Students, beware of Credit Card Teases

A new semester, a new stage in life, and a promising future, all await young students who will also slowly learn the "ways of the world." Year after year we hear about the cost of attending post-secondary institutions - that loans are not enough, books, and living costs are so much, and there is incredible debt to repay once a program is complete. It's ironic that those very students who will accrue the burden of heavy loan repayments, are often the main targets of banks and credit card companies. Just a word of advice for students. If you are tempted to accept a coupon for a free chicken snack pack, or get a free frisbee, or free cheap gadget, pen, poster, or anything free, then please think twice about it! If the deal involves signing you up to get a new credit card, ask yourself, do you want even greater debt? Or do you want to reduce debt, and save?

As a student, there are essentials, like texts, notebooks, rent, and food, but there are other "non-essential" expenses, that you can control the spending for. For many, perhaps most students, credit cards may be labelled a "non-essential". Question everything.

People may have different reasons for wanting a credit card, but just because it could be your first one, or another symbol of transitioning into adulthood, is not a good reason for it. Think about who benefits from your future credit card debt, who else, the companies and banks... laughing all the way back home, to the bank.

Keep in mind, that the interest rates are insanely high, and this is what helps them make their record profits from quarter to quarter. It will put you in more debt, and often times, it just is not necessary. In fact, there are many better options to increase your income as a student. MUN for example, offers 100s of part-time jobs like the MUCEP program. Do not be lured into increasing your future debt, but focus on keeping it to a minimun, and having more money now and in the future just for yourself and your needs.

There are several money managing sites that provide savings and spending tips, and online financial calculators to help budget. In fact, you can actually find out how much your program will cost, and how much you may spend or save on essentials and non-essentials.

Good luck students, enjoy your time while studying, and take care of your money, or someone else will.

Greyed Expectations

Reports say there will be increases in equalization to the provinces in the budget later today. Finance Minister Jim Flaherty says provinces will see it as a fair resolution to the fiscal imbalance problem, but not all provinces will be happy with it. Hmm, who could that be? The vibe is that the anticipated 50% inclusion of non-renewables will be part of the new principled long-term equalization formula. There are eight "have-not", sometimes seven, BC and/or SK could be "have" provinces again, so the money has to get split. Quebec gets over $5 billion in equalization each year, and may get the biggest share. The budget has some general tax cuts, and an incentive for hybrid car purchasers, but the bump in overall money for the provinces, the government hopes, will take the sting out of the broken promise he made on equalizaton.

The $1 billion he gave to Sasketchewan farmers might have smoothed over the expected budget news for many in SK, but not necessarily Lorne Calvert. Jack Layton has said a few days ago he supported the view that non-renewables should not be part of the new formula. Dion has not said much about this. There doesn't appear much anxiousness for an election. It won't be surprising if all parties support this budget, but the real proof will be in recipe of the pudding.