GETTING READY FOR POST-SECONDARY EDUCATION
THE TIME OF YOUR LIFE Are you heading off to college or university? It s easy to take Libro to school with you! No matter how far you are from the nearest branch, you can access your account. Starting your post-secondary education is a big change! Likely, you ll be a lot more financially independent than you ve ever been it s a big responsibility! Come in and talk to a Libro Coach! Learn all about paying for your education, credit cards, and protecting your credit rating. Establish good habits now and be set for life. INSIDE Budgeting For School...2 Your Spending Plan...3-5 Websites...6 Go Free Bundle...7 Libro Can Go With You...8 The Exchange ATM Network...8 Credit Rating...9
Budgeting Tips for College or University Planning, saving & budgeting! Planning to attend a post-secondary school is a big decision. A post-secondary education is an investment and should be treated as one. The cost of higher education is steadily increasing, therefore saving and budgeting for post-secondary school is necessary. Bottom line: is your money where you need it when you need it? Budgeting is the foundation of good financial planning! The self discipline it takes to budget your money puts you in control and helps you achieve your goals. Develop habits now that will stick with you throughout your life. Keep your budget current - revise it as money levels change Review your budget monthly - are you on target? Set money aside for the big things such as rent, tuition and text books, and only touch it to cover those costs When you subtract your expenses from your incoming money, does it balance? What variable expenses (eating out, shopping, yoga classes) can you reduce if necessary? Live within your means. If you don t have money to do something you used to be able to do, then don t do it. Plan for the future and try to save money as often as possible, even if it is only $5 at a time Keep organized records of all your financial affairs (receipts, etc) Maintain a good credit rating (see last page for information) If you need to borrow, investigate all options and borrow only the minimum amount you need Save credit cards for emergencies only! Even in emergencies, limit credit card use and available credit. Preparing for the cost of post-secondary education How you fund your education is a decision that needs to be made early. Saving up for it yourself or with the help of your parents is your key to success, because full funding from other sources is not always available. Plus the more money you can save for your education the less debt you will face after graduation. -2-
Your Spending Plan It s important to learn how to handle your money so you re not short at the end of the month. Plan your spending so you're in control. The Spending Plan is a simple tool to help you make better money choices. When you see where it goes, you can figure out where to trim - without ruining your lifestyle. Tips Don t overestimate your income Don't underestimate your expenses Break annual fees into monthly amounts Remember school functions and those late night study coffees! MONTHLY INCOME: Wages/salary: Gifts: Other regular monthly income: Total Monthly Income: MONTHLY EXPENSES: Rent: utilities, cable Food: groceries, eating out Transportation: bus pass, car payments, maintenance, insurance Personal: haircuts, clothing, make-up Entertainment: books, magazines, movies, video game rentals, parties, music, hobbies Recreation: sports equipment, fees Irregular/Annual Expenses: driver s licence renewal, license plates, Christmas and birthday gifts, travel, memberships Total Expenses AMOUNT LEFT FOR SAVING (Income-Expenses) -3-
Pay yourself first Paying yourself first is the first step to financial well being. We recommend that everyone put at least 10% of their pay directly into a savings account, but when you are planning on going to university or college, we suggest increasing this amount. If you take a look at the way you spend your money now you will see that with a few adjustments you can save a lot of money on your own. Where does all my money go? Activity Cost One movie, every Tuesday, for a year $520 One coffee, every school day, for 8 months $258 Order pizza, once a week, for a year $780 One case of beer, once a week, for a year $2,002 A $30 hair cut, once a month $360 Lunch out, three times a week, for a year $907 Late video returns, 2 days late, once a month $144 $5 cover charge, once a week, for a year $260 Three bar drinks, twice a week, for a year $1,404 One pack of cigarettes per day, for a year $2,847 Total spending: $9,482 There are other options if you are unable to save the full amount you need for school. Part-time job: Check out work-study opportunities at your college or university or parttime jobs close to school to help take care of miscellaneous expenses. -4-
OSAP: The Ontario Student Assistance Program is a loan from the government that is interest free while you are enrolled as a full-time student. Apply at http://osap.gov.on.ca Apply regardless of whether or not you think you will qualify as there are grants available through OSAP If you are starting a program in September, you can apply as early as April of the same year (note: you should apply at least 10 weeks prior to starting the program) You must reapply each year if you want to continue receiving funding Funding is paid in a 60/40 split, meaning you receive 60% of the total annual funding at the beginning of your first semester, and 40% at the beginning of your second semester You will have to meet with a Financial Aid Representative at your school when you first arrive to sign loan paperwork. Book your appointment early to avoid long wait times (call the school the week before you start and see if they ll allow you to book the appointment) Make sure you have a void cheque to provide the OSAP representatives so the money can be directly deposited to your account Funds should arrive within two weeks of your loan paperwork being sent off to the National Student Loan Service Centre Scholarships: Apply for our Libro s Community Builder Scholarship which supports youth who demonstrate outstanding commitment to developing leadership skills while participating in community development projects. Libro will award ten $3,000 scholarships to youth ages 17 to 25. For more information visit libro.ca/scholarship Look for other scholarships and bursaries at: High school guidance offices Your college or university s website Your employer (several companies have employee scholarship programs) Websites such as: o www.scholarshipscanada.com o www.studentawards.com o www.canlearn.ca -5-
Libro student loan: Full-time students may be approved up front for the anticipated funding requirements of their full educational period, with funds advanced in stages with an approved co-borrower if necessary. A Libro student loan is a line of credit to cover education costs when OSAP or scholarship money is not available or not enough. Details include: Maximum of $8,000 per year to a maximum of $25,000 in total Interest must be paid monthly, but no principal payments are made until you are finished school Low financing rates Websites Here are some websites you might find helpful as a student. Libro Financial Group Ontario Student Assistance Program CanLearn Canada Student Loans Program Campus Access Scholarships Canada MySchool101 Ontario University Application Centre Ontario College Application Services Monsanto Canada Opportunity Scholarship www.libro.ca www.osap.gov.on.ca www.canlearn.ca www.hrsdc.gc.ca www.campusaccess.com www.scholarshipscanada.com www.myschool101.com www.ouac.on.ca www.ontariocolleges.ca www.monsanto.ca -6-
Go Free Bundle There s money for living, and money for saving. Keep everything straight with a solid foundation of Go Free Chequing and Savings accounts. Go Free Chequing Get a chequing account service charge free until you turn 26. It s the perfect fit for your day-to-day living. Go Free Savings Choose savings accounts that get you what you need short term for that super-sweet shoe sale next month or long term for spring break plans next year. You can have as many savings accounts as you need. You can even customize the name of each account online, to easily remember your savings goals, or just add a fun, personal touch. Go Free Bundle Options Like extra toppings on an already awesome pizza, load up on the following options for free! Unlimited debit card purchases Crazy ATM access across Canada Unlimited free ATM withdrawals through The Exchange Network Daily interest paid monthly Free mobile, online and telephone banking Student MasterCard credit card on approved credit First order of cheques free Interac E-transfer Profit shares Libro Financial Group is an authorized user of the marks. -7-
Libro can go with you wherever you go! Whether you are going to school close to home or traveling across the province or even across the country, you can take Libro with you. No Libro branch near your school? No problem! Here s how you can take Libro with you, wherever you choose to go: Mobile banking - access from your smartphone Online banking access to your account 24/7 Contact Centre prefer to do your banking by phone? Complete transactions or get advice over the phone with a Contact Centre representative at (toll-free from anywhere in Canada) Service charge-free chequing for those 26 and younger Access to over 2,400 surcharge-free ATMs, see below for info on the Exchange network. Talk to a Libro Coach to prepare for your journey ahead. The EXCHANGE ATM Network The Exchange ATM network enables convenient access to a very large ATM network at an affordable cost. ATMs that display this logo are part of the Exchange Network, which means you don t have to pay the convenience charge (typically $2.00) when you withdraw. Use these machines as often as possible to help you save money. You can also deposit at many of these machines. Look for these institutions that are part of the Exchange Network: o Most credit unions o National Bank o HSBC Financial Check out libro.ca for a map with all of the ATM locations across Canada. Cash back is available at several stores including: o Wal-Mart o Sobeys o Loblaws o No Frills o LCBO -8-
Credit Rating Your credit rating is one of your most valuable assets. It is based on how you have handled debt in the past, so your future credit rating is based on your credit behaviour now! Building and maintaining a good credit rating is part of securing a sound financial future for yourself. Your credit rating: is used to obtain mortgages, loans, credit cards and bank accounts has a direct impact on whether or not you will be granted any loans or credit cards that you apply for affects your loan interest rate can be used by prospective employers to gain insight into your character and what type of employee you may be You will have a better credit rating if: you don t carry an outstanding balance on credit cards you pay your bills on time your debt level is reasonable given your income and assets you have met all payment obligations on time for any outstanding loans Your credit rating can be negatively affected by: missing your due date for paying bills having a large number of credit cards applying for a number of loans or credit cards within a short period of time declaring bankruptcy having large and revolving balances on your credit cards Anything that shows up on your credit report stays there for seven years. In Canada, there are two organizations that monitor credit ratings: Equifax Canada 1-800-465-7166 www.equifax.ca TransUnion 1-800-663-9980 www.transunion.ca You can check your own credit rating once per year free of charge and it is recommended that you do to ensure you are not the victim of fraud or identity theft. -9-
LIBRO LOCATIONS ARKONA 7130 Arkona Rd., Box 2 NOM 1BO T: 519-828-3971 F: 519-828-3900 Toll free: 1-800-561-7541 BLENHEIM 11 Talbot St. W., Box 675 N0P 1A0 T: 519-676-8104 F: 519-676-0911 KITCHENER-WATERLOO: 420 Erb St. W., Waterloo N2L 6H6 T: 519-725-6060 F: 519-725-6161 55 Northfield Dr. E., Waterloo N2K 3T6 T: 519-744-1031 F: 519-744-4011 1170 Fischer Hallman Rd., Kitchener N2E 3Z3 T: 519-570-9955 F: 519-570-0292 LONDON 167 Central Ave. N6A 1M6 T: 519-673-4130 F: 519-642-1589 1867 Dundas St. E. N5W 3G1 T: 519-451-2200 F: 519-451-2167 841 Wellington Rd. S. N6E 3R5 T: 519-686-1291 F: 519-686-9347 1703 Richmond St. N5X 3Y2 T: 519-673-6928 F: 519-672-1873 ST. THOMAS 1073 Talbot St. N5P 1G4 T: 519-631-6195 F: 519-631-6196 SARNIA 1315 Exmouth St. N7S 3Y1 T: 519-542-5578 F: 519-542-3008 STRATFORD 391 Huron St. N5A 5T6 T: 519-271-4883 F: 519-271-3431 STRATHROY 72 Front St. W. N7G 1X7 T: 519-245-1261 F: 519-245-6391 WATFORD 5307 Nauvoo Rd., Box 550 NOM 2SO T: 519-876-2748 F: 519-876-2116 Toll free: 1-800-425-8855 WINGHAM 43 Alfred Street W., Box 690 NOG 2WO T: 519-357-2311 F: 519-357-3822 CONTACT CENTRE London: 519-672-7847 Toll free: Monday - Friday 8-8, Saturday 8-4 Automated Telephone Banking 24 hours a day, 7 days a week 919 Southdale Rd. W. N6P 0B3 T: 519-673-4130 F: 519 652 8143 libro.ca