Many students have an ambitious five year plan when they begin their post-secondary career.
Within the first five years, most want to own their first car, pay off their student debt, get married, and draw a good salary.
However, RBC Director of Student Banking, Laura Plant, says that initial optimism begins to change.
“Between first year and fourth year, confidence dropped in terms of earning that first hundred-thousand, getting married, and having kids,” says Plant. “And it really spoke to the fact that goals and priorities evolve over time, and that a whole lifetime passes between getting your acceptance papers and graduating.”
Plant says students who want to buy anything – from shoes to a first home – should come up with a detailed financial plan and stick to their budget, and shouldn’t be afraid to ask for advice.
She also emphasizes the importance of building up good credit.
“Thinking about a credit card, or if you’re getting a loan, really understand what it is that you’re getting into, understand that this is money that needs to be paid back,” Plant explains. “Also things like paying your phone bills, paying your gas and your heating bills.” (scb)