/university campus. It will be less expensive if you plan to live in shared accommodations rather than going for single rooms. You will also be able to make substantial money savings in terms of electricity, tenant’s insurance, and internet when you live off-campus on a shared basis with your friends or family. You can also check the website of certain colleges/universities as they provide provisions for off-campus accommodations.
Make sure the cost of your meals is included in your budget planning. There are grocery shops out there that offer special deals on some days of the week. You can also ask for available discounts when you are out to dine.
Usually, private health insurance coverage is included in the student fees. The major benefit is that you will get insurance coverage for your medical/dental expenses, which the provincial/territorial health insurance coverage plan does not cover. You may also opt out of your college/university coverage if your job or family has private insurance coverage. You can check with your college/university to confirm if you are eligible to do so. Most colleges and universities in Canada will require students to opt out in the first few weeks of the academic year. Furthermore, you may be asked to submit proof that you already have insurance coverage from a different source.
It is ideal for checking the public transit pass expense if you plan to use public transit for commutation to school. Certain colleges and universities provide public transit passes for their students as a part of their tuition fees. Always include the cost of transportation in your budget planning if you intend to go on summer vacations or visit your home. Most Canadian passenger trains, bus companies and airlines offer students discounted rates. You can also enjoy special offers on shopping, museums, travel and more if you have an International Student Identity Card (ISIC). ISIC is proof of the student’s status which is accepted internationally.
Clothing, entertainment, and gadget costs are other miscellaneous expenses you need a good idea about to plan your budget. Always stick with what you really require to avoid unwanted expenditures. You can use your student discount cards to save money on such expenses.
There are chances for an increase in the cost of your textbooks and living expenses due to inflation. In Canada, the average inflation rate has been 2% in recent years. Therefore, as a student, you must add rising expenses to your study budget plan.
Consider the different income sources accessible to you when preparing your budget plan. You can get income from your savings or work part-time while attending college/university. Apart from co-op and internship programs, you can also check out online job boards and the job bank to find work from a list of jobs available to students. These jobs are provided to students from employers all across Canada. The Federal Student Work Experience Program (FSWEP) will help you get public service jobs related to your study program. Both summertime and part-time jobs are available under the FSWEP.
Some temporary work agencies can help you to find work in an office or any other location for a short time. Additionally, you can find a job at restaurants and retail stores that require additional staff, especially during the winter holidays. You can also try to get a scholarship, college/university grant, or a government-authorized student loan to increase your income.
Students can avail of tax credits and deductions. However, the eligibility will depend on whether you are a full-time or a part-time student. Always file your returns every year without fail so you don’t have to pay any penalties. A non-refundable tax credit minimizes the tax amount you owe. You may be entitled to non-refundable tax credits for expenses such as:
Being a student, you may be entitled to tax deductions for your childcare expenses, moving expenses and other tax deductions. There will be a significant impact on the yearly tax returns by taking benefits of your tax credits and deductions.
