Budgeting For Back To School In Canada
With the significant rise in such living costs as food and gas, as well as the current difficult economic conditions, the costs associated with returning to school can be overwhelming for many families. Whether it is High School or University, families are now finding it difficult to meet education expenses. When preparing to return to school in Canada, it is important to create a budget that will put you in control of your finances.
Statistics Canada reports that "Expenditures on school supplies, textbooks, tuition fees, other courses and lessons, and educational services were reported by 43% of all households in Canada in 2006. As well, 5.5 million households reported expenditures on education." The Quarterly Retail Commodity Survey reports that "the total clothing and accessories sales across Canada in the third quarter of 2007 included $245.4 million in sales of girls' clothing and accessories, and $227.6 million in sales for boys' clothing and accessories. The total value of sales of unisex clothing was $125.7 million."
With the cost of living so high, it is a great time to implement the following budgeting tips:
1. Calculate Total Income: It is essential to know how much money you are bringing in each month. Prepare a list or table of your income sources. This can include: loans, student grants, and job income.
2. Calculate Total Expenses:
Fixed Expenses: Prepare a list or table of all of your monthly fixed expenses. This can include such costs as tuition, books, computer, school supplies, transportation, rent, heat, telephone, utilities, and monthly credit card payments. Calculate your total monthly expenses.
Flexible Expenses: Make a list of monthly expenses that are mandatory but can vary depending on how and where you spend. These include laundry, food, clothing, toiletries, ...etc. Calculate the total flexible expenses.
Discretionary Expenses: Make a list or table of such discretionary expenses as entertainment, dining, and unexpected expense amounts, ...etc. Calculate the total discretionary expenses.
Calculate the total amount of your Fixed Expenses, Flexible Expenses, and Discretionary Expenses.
3. Determine Budget Amount: Subtract the Total Income from the Total Expenses to determine your budget. If your Income is less than your expenses, then return to your expense list and make adjustments until the budget is balanced. For instance, find ways to cut costs such as shopping at used textbook stores, second hand clothing stores, and looking for back to school sales, etc.
4. Monthly Budget: Once you have a Total Income and Expense Balance, divide the amount into a monthly budget list or table which will show you how much you can spend each month.
When budgeting for the school year, make sure keep your receipts and avoid using a credit card and department store card as much as possible. The high interest rates will only add more debt to your budget. If you have extra money at the end of the month, apply it to your debt. It is important to prioritize your expenses and eliminate unnecessary expenses. Every month, review your budget and update it when necessary. Just because budgeting is challenging, that does not mean you cannot live on a practical budget. In fact, now is a great time to learn how to create and live within a budget. In the end, it all comes down to the fact that you are going to school or giving a loved one the chance to go to school to create a great future. - 16931
Statistics Canada reports that "Expenditures on school supplies, textbooks, tuition fees, other courses and lessons, and educational services were reported by 43% of all households in Canada in 2006. As well, 5.5 million households reported expenditures on education." The Quarterly Retail Commodity Survey reports that "the total clothing and accessories sales across Canada in the third quarter of 2007 included $245.4 million in sales of girls' clothing and accessories, and $227.6 million in sales for boys' clothing and accessories. The total value of sales of unisex clothing was $125.7 million."
With the cost of living so high, it is a great time to implement the following budgeting tips:
1. Calculate Total Income: It is essential to know how much money you are bringing in each month. Prepare a list or table of your income sources. This can include: loans, student grants, and job income.
2. Calculate Total Expenses:
Fixed Expenses: Prepare a list or table of all of your monthly fixed expenses. This can include such costs as tuition, books, computer, school supplies, transportation, rent, heat, telephone, utilities, and monthly credit card payments. Calculate your total monthly expenses.
Flexible Expenses: Make a list of monthly expenses that are mandatory but can vary depending on how and where you spend. These include laundry, food, clothing, toiletries, ...etc. Calculate the total flexible expenses.
Discretionary Expenses: Make a list or table of such discretionary expenses as entertainment, dining, and unexpected expense amounts, ...etc. Calculate the total discretionary expenses.
Calculate the total amount of your Fixed Expenses, Flexible Expenses, and Discretionary Expenses.
3. Determine Budget Amount: Subtract the Total Income from the Total Expenses to determine your budget. If your Income is less than your expenses, then return to your expense list and make adjustments until the budget is balanced. For instance, find ways to cut costs such as shopping at used textbook stores, second hand clothing stores, and looking for back to school sales, etc.
4. Monthly Budget: Once you have a Total Income and Expense Balance, divide the amount into a monthly budget list or table which will show you how much you can spend each month.
When budgeting for the school year, make sure keep your receipts and avoid using a credit card and department store card as much as possible. The high interest rates will only add more debt to your budget. If you have extra money at the end of the month, apply it to your debt. It is important to prioritize your expenses and eliminate unnecessary expenses. Every month, review your budget and update it when necessary. Just because budgeting is challenging, that does not mean you cannot live on a practical budget. In fact, now is a great time to learn how to create and live within a budget. In the end, it all comes down to the fact that you are going to school or giving a loved one the chance to go to school to create a great future. - 16931
About the Author:
Amy Nutt is a freelance writer who writes on a variety of financial topics including personal budgeting and debt consolidation. For more information about personal finance and credit counselling, ConsolidatedCredit.ca is a tremendous resource on the topic for Canadians.
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