TORONTO, June 25, 2012 /CNW/ - The sun is shining, upbeat summer tunes are on the radio and in addition to patio time with friends, you've landed a summer job to help pay for your next school year. But what can you do to really make the most of your newfound income?
"As a summer student, this could be your first time earning a substantial paycheque, which is a great feeling," says Mike Henry, Scotiabank Senior Vice President and Head of Retail Payments, Deposits and Lending. "It's also the perfect time to really start thinking about how to put that money to the best use. By starting to save now, you'll be putting yourself in the best position for both the upcoming school year and your financial future overall."
The perfect time to start getting invested in your finances and learn what tools and products are available to help plan your finances is when you begin earning money.
"Earning money while still in school is the ideal situation to take advantage of all the savings and investing opportunities that are uniquely available to students," says Henry. "Learning about financial solutions that work for you at the beginning of your working life will put you in a great position as you map out your financial future while also starting good savings habits."
Scotiabank offers these top tips for student savers:
- Take the time to make a plan: As a first step, create a budget where you list out what you need versus what you want. When you first start making money, it can be tempting to spend it right away on big ticket items like new clothes or a trip. Think about your top goals for the next five years and beyond and decide which purchases fit into your plan. At Scotiabank's dedicated student website, fundyourfuture.ca, you can access special tools, like the new Student Budget Calculator.
- Check your wallet: You are earning and spending money - but is your credit or debit card giving anything back to you? Look into cards that offer rewards for your everyday spending so that they work for you. With the SCENE debit and/or credit card, you can earn points for free movies, music, concessions and more. Scotiabank also offers students a special L'earn Visa card, which has an accelerated money back program that earns money on money spent.
- Building credit the right way: Don't be afraid of getting a credit card - it will help you build the credit history that you need in the future. The key is to use it responsibly. Check your credit bill online often to keep tabs on your spending and pay off your credit card bill on time or early to avoid paying interest.
- Give your bank account a second look: Are you holding onto a savings account from your childhood that no longer suits your growing needs? Find a savings plan designed for students - Scotiabank's Student Banking Advantage plan is a no-fee account with no transaction limit that can be paired with SCENE or L'earn credit cards. By putting away even small amounts of money in your account each week, you can begin building real savings.
- Check in with an expert: Go to your local bank to touch base with a financial advisor for free advice on how to make the most of your earnings. An advisor can help you figure out what methods will best meet your savings goals.
- Go outside and explore: Summer is the season of warm weather in Canada with a lot of great outdoor activities, like festivals, many of which are free. Take advantage of entertainment possibilities in cities near you for some fun activities that won't strain your bank account.
For more advice on how to save as a student, please come in speak with a Scotiabank financial advisor near you or visit fundyourfuture.ca.
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 80,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets of $660 billion (as at April 30, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.
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