Budgeting Basics
What is a budget?
A plan for how you spend and save your money
What is one campus or community resource for financial wellness?
Financial Aid, counsellors
Name one mental health effect of ongoing money stress
anxiety, depression, sleep issues
What questions can you ask yourself before buying something
Do I need this? Can I afford it?
What is a red flag when it comes to money boundaries with a friend?
Someone repeatedly pressuring you to lend them money, asking about your finances, guilting you
What is one simple budgeting method students can use
50/30/20, envelope system, budgeting app
Describe the difference between wants and needs, and provide an example for each
Needs are things you must have to live (food, basic clothes, transportation).
Wants are things that are nice but not necessary (video games, eating out, new sneakers)
Why is talking about money helpful for mental health
Reduces shame, isolation, etc
What is one financial habit students can start this week?
Make a budget, save $5...
How can peer pressure negatively impact financial wellness?
Leads to debt or financial stress
Can distract you from long-term goals
Name one fixed expense and one variable expense
Fixed: rent or phone bill
Variable: food or entertainment
What is one sign that someone may be experiencing financial stress?
Feeling anxious about bills, avoiding checking bank accounts, or difficulty sleeping
How can overspending be linked to emotion?
Stress spending, impulse buying
What is one healthy way to cope with financial stress?
Talking to someone, planning, mindfulness
How can social media influence financial decisions?
Being convinced to buy a product/item you can’t afford
Promotes comparison (keeping up)
Encourages impulsive lifestyle decisions
Can make overspending seem normal
Name 3 types of savings accounts
RRSP
TFSA
FHSA
GIC
HISA
What does “living within your means” actually mean?
Spending less than or equal to what you earn.
How does financial stress impact your physical health?
Insomnia, high blood pressure. Headaches, undereating or overeating, weaker immune system
How can automatic savings transfer improve financial habits?
Automatically transferring money to savings ensures consistency, reduces temptation to spend, and helps build an emergency fund or achieve goals
How can students balance social life and financial wellness?
Plan low-cost or free activities
Set spending limits for social outings
Be honest about budget constraints
Save in advance for special events you desire
Your friend suggests using your credit card for a $500 purchase and paying it off later. What budgeting considerations should you evaluate before doing this?
Can I afford this?
Can you pay it off immediately to avoid high interest?
Will it affect your emergency fund or other essential spending?
Opportunity cost: Could that $500 be used for savings or academic needs?
What is one reason budgeting can feel emotionally difficult for students?
It can bring up stress, fear, or guilt around money.
How can I stop the cycle of impulse buying?
Deleting shopping or betting apps, not saving card details on line, enforcing a 24- hour waiting period before buying, making a list and sticking to it, unsubscribe, identify triggers, seek professional support
You tend to spend more when eating out with friends. What habit can help reduce this?
Set a weekly limit for dining out
Meal prep/ plan meals ahead
How can understanding your personal values reduce the influence of social pressure on spending?
Knowing your values (ex. saving for education, independence, travel) makes you less likely to spend to impress or keep up with peers