BE MONEY SMART

SAVING AND INVESTING AS A STUDENT

BY CHITWAN KHOSLA, FEATURES EDITOR

Many will argue and many more
will agree that a student's life

is hard. Apart from the quizzes,
assignments, and exams, living
off meagre money can be
stressful, too. Student loans

      

provide stability for a few years,
but those sit on the wallets for
almost a decade.

A common misunderstanding is
that one should start worrying
about their finances after they
graduate as there is nothing
much one can do until after
college ends. It actually costs
you more if you don't take
control of your finances at the
right time. The Other Press
talked with Gerald Finlay, a

personal financial advisor, who
explained: “Budgeting, saving,
and investing, all three, are
dependent on two factors—
money and time. Often many
don't realize that time is of

greater importance than money.

Students have time at their side
and they should make proper
use of it.” Every student tries

to be thrifty and thoughtful
about their spending, but they
don't save as much. Textbooks
are as expensive as rare jewels,
and rent in the Lower Mainland
is soaring high, which doesn't
leave much money to spare.

“The situation worsens when

you fail to acknowledge that you
need planning,” Finlay remarked.
Students who have any debts,
including student loans, need

to get more vigilant and should
hold the reins in their own
hands sooner rather than later.
This is because of the hidden
opportunity costs and the other
expenses related to student
loans. Jason Walkden, a Certified
Financial Planner, explained this
in detail: “Even though you don't
start paying back your student
loans until you start working,
you are actually missing on the
opportunity of getting free of
the loan as well. This is because
if you pay any money during the
time you are a student, it goes
towards the repayment of your
principal amount. Whatever you
pay after your completion of

the studies, the major part of it