By Olga Bergmans
One of life’s biggest introductions to adulthood is the trials and tribulations of money, and more specifically, how to manage your money. Starting from an early age, we are taught ways to “be good with money,” to save, build a credit score, and more. I don’t know about anyone else, but I didn’t think credit was going to be something at 19 I would need to focus on just yet. The concept of money is a frightful one filled with uncertainty and doubt as we begin to explore this mature territory. However, students today must do so while navigating budgets in a city where rent prices have become crippling, and even our daily expenses aren’t safe from rising inflation. Managing costs, creating budgeting plans, and constant fears of spending have made money anxiety a real issue.
What is Money Anxiety?
Money anxiety is a basic term used to define stress that comes from finances. I can only list a few friends who do not have at least a little bit of money anxiety. This ranges from the friends who work part-time jobs, pay for their rent and food, versus the ones who commute, live at home, and have considerably fewer costs. Interestingly, neither group finds themselves worrying about finances and future costs any less, which proves that money anxiety can affect anyone. As most of us are currently in the middle of our university lives, we are beginning to plan our careers and potential living arrangements. Money anxiety contributes to this underlying worry and fear of expenses that have yet to be met.
How does it affect students?
It’s no secret that Toronto’s increasing rent prices have made it difficult for students to find housing and adapt to the rising costs of living in the city. According to the Rentals.ca September 2022 national rent report, Toronto’s rent has increased by 24% this year. On top of this comes the responsibility of managing tuition prices and school tasks. These juggling expenses are an occurrence that many students deal with, affecting stress levels and overall mental health. According to Forbes, a study done by Deloitte revealed the financial struggles of Gen Z. The article stated that: “When asked about their most pressing concern, the cost of living (meaning housing, transport and bills) was the top worry cited by Gen Z (29%). Only a quarter of Gen Z report that they can comfortably cover their monthly living expenses, and almost half (46%) say they live paycheck to paycheck.”
Tips (from a money-anxious person)
1. Create a budget plan that works for YOU
There will always be people you see online that can afford a seven-dollar coffee every day or ones that can treat themselves to luxurious shopping trips. Yet the reality is that no student has the same budget, and that’s okay! Financial insecurity is a common reality amongst many students, which is why it is essential not to compare your expenses to others and instead figure out the things that bring you joy (and are worthy for you to spend money on). This way, a budget plan can become your friend instead of your enemy. My tip is to make a light plan of the weekly things you like to spend money on (besides your necessary costs) to ensure that you have some tracking of your spending. But keep in mind the emphasis on the word light. Sometimes things happen, or life gets in the way, forcing us to spend money on unanticipated things. It’s important to recognize this harsh truth, so we can start learning ways to grapple with it.
2. Seek out budget-friendly tips
It can be hard not to get lost in the glitz and glam of Toronto life, where temptations to spend are around every corner. Luckily there are people online who have made a positive impact on the financial community, including CBC’s Street Cents, a group of content creators who work on providing budget-friendly living tips and ways to manage your money as a student. This makes the idea of money less scary as they’ve broken down a step-by-step guide to help ease the overwhelming feelings money anxiety creates. Each time a video shows up on my feed, I take the time to watch it, and I can honestly say I’ve garnered some valuable tips so far.
3. Adapt a step-by-step mindset
It can be difficult for our minds to not jump ahead to the future. Don’t get me wrong, proactive thinking and planning decisions that will benefit you financially are wise and recommended. However, they can also be debilitating. Worrying about these endless costs will only make the idea of managing money more difficult. I suggest breaking things down: perhaps a monthly budget works for you, and for some, a weekly plan may be more suitable. This plan can be customizable to how much you want to spend and put away into savings. The key is breaking down these expenses and focusing on what you need to be putting money towards. Not only is this helpful in the moment to calm your mind with expenses coming in left and right, but it will also stem a new habit. One where dealing with money can hopefully become a less stressful task that makes you feel in control.
The most important thing to remember is that everyone is trying their best. Money is a discipline that rules our world and can create an array of conflicts. But it is also how we make connections, experiences, and creations. If we can adapt ways to prioritize our relationship with money, our anxieties can begin to perish. And believe it or not, all the people who have told you “how to be good with money” are trying to figure it out just as much as you and I are.