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Juggle your credit, savings and education like a boss

November 20, 2024

It can be tough to save for a rainy day when you’re on a student budget. Especially since you’d probably (read: totally) rather spend your paycheque, loan, scholarship or transfer from grandma on something else.

Whether you’ve got your eye on a new winter coat, bike, car, dinner out, metro pass, the latest iPhone, a weekend getaway or an apartment that doesn’t tilt to one side, chances are you want something. Who doesn’t?

And to get it, you need—you guessed it—money. To help you pick up good saving habits and start putting a little something away, we’ve got a few suggestions and tips for you.

Desjardins youth offer

Before you can start putting money aside, opening an account is a useful first step. You need a regular account that lets you deposit your paycheques, potential loans and scholarships, withdraw cash, pay your bills (like your cellphone, car and insurance) and buy stuff with a debit card. But how do you know which account is right for you? 

Desjardins offers an everyday account with the Unlimited free monthly plan,1 which can be tailored to your financial needs. 

It includes: 

  • Unlimited regular transactions on AccèsD and with your debit card (on request) at ATMs2 and the teller counter
  • Access to the ACCULINK® ATM network 
  • Free Interac e-Transfers® included with the Unlimited plan
  • Free account statements

Service fees may apply. For more information, see desjardins.com/fees.  

Save without a second thought (or almost)

Now that you have an everyday account, it’s time to talk goals and dreams!  

Yup, your goals! Like that cross-Canada road trip you’ve been planning with your partner and your dog. Or redecorating your apartment and finally getting furniture that you love. Or that emergency fund you’ve been wanting to start up just to be on the safe side.

We all have goals—the trick is turning them into reality within your budget. Granted, figuring out where to start can seem overwhelming. That’s why you can always meet with an advisor for help making a financial plan that’s right for you. But in the meantime, here’s a life hack to get you started:

Use the Savings goals feature on AccèsD to help you:

  1. Create a savings goal. Save up for that dream vacation, new car or to have some just-in-case money.
  2. Set a savings amount (say, $3,000).
  3. Open the account where the amount for your goal will add up.
  4. Decide how much you want to contribute and how often. 

And then get out there and make your dream happen!

According to Angela Iermieri,3 Financial Planner at Desjardins, choosing to save is a great start, even if it’s just $20 per week. “You won’t even realize you’re saving, and the more goals you set for yourself, the more you can achieve,” she says.

What does $20 a week come out to?

If you do the math, $20 a week works out to $1,040 a year and $10,400 after 10 years—and that’s without counting the interest that gets deposited into your account! Now, imagine if you could go from $20 to $40 a week. Just think about it—it’s exciting!

Credit cards can be handy and practical

Saved up enough for that ski week in Whistler or camping trip at Sandbanks Provincial Park? Congrats! With all that money you’ve saved up, you need a credit card for all sorts of things: to rent a car, book a hotel or Airbnb, or reserve a bus ticket. They make life a whole lot easier.

Depending on the card you choose, you could get special perks like: 

  1. Cash back1 
  2. BONUSDOLLARS Rewards Program4
  3. Insurance for your mobile devices5
  4. Free travel insurance for the first 3 days1

Naturally, credit cards need to be paid off

The best advice we can give you? Use your card only when you have the money to pay off your purchases. As Angela reminds us, you should ideally pay off your credit card in full and on time every month. “It will help you avoid spiralling into debt,” she says. “If you only pay the minimum, you’ll end up paying more in the long run.” Who wants to pay twice for their road trip from Gatineau to Lac-Saint-Jean? No, thank you!

From course credits to credit score

Paying off your credit card on time can have a positive impact on your credit score, if you’ve also got a handle on your other debts.

Why does that matter? Because the higher your credit score, the easier it will be to have future loans approved after graduating—whether it’s for your first new car or the house you’ve been dreaming about since you were a kid. “It takes years to build up a good credit score, but you can wreck it overnight,” says Angela.

So to sum up:

  1. Having a credit card is super useful—it makes buying things easier.
  2. Don’t forget to pay it off ASAP for the good of your credit score.

Having a line of  credit : Is it a good idea?

What’s a line of credit?

A line of credit is a pre-approved amount you can use however and whenever you want. The interest rate on a line of credit is generally lower than on a credit card or personal loan.

Consider a student line of credit if you’re not eligible for government loans and bursaries or if you want to top up your loans.

Find the line of credit that’s right for you.

Still have questions?

Since we always have one or two that come to mind later, feel free to speak with one of our advisors. 

1. Some conditions apply.

2. Additional fees of $1.50, $3.00 or $5.00 may apply to withdrawals made from non-Desjardins ATMs affiliated with the Interac and PLUS* networks. Some ATM operators also charge additional fees to use their machines. They must notify you via an on-screen message before you go ahead with the transaction. You’ll then have the option of cancelling the transaction. These fees are added to the amount of the withdrawal and are paid directly to the ATM operator. For more information on service fees, go to desjardins.com/fees. 

ACCULINK® is a registered trademark owned by the Canadian Credit Union Association (CCUA), used under licence. 

Interac® and Interac e-Transfer® are registered trademarks of Interac Corp. Used under licence. 

3. Financial Planner and Mutual Fund Representative for Desjardins Financial Services Firm Inc. 

4. Cash back is calculated based on a percentage of purchases made with the card. Merchandise returns, cash advances, cash advances by equal installments, RRSP cash advances, promotional and regular cheques, in-store Accord D financing, interest charges, purchases of foreign currency, electronic funds transfers, money orders and any type of purchase made in a casino are excluded.

* Trademark of Visa International Service Association and used under licence. 

5. Conditions and limitations apply. Insurance coverage is underwritten by American Bankers Insurance Company of Florida (ABIC). ABIC and its affiliated companies and subsidiaries operate in Canada under the corporate name Assurant®. Assurant® is a registered trademark of Assurant Inc. Details of your insurance coverage, including definitions, benefits, limitations and exclusions, are in the Certificate of Insurance provided with your card.