Financial Literacy for Students: 3 Ways You Can Be More Financially Literate

Editor’s Note: This blog post has been written and published on the myBlueprint blog on behalf of GrantMe. Visit grantme.ca to learn more.

Don’t know where to start? No worries! Here are some Financial Literacy Keys that can kick off your literacy knowledge:

1. Take on more responsibility for your ‘Life’ Expenses

Before you graduate or go off to pursue post-secondary education, it’s important that you make time to transfer some of the living expenses and financial responsibilities that your parents cover for you, onto your plate. This will help prepare you for the huge amount of responsibilities that you will have to take on once you move out and start living more independently; like paying rent and buying groceries.

Learning how to handle basic ‘life’ expenses early on, will help with your transition into adulthood! Check out GrantMe’s blog if you’d like a quick and dirty guide to budgeting as a student!

These ‘life’ expenses can include items that you have to pay for directly, like when you go clothing shopping or out to the movies with friends; or investments that you may have to reimburse your parents for, such as cell phone bills or car insurance.

How can you help manage your life expenses more independently?

• Stick with a monthly spending budget based on your income and organize your spending habits for a broader range of needs and wants:
• Needs might include clothing, school or sports supplies, toiletries, gas, etc. These are the items that you will want to prioritize in your budget.
• Wants might include eating out with friends, gym membership, and other social activities. These are items that you can indulge in once your needs are met.
• Discuss and plan with your parent, or trusted guardian, the ways that you can save towards larger spending goals. Ask them about their own personal money management successes (and failures) so you can make wiser decisions!
• If you’re planning on going to post-secondary, make sure you apply to Financial Need scholarships! Don’t know the difference between Financial Need Scholarships and other scholarships? Click here to see if the following criteria applies to you!
• Obtain your own ATM debit card and open up a chequing and savings account. A debit card can be important for online purchases, travel, or in situations where carrying cash could be unsafe. Make sure to explore which bank will give you the best deals for gaining interest on your accounts!
• Always consider the price, value, and quality of what you are going to buy. Only spend what you can afford, and keep your values in mind when making purchases.
• Use online apps and banking functions to develop a budget and create a savings account. Keep track of your saving and spending through the app, and make notes on how you can maintain your financial goals. Think of other ways you can make an extra income. If you’re interested in investing as a student, check out this guide to investing as a student!

2. Gain Experience, Confidence, (and Cash) Through Work! By this time in your life, some form of employment is recommended for you to keep up with your own cost of living. Even if only during the summer, work experiences provide educational opportunities, beyond school and family, that can help you manage money and consider long-term career paths.

Employment experience can help you:

• Gain insight into an industry or work setting you might be considering as a future career.
• Learn important personal skills like time management, work responsibilities, and how to behave in a professional setting.
• Develop self-esteem and confidence.
• Practise how to balance your work life, education, and other time commitments.
• Gain financial stability for more flexibility in spending, and more growth in your savings.

A paid position also provides the foundation for a conversation about taxes! You should discuss the purpose that taxes serve with your parents or guardian, as your tax rates will gradually increase as your earnings rise.

3. Set Longer-Term Saving Goals This is the prime age to focus on additional savings, particularly from earnings. Ideally, you should be shifting your emphasis away from short-term spending habits, and towards more mid-and long-term goals, like college or university.

Even if your parents are covering the bulk of your college expenses, it is still wise for you to take part in the saving process for your future goals and commitments. At a minimum, you should be saving towards incidentals, travel, and activity costs.

You should also:

• Research the cost of college and the amount you will have to contribute towards your education. Set realistic expectations and saving goals for you to achieve before you start your studies.
• Explore ways you can cover necessary costs by working, saving, applying for scholarships, and exploring different college options.
• Commit to long-term savings in bank accounts, or consider introducing a micro-investing digital platform such as Acorns into your saving regime.
• Make use of the online tools available at your bank, and consider establishing a separate account from your parents to save for college or other long-term goals.
• Balance your own bank accounts by tracking deposits and withdrawals using online functions and/or personal finance apps that link directly to them.

Do you still want to know more about financial literacy?

Here are some helpful links for you to check out so you can strengthen your knowledge and understanding of what to expect when exploring your finances:

myBlueprint x Scotiabank Financial Wellness & Scholarship Hub Website: myBlueprint
https://education.myblueprint.ca/scotia/

• In a collaboration between myBlueprint and Scotiabank, this site offers students with post-secondary aspirations the opportunity to apply to a number of scholarships available from Scotiabank through an individual student’s myBlueprint hub.
• In addition to supporting students through scholarships, Scotiabank and myBlueprint aim to help students build strong money management skills through financial literacy content. Students can access articles with helpful tips/tools, and new content will be added regularly — so check back often!

Money As You Grow Website: Consumer Finance Protection Bureau http://www.consumerfinance.gov/money-as-you-grow/

• The CFPB hosts Money As You Grow, a dedicated webpage for parents and caregivers that identifies key stages of childhood financial development. The webpage offers practical, age-appropriate activities and conversation starters to help parents and caregivers encourage their kids to develop positive financial knowledge, skills, habits, and attitudes.

Money Smart for Young People Website: Federal Deposit Insurance Corporation (FDIC) https://www.fdic.gov/consumers/consumer/moneysmart/young.html

• This website offers free, downloadable lesson plans for financial education. The Grade 9 to 12 curriculum offers lessons on how to earn, spend, save and invest, borrow, and protect money. Learning objectives, presentation slides, and worksheets are included in the lesson plans.

Tips for Teens Website: themint.org http://www.themint.org/teens/saving.html

• This website, endorsed by ALA, introduces teens to earning, saving, spending, owing, tracking, giving, investing, and safeguarding through short articles and online games. A separate glossary is a nice reference for unfamiliar financial terms.

Warren Buffett’s Secret Millionaires Club Website: Genius Brands International, Inc.
http://www.smckids.com

• Warren Buffett’s Secret Millionaires Club is an animated series that features Warren Buffett as a mentor to a group of entrepreneurial kids whose adventures lead them to encounter financial and business problems to solve. The program teaches the basics of good financial decision-making and some of the basic lessons of starting a business. Young learners can watch the episodes, read comics play companion games, and learn online.