FROSH: Understanding financial literacy as a student

By Danijela Marcinkovic, September 11 2025—

For many students, attending post-secondary comes with many financial firsts: first job, first car, first student loan application. Some may build a habit of spending money thinking there are no strings attached. Getting your morning coffee to-go and eating out constantly may be convenient, but there are long-term consequences that come with poor financial regulation. 

Here are a few tips that will help grow your savings and optimize your spending habits all while still enjoying the university experience.

Utilize other sources of funding before student loans

While using student loans may seem like “free money”, student debt can creep up on you faster than you may think. Making use of scholarships, bursaries, and even your part-time job are more ideal ways of financing your education and living expenses. These options limit the accumulation of debt compared to student loans, which will ultimately drain your savings once you have to repay them. With the rising costs of living, claim the free money while you still can. Once graduation hits, you are often left on your own. 

Maintain a part-time job 

Having a part-time job in university is beneficial not just for the extra money in your pockets, but provides you with work experience that future employers often look out for. Even if it does not align with your desired career path, holding a part-time job provides you with experience that will help you in the future. Working while in school teaches time and money management, and it also allows for that bit of extra cash flow in case you need to fix a flat tire or splurge on new clothes. 

Never wait to save

It is common for students to unknowingly spend their money, especially once those biweekly paychecks hit. It is crucial to immediately set aside some money in your savings account. If you tuck away even just 20 per-cent of each paycheck, you will quickly see it accumulate. To further enhance your saving habits, talk to your bank about opening a tax-free savings account (TFSA). These accounts allow for investment options, which makes your money grow instead of just sitting in your account. It is also tax-free, meaning when tax season rolls around your money will be safe from the dreaded taxes you would otherwise have to pay on the money you earned.