Hey students, here's how you can put some extra cash in your pockets

Parents socking away money for their kids’ post-secondary education and students just entering university got a wake-up call with new survey findings from CIBC this week. The poll found that found that only 20 per cent of parents correctly gauged the cost of post-secondary education tuition at between $6,000 to $9,999. But that’s not the worst of it.

Kathleen Woodard, senior vice-president of retail and business banking at CIBC, says those planning on heading to college or university for four years should count on a total cost of at least $100,000, or $25,000 per year.

“It’s important to take the time to think about how expensive school is, how expensive living costs and entertainment costs can add up,” says Alyssa Furtado, CEO of RateHub.ca. “Students will want to figure out: How much do I think I need for the year, what income do I have coming in, and how much can I spend each month?’.

“The most effective way for me is to track spending in spread sheet,” she adds. “Spending 20 minutes a week looking at it really makes you realize how much you’re spending on things. Students might go: ‘Wow, with that poutine I ordered after the bar and the round of drinks I bought, I spent $75 on Thursday night.

“Millennials are growing up in a culture that enjoys eating out, that enjoys having time with friends; having drinks on campus is part of many students’ university lives,” she adds. “So it’s not just about trimming expenses but also asking: how can you increase income? There are so many interesting options.”

Getting a minimum-wage job is not one of them. Bridget Eastgaard, who blogs at Money After Graduation, told RateHub.ca that when she was in university, she tutored chemistry twice a week for two hours and charged $25 per hour. She ended up putting that money toward a mutual fund, but you could also put that money to entertainment expenses; at that rate, you could make $4,800 in four years.

“Jobs that tend to work well for students are ones that provide flexibility of hours while also generating decent wages, like working as server in restaurants or bars, working in a lab or medical-imaging facility, tutoring, working as a yoga or fitness trainer, resume or thesis editing, or doing freelance work as a photographer, videographer, or video editor,” says Barbara Knoblach, a certified money coach with Money Coaches Canada in Edmonton. “Many realtors hire students to take pictures of properties that will go on sale, and that can be quite profitable as a side business.”

Starting a side business may be easier than you think. Ryan Shupak, cofounder of Jiffy—which connects customers with home-maintenance services, RateHub you can earn up to $40 for doing an hour of yard work or $50 for shovelling a driveway.

If you have to work in retail, don’t be overly tempted by the staff discounts, suggests Kelly Ho, a certified financial planner at Vancouver’s DLD Financial Group.

“Work somewhere where you’re not going to spend all your money,” Ho says. “Don’t work at Aritzia if you’re going to end up spending your entire pay cheque at Aritzia. Look for work somewhere you’re unlikely going to spend what you make.”

Joining the sharing economy is another effective way to bring in some extra money while you’re at school. Turo Canada, for instance, enables community members to rent their cars to travellers, earning an average income of $600 per month, according to RateHub.ca. Other ways to capitalize on your assets include renting out a room or a spare parking spot or selling clothes, sports gear, camera equipment, or other items you don’t use any more.

University students can use all the money-savvy tips they can get. Financial experts urge them to avoid getting into severe debt.

“I see the aftermath of it,” Ho says. “I see so many people with lots of student debt, and they regret it. They’ll say things like ‘If someone had guided me on cash flow during university I would be much better off today.’”

She suggests having a solid cash-flow plan. It’s not hard. Figure out what your income is and what your fixed costs are (rent, tuition, Internet and phone bills). Take the remainder and divide it up on a weekly basis. “That’s what you have to live on. No one’s telling you how much you can spend on coffee or movies; you get to decide. But the key to it is, you’ve got to use cash. The biggest pitfall for university students is they don’t understand how credit works, and before you know it they’re drowning in debt. Two dollars here, $5 there really adds up.

“Have a cash-flow plan,” she adds. “Otherwise you’re walking through the year blindly.”

Other tips:

- Avoid banks that charge big-bank fees. “If you’re a student, you can’t afford to pay them,” HO says. “Find a bank that doesn’t have bank fees. There are lots of them.”

- Shop Facebook. Second-hand textbooks have been around forever and re a great way to save money. Look to this social-media site for groups where you can buy other school supplies and clothes, Ho suggests.

- Watch food expenses. Buy in bulk; do a Costco run with a friend and split the membership fee and jumbo-size cases and costs. And eat breakfast. “If you don’t eat breakfast, you’re likely to spend more money on lunch,” Ho says. “A bowl of oatmeal holds me over until lunch. It’s really easy to make and it’s good for you.”

- Be on the lookout for free community events like concerts. They’re commonplace.

- Work out. “When you exercise you’re happier, and less likely to default to spending money to buy happiness,” Ho says.

- Have a visual reminder of what you owe. “Make it a poster,” Ho says. “It helps people remember they cannot spend beyond their means.”