by Divora Mehari | Jun 3, 2022 | Financial Literacy
HOW TO MAKE YOUR SCHOLARSHIP APPLICATION STAND OUT
Friday, June 3, 2022
At YNCU, we know thinking about starting post-secondary education is stressful, especially when thinking about how you’re going to pay for it. The Ontario Credit Union Foundation is providing funding for Ontarians looking to focus their studies in academic, vocational, or technical at an accredited post-secondary institution in Canada or abroad. CU Succeed Youth Bursary applications are NOW OPEN, you can apply here!
Applying for a scholarship is a smart way to reduce and stay out of student debt! Here are some tips on how to make your scholarship application stand out:
Know The Criteria
Before you begin your scholarship application, ensure you know the type of scholarship you are applying for. There are usually two types of scholarships:
Need-based scholarships: This type is awarded based on financial need. Grades and test scores are also considered but it is mainly based on your family income.
Merit scholarships: This type is awarded based on accomplishments in academic excellence, community involvement, leadership, extracurricular activities, or other factors.
For both of these types of scholarships, it is important to include all necessary documentation in the application. Read the directions carefully – they will tell you what you need to know. Note the deadlines, requirements, application demands, and any fine print. This information will help you stay on track to shine in your application. It is critical to submit by the proper day with all the items needed – this is the first step in making sure your application gets noticed.
Request Letters of Recommendation Early
The sooner you ask for your letters of recommendation, the more time you give your references to write your raving review. This way, you also have time to ensure it fits with your applications.
You may have general letters of recommendations for previous jobs, but this letter needs to be application specific. The people recommending you should write with your award requirements in mind.
Pay Attention to Detail
Once you finish your application, proofread everything. Ensuring your application is free of spelling and grammatical errors will help you look more professional. Read it out loud to hear how it sounds and have someone else read it over as well. Schools receive thousands of applications, and these small steps make a big difference in scholarship applications – so it’s important to pay attention to every detail.
Find Out What Makes You Unique
Scholarship applications are just about the academic requirements. Figure out what makes you unique so you stand out in the sea of other applicants. Why are you applying? What are you particularly good at? What inspires you? What are you passionate about? What do you do that not many other people do?
Don’t be afraid to ask your family and friends for help on what they think makes you unique.
Showcasing who you are allows schools to see your interests outside of academics. A well rounded student who has experiences outside of the classroom is ahead of the game. Many applications will ask you to write an essay, this is where you can really highlight your personality. Ensure you are answering the questions directly but add in your own personality and experiences. Your experiences have shaped who you are and organizations offering scholarships want to see that.
Know Your Audience
Knowing the criteria of the applications is important, but it’s also important to know who your application is going to. Doing research on the values and mission of who is offering the scholarship can help to make your application stand out further. By knowing your audience, you can highlight your interests that align with the organization and communicate more efficiently and effectively.
Writing an application that stands out will help set you up for not only academic success but financial success as well.
For all your general financial inquiries, visit your closest YNCU branch and talk with one of our advisors.
by Divora Mehari | May 24, 2022 | Financial Literacy
THE ULTIMATE GUIDE TO PAYING OFF STUDENT LOANS
Tuesday, May 24, 2022
Graduating from college or university is a very exciting time as you start your careers and begin living independently. But, it can also be a very stressful time as the reality of student loan repayment sinks in. Loans can feel very overwhelming, so having a plan on how to tackle them is crucial in setting yourself up for financial success. Here are six tips to prepare you for taking on those student loans:
1. Consider Your Spending Habits
As you graduate university, you will be responsible for your own spending habits. It is easy to lose track of your money if you are not conscious and deliberate in your spending. It takes time and commitment to get out of debt, so it’s crucial to be intentional about where your money is going. It is important to prioritize your spending to ensure you have enough funds to pay bills and uphold your other financial responsibilities even after making your monthly loan payment. Use YNCU’s financial goals worksheet to start setting these goals.
2. Set a Budget
Setting a budget is the most common way to plan your financial activities. By having a budget, you will be able to lay out your expected expenses and plan accordingly. YNCU’s household budget tracker will help ensure you are living within your means while still making regular payments to your student loan. Regular payments will help you chip away at your debt and maintain a healthy credit score. Be realistic about the budget you are setting to ensure you will be able to stay within it. Finally, make sure you have considered all aspects of your financial activities before creating a budget.
3. Start Right Away
The best way to pay off your student loans is to start as soon as possible. There is a six-month non-payment period where you won’t be charged interest on your loans after graduation. This is the best time to begin paying off your debt as it means you are making payments towards the principal and accumulating less interest overtime. You do not have to wait to pay off your debt. Starting early will put you on the best track to minimize what you owe.
4. Don’t Add More Debt
This seems simple, but we know that after graduation it can be tempting to jump into life by going on vacation or considering a large purchase, like a car. Although these are exciting plans, paying off your existing debt is the best way to gain future financial freedom. Getting rid of your debt becomes extremely difficult if you continue to pile on more. Make sure your budget allows for you to have fun while not increasing your debt.
5. Speak to a Financial Advisor
There are many strategies to paying off student debt, including consolidating or refinancing your debt. As a recent graduate, you may lack the financial skills and knowledge on how best to take on your debt. Different options could be beneficial for you depending on a variety of factors. Consulting a financial advisor allows you to be aware of all your options and can help reduce the amount of debt you have to pay overall.
6. Stay Motivated
We know it is challenging and overwhelming to pay off debt but don’t be discouraged, just keep going. The most important thing to remember when paying off debt is that even small payments over time can make a big difference, so don’t miss a payment and ensure you are meeting your financial goals by regularly checking in with your advisor.
Graduation is a big milestone in anyone’s life and can come with many challenges. Figuring out how to pay off your student loans can be simple if you plan ahead and stay on track.
by Hannah Johnson | May 6, 2022 | Financial Literacy
HOW TO TEACH YOUR KIDS ABOUT MONEY
Friday, May 6, 2022
Providing your kids with a solid sense of financial literacy can help develop their skills and secure a stable financial future in adulthood. Teaching basic skills around saving, spending and earning can go a long way when it comes to establishing good money habits. There are many different ways to build on your children’s financial knowledge as they grow, and the earlier you start the better.
Here are 5 tips to educate your kids about money:
Talk about money regularly
Normalize talking about money with your children. For many people, money is viewed as a sensitive subject that shouldn’t be discussed in front of children. But instead of allowing your children to draw on their own conclusions surrounding money, why not be open and honest with them about what to expect? By comfortably discussing finances with them, you help them develop a healthy relationship with money.
Set savings goals
Talk to your child about short-term and long-term savings goals. Setting and tracking goals is a great way to develop financial independence and learn the importance of budgeting. For example, when your children ask for a new video game, instead of saying yes right away, encourage them to save for it. This will help them learn the relationship between work and money, and help translate into more long-term goals such as saving for post-secondary.
Discuss needs vs wants
Help children distinguish between wants and needs. This will show them the value of saving and making good financial decisions. Needs might include the basics, such as food, housing, clothing and education; wants include the expenses you can afford with the money left over, such as restaurant meals or movie tickets. Knowing the difference between wants and needs will help your children prioritize their spending and live within their means.
Let them earn their own money
Encourage your children to earn their own money by doing chores, like taking out the trash or cleaning their room. This gives them the opportunity to be responsible while demonstrating the value of hard work and that money is earned. To get your child in the practice of saving the money they earn, try setting them up with a clear piggy bank jar. When you use a clear jar, this allows them to visually see their money grow over time.
Involve your children when discussing your finances
When they are old enough to understand, transparency is important when teaching your children about money. It allows them to see first-hand the process behind planning a budget, shopping smart or paying bills. By including your children in discussions surrounding finances or creating a budget, it helps them become financially literate and prepared for real life money situations when they’re older.
Money is a fundamental part of our society. If you want your children to excel at handling their finances one day, it’s important to teach them healthy money habits now.
YNCUniversity is here for all your financial literacy needs. Need one-on-one help? We got you! Reach out to our advisors HERE.
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by Divora Mehari | Apr 22, 2022 | Financial Literacy
HOW TO MANAGE YOUR MONEY WHILE IN SCHOOL
Friday, April 22, 2022
Going to college or university is an exciting new venture. For many young adults, this means living on their own for the first time, making new friends and maybe learning to balance school and a part-time job for the first time. With a number of new responsibilities to worry about, managing one’s finances might not seem possible on such a tight budget. But by planning ahead, you can avoid running into financial setbacks down the road and set yourself up for financial success in the future. So why not start now?
Here are four tips to help you manage your money as a student:
1. Set a Budget
Setting a budget is crucial while living the student life. This allows you to implement smart spending habits early and avoid accumulating debt. The first step is to make a list of all your income sources, including any savings, student loans and cash from your parents. The next step is to make a list of your estimated expenses for each month, such as rent, food and travel. YNCU’s Student Budget Tracker makes this process easy by helping you track your spending and reach your financial goals.
2. Build an Emergency Fund
Leave room for unexpected costs such as car repairs or medical expenses. This will help reduce a lot of stress that comes with these unforeseen events. An emergency fund is a financial safety net that’s set aside for unplanned expenses or financial emergencies. It’s recommended that your emergency fund have enough money to support you for three to six months of potential unemployment. In addition to keeping you afloat in times of need, this also allows you to practice good financial habits and avoid taking on unnecessary debt.
3. Cook Your Own Meals
Eating healthy meals while in school doesn’t have to be expensive. Students can reduce their food costs by shopping smart and cooking their own meals. This doesn’t mean giving up eating out completely, but cooking at home will help you save money and stay healthy. If you’re inexperienced in the kitchen, start with these student-friendly recipes. Once you’ve discovered your favourite recipes, you can start meal prepping for the week ahead.
4. Ask for Help
Don’t be afraid to ask for help. Many students lack the financial knowledge and skills needed to manage their money effectively. Speaking with a financial advisor will help you gain objective insight into your financial situation and learn how to handle important decisions. It’s also a great opportunity to develop a plan to meet your goals and manage obligations such as any student loans.
As a student, there are many opportunities to manage your money to ensure you’ll have a healthy financial future. If you need help getting started, our team is happy to help! Set up a Meeting with one of our experienced financial advisors who will design a custom plan to meet your needs.
by Divora Mehari | Apr 8, 2022 | Financial Literacy
TAKING CONTROL OF YOUR FINANCES POST-GRAD
Friday, April 8, 2022
As a recent graduate, you likely have your first job and are making more money than before. This life transition also brings new major goals, such as getting your first car, finding a new apartment, taking the next step with a partner and planning a future together. With a host of new priorities and responsibilities, having a plan on how to handle your finances is important. Financial planning might seem challenging, but there are many opportunities to set yourself up for success.
Financial planning involves taking a comprehensive look at your financial situation and creating a specific plan to reach your life goals. Good planning can help you establish the right financial habits to ensure you don’t fall into the cycle of debt. Are you ready to take control of your finances?
Here are four tips to help you start off on the right foot!
Create a Budget
The choices you make post-grad have the potential to impact your financial future. Budgeting is a powerful tool that can help you reach those next steps, such as buying a house or preparing for retirement. A budget is a system that helps track your spending and determine how much money is available to spend over a period of time. Ready to get started? YNCU’s household budgeting tool can help keep you organized as you learn how to manage your money and plan for the future.
Establish Savings Goals
Once you’ve created a budget that reflects your needs, set some savings goals. This will help you understand your financial priorities and what you want out of life. Whether that be to get rid of debt or buy your first home, establishing savings goals will allow you to be more deliberate about your spending and saving. YNCU’s free financial goals worksheet is a great resource to help you set short-term and long-term goals. Writing down your goals is an effective way to track your progress and hold yourself accountable.
Build Your Credit
Did you know having good credit comes with perks? Establishing good credit can provide access to many savings and benefits, including lower-interest rates, loans and credit cards. As a young adult, this is important to save money and reach your financial milestones. There are many ways to build your credit, such as paying your bills on time, getting a secured credit card and paying off debt.
Save for Retirement
The sooner you start saving for retirement, the easier it will be to reach your financial goals later in life. There are many different ways to save for retirement, but the easiest way to get started is by opening a Registered Retirement Savings Plan (RRSP). When you contribute money to an RRSP, your funds are tax-sheltered, which means your investment isn’t taxed until the year the funds are withdrawn, allowing the total value to grow quickly.
Setting some guidelines for saving after graduation will provide peace of mind knowing that you have a plan for the future.
Interested to learn what retirement savings options are available to you? Reach out to one of our advisors to learn more here.
We hope you find these tips useful as you start to build your financial plan. If you need help getting started, our team is happy to help! Book an appointment online to meet with one of our experienced financial advisors who will design a custom plan to meet your needs.
by Divora Mehari | Mar 25, 2022 | Financial Literacy
ACHIEVING FINANCIAL EMPOWERMENT: 4 TIPS TO GET OUT OF DEBT
Friday, March 25, 2022
Thirty-eight percent of Canadians say money is the number one source of stress in their lives and debt is a debilitating financial topic over which people feel they have little control. Many individuals struggling with debt say it affects their physical and emotional quality of life. If this resonates with you, this guide is here to help you take back control.
Understand Your Financial History
In order to achieve empowered thinking, it’s important to understand your financial history and how it shapes your idea about money and financial responsibility. For example, someone who was raised in a family where money wasn’t an issue may have a different perspective than someone whose family struggled to make ends meet. Understanding how one’s experience influences the way they spend money, make financial decisions, and their ability to reach financial goals is critical to their success in the future.
Pursue Financial Education
Personal finance is not commonly taught in schools, so much of what we learn about money comes from our parents and our own pursuit of knowledge. That means in order to learn more about basic financial topics such as budgeting, saving, debt and investing, we must seek out this information. Learning these important life skills will strengthen your financial literacy and allow you to make better informed decisions when it comes to managing your debt. If you have further questions, our team is here to help! — Let’s Connect for more information.
Change Your Mindset
Your money mindset influences how you save, how you spend and how you manage debt.
When you have limiting beliefs, they become thoughts, and these thoughts turn into actions that reinforce those limiting beliefs. If you believe you’re not good with money, you may spend carelessly and doubt your ability to save or pay off debt. Achieving a positive money mindset starts with giving up the limiting beliefs you have about money.
Be Intentional with Your Money
In order to see the light at the end of the tunnel when it comes to overcoming debt, it’s important to be intentional with your money. This means being deliberate about what you spend your money on, where you spend it and how you feel when making financial decisions. Being intentional encourages you to stick to a plan in order to reach success in the future. Here are three easy ways to be intentional with your money:
Track Your Money
Tracking your income and expenses allows you to develop a clearer picture of where your money is going. This will help indicate what you can afford and any areas where you can cut back. Building self-awareness over what you spend money on will give you new insight and perspective on your finances.
Set SMART Financial Goals
Turn your vision into reality by setting SMART financial goals – Specific, Measurable, Achievable, Realistic, Timely. Goals that follow this criteria are more attainable because they outline what you want to achieve, how and when you will do it. Download YNCU’s free Financial Goals Worksheet to start setting goals today.
Create a Budget to Stay Intentional
Spending money without a budget is like trying to get somewhere without knowing where you’re going. A budget provides you with the information you need to better manage your money. YNCU’s household budget tracker is a great resource to help you be more intentional with your spending.
Achieving financial empowerment over your debt takes time and commitment. But once you get there, you’ll be able to reach your goals with ease and make better financial decisions. Ready to get started? Check out our blog, to learn more about “How to Build a Better Budget.”
