I got called by Insight Magazine to give some advice to new grads on what they should be doing about their finances, many years ago. It was so long ago, the magazine no longer exists. I gave some answers to the interviewer, but as usual, I was not sure I was very clear or eloquent, so now I will attempt to be more clear to those that might have read the article.

Get The Heck Out of Debt

You have just graduated from University, and you might be carrying upwards of $70K in debt (hopefully in student loans only). You most likely won’t be paying that debt off in your first year of working (should you find a job right away). If you can pay it off, good for you! However, you should put together a plan on how you are going to pay off that debt and WHEN it will be retired.

Carrying debt is a drag on your finances, and the sooner the debt is retired, the easier your financial life will be. You should not aspire to “get used to living in debt”, this is the one thing my generation does NOT want to hand down to you.

Don’t Fall In Love With Having Money

Just because you have graduated from University and you no longer have to eat Kraft Dinner with Hot Dogs for dinner, does not mean you must go out every night to eat. You have lived a frugal lifestyle as a student (I am assuming), but if you continued that frugal lifestyle for a while longer, you may be able to pay down your debt faster and then be on a much stronger footing financially.

Yes, you deserve to enjoy life, but it is very easy to get used to the “Let’s go out to dinner tonight we deserve it” lifestyle, and once you are in that lifestyle the habit is very hard to break (speaking as a 49 year old, I can attest to that issue).

You cannot live your parents’ lifestyle (yet) so don’t try. It took them 30 years to get where they are, don’t rush your spending habits to mimic their spending habits.

If your parents paid for you to have a Samsung or an iPhone or paid for your Cell phone bill, maybe it’s time to get rid of this expensive toy? You don’t need $120 a month cell phone bills. Discretionary spending (i.e. money haemorrhage) is a bad thing which you must watch diligently. Middle age mens’ wastes spread, but their spending spreads like that as well, don’t let it happen to you.

Have a Savings Plan

The sooner you start saving, the better it will be for you when you reach my age, however, saving while still carrying discretionary debt (i.e. non-mortgage debt) is paying Peter to feed Paul. Lowering your debt is first and foremost, if you have left over moneys from your year, yes, starting an RRSP early is a good thing to do, but pay your debts first.

Savings is good, getting out of debt is better.

Get the Heck out of Debt

Did I mention this yet?

Banks Can be Negotiated With

As I have pointed out before Free Banking is possible, but it is more likely for old farts like me, who have a good track record with the bank already.  Paying $12-$25 a month in bank service charges you should try to avoid, since you most likely don’t use enough services with the bank to justify this charge. Go with as cheap banking as you can.

The Three Worst Ideas After Graduation

1. I deserve a new car! -or- I deserve a vacation in Las Vegas!
2. I’m a little short until my next pay cheque, I’ll get a pay day loan
3. I am only carrying a few hundred dollars on my credit card balance this month

Keep this in mind, did I mention Get the Heck Out of Debt?

Last Pieces of Advice for New Grads

• Don’t move back in with your parents if you can help it. They love you, but maybe it’s better to stay away.
• Always buy the first round if you are out drinking. Seriously, that is a bit of Life Hacking I was glad I was taught.
• Marry someone who has similar financial aspirations as you. Money destroys more relationships, than religion.
• You will make mistakes financially, the important thing is to learn from them.
• Get out of debt, not sure I mentioned that one.

Originally published in 2010

For students, there are a few well known tax credits, however, many forget about moving expenses.

As long as you are going farther than 40 KM from home to go to school, you should be able to claim line 21900 Moving Expenses.

Kind of Moving Expenses

As a former Co-Op student, I ended up moving every 4 months. I became quite adept at making my life fit the trunk of a Mercury Zephyr.

Remember it is important to keep all receipts and proof of distance in case the CRA wants proof of moving.

Stats Canada put out their yearly report Tuition fees (in Canada) for degree programs, 2019/2020 a while ago. It has some interesting data including the fact that Tuition Fee costs for undergrad students dropped for this year (with a caveat).

Ontario led the way with a 9.9% Tuition drop. In fact in the rest of Canada Tuition went UP? Isn’t it great how large data sets can skew things?

Remember we are only speaking of Tuition Fees and the Business of University Fees encompasses far more than just tuition. Evidently those fees have dropped slightly as well, but I am skeptical.

The other factor in Ontario is the revamping of the OSAP pay outs, so students get a large amount less than they have in previous years.

International Students face a tuition hike, which is where a lot of Universities are making their money.

Most Expensive Degrees

A very good graphic explains that.

The above graphic should emphasize the importance of an RESP for parents who think their kids might go to a post-secondary program. Don’t expect Tuition Fees to drop again any time soon.

I have written previously about my 4 best investments, but I feel it is important to update and follow up on that statement. I now feel I have 5 best investments that I can boast about. No, this is not another 5 best stocks to invest in right now article. Plenty of other places to find that information.

In 2018 one of my daughters graduated as a Chiropractor, so now my 5 best investments are

• A Bachelor of Arts from Wilfrid Laurier University
• One Bachelor of Kinesiology from Acadia University
• A Bachelor of Science from Trent University
• Teaching Certification from Queen’s University
• Doctor of Chiropractic from CMCC

The last 2 investments I didn’t actually spend that much on. The previous three investments I feel were mostly my investments. I did have a rule that I pay for the 1^st degree (and if I pay for a degree I don’t pay for a wedding). As with all rules they have not been adhered to verbatim.

My parents invested in my education, and for that I am eternally grateful. I have had folks comment that if a child pays for their own education, they are more invested in the process. In my case, letting my parents down was actually a strong motivating factor. That makes it a wash in terms of arguments.

I like the fact that it wasn’t a foreign investment either. I don’t think I could have afforded sending my kids outside of the country. It was expensive enough out of the city.  If you are planning on helping your kids, an RESP is where you should start with your plan, and then look into CO-OP programs, OSAP and the Scholarships out there (and there are many).

Regrets?

My guess is if I hadn’t put the money away that I used to help my kids’ educations I would have blown it on something stupid, so I am glad I can point to something tangible for where the money went. It has also been pointed out that I didn’t do any of the work (aside from repairing a few computers). Why is this a good investment? I have always relied on the good works of others.

Guess the title is a bit of clickbait, but at least it wasn’t 5 best stocks to invest in right now.