You know that moment when your account reads ‘$3.27’ and there are still two weeks to go before the stock market? When every cup of coffee becomes a luxury, and just thinking about your student debts makes you sick to your stomach? You’re not alone; financial stress is a reality for many students. This stress, sometimes discreet but persistent, can drain your energy, prevent you from concentrating and take its toll on your mental health. The good news? By learning to better understand and manage your money, you can regain a little control and lighten the mental and banking load.
WHAT IS FINANCIAL STRESS?
You can experience financial stress in different contexts, particularly when economic insecurity makes it difficult for you to meet your basic needs, such as finding adequate housing or getting enough to eat. This stress can also be present even if you are able to meet these needs, but your situation does not allow you to respond to unexpected financial events. Accumulating debt with no clear means of repayment can also weigh heavily on your shoulders, as can the pressure associated with the responsibility of providing financial support for your family.
In higher education, this situation is particularly common because this may be the first time in your life that you have to manage an (often limited) income, regular expenses, tuition fees, student debts, and sometimes even meet your basic needs independently. Similarly, arriving from another country or moving to study adds an extra challenge. While working during your studies can help you to be financially secure, it doesn’t always fit in with the time you need to devote to your studies.
Whatever the cause of the financial stress, this type of worry can lead to long-term anxiety, difficulty sleeping, lower self-esteem and feelings of shame.
Strategies for coping with financial stress
Quand le stress financier s’intensifie, il peut être tentant d’adopter la stratégie bien connue de l’autruche : plonger la tête dans le sable en espérant que le problème disparaisse. Les questions financières peuvent effectivement être stressantes pour certaines personnes notamment en raison de l’historique familial ou d’un sentiment d’incompétence qui a été nourrit au fil des années. Toutefois, ignorer les factures, éviter de parler d’argent ou repousser les décisions ne donne qu’un court répit. En réalité, les soucis s’accumulent et le stress s’intensifie. Sortir la tête du sable pour essayer de comprendre sa situation, de chercher de l’aide ou de se fixer des objectifs accessibles permettra au contraire de reprendre du pouvoir, même petit à petit.
1- Develop your financial literacy
Financial literacy refers to the ability to understand and use money-related concepts effectively, such as budgeting, saving, credit, loans and tax. This knowledge offers greater control, stability and predictability at a time in life such as study, which is often fraught with transitions and uncertainties. It’s not a question of becoming an expert overnight, but simply of developing the habit of thinking about your financial choices and giving yourself the means to decide, rather than being subjected to them.
How
- Get informed with reliable resources: books, podcasts, videos, blogs or educational sites specialising in personal finance (such as Éducaloi, Autorité des marchés financiers, Desjardins, etc.).
- Take workshops or training: many campuses, libraries or community organizations offer free workshops on budgeting, credit, taxes or student loans.
- Keep a personal budget: use an app, an Excel spreadsheet or simply a notebook to track your income and expenses so you can better understand where your money is going. Université Laval’s Faistonbudget.ca website has an interactive calculator for creating a personalised budget.
- Ask questions without embarrassment: discussing money with people you trust (friends, parents, advisers, counsellors) can help you break taboos and find strategies that suit your situation.
- Try things out, even if they’re small: planning a purchase, comparing offers, putting aside a small amount each month… these are simple gestures, but they reinforce your skills.
2- Set your priorities
Drawing up a budget and having a clear view of your expenditure and income will enable you to review your priorities, eliminate unnecessary expenditure and make wise choices. This means taking a moment to look at how and where your money goes each month :
- How much money comes in each month (e.g. loans and grants, salary, help from your parents, etc.)?
- How much money do you spend each month, and on what (e.g. rent, groceries, transport, mobile phones, restaurants, coffee, subscriptions, etc.)?
The goal is to make sure you don’t spend more than you have and, ideally, to plan for the unexpected. It’s a well-known fact that you never know when your mobile phone is going to go, and a visit to the dentist can happen so quickly! This exercise will give you a clearer picture of your financial situation and help you make the right choices.
There is help available to manage your financial stress and improve your situation.
Your school’s financial aid department
This service is usually located in the student services section, where you can find out whether grants are available to you or whether an emergency fund is available. The counsellors at these services can also help you think about employment options that are compatible with your studies.
Financial aid for studies
These are financial loan programmes offered by the Quebec government to help pay for full-time or part-time studies. The aim of these programmes is to make post-secondary education more accessible to Quebec students who are less well-off or who live in remote areas. The amount of the loan is based on certain calculations and conditions. They are advantageous because they do not require repayment until graduation and even allow an additional 6 months to start repayment of the loan.
Your banking institution
Contacting your banking institution will allow you to assess the options available to you for managing your finances (credit, savings, opening an account, repayment plan, etc.) and get advice on how to avoid over-indebtedness. If you wish, this is the ideal opportunity to draw up a savings plan to help you deal with the unexpected, because even with small amounts, planning your finances over the long term can make a difference.
Questions to ask yourself to reduce your spending?
- Are there places on campus or in my community where I can get things for free or at low cost (e.g. community fridge, thrift shop, used book store, resale or barter group, etc.)?
- Do I know about student discounts?
- Could I cook more often at home and plan meals for long study days?
- Is using or buying a car essential? Could I give preference to cycling, public transport and car pooling?
- Could I shop around for my insurance or mobile phone package?
3- Find help
There is help available to manage your financial stress and improve your situation.
Your school’s financial aid department
This service is usually located in the student services section, where you can find out whether grants are available to you or whether an emergency fund is available. The counsellors at these services can also help you think about employment options that are compatible with your studies.
Financial aid for studies
These are financial loan programmes offered by the Quebec government to help pay for full-time or part-time studies. The aim of these programmes is to make post-secondary education more accessible to Quebec students who are less well-off or who live in remote areas. The amount of the loan is based on certain calculations and conditions. They are advantageous because they do not require repayment until graduation and even allow an additional 6 months to start repayment of the loan.
Your banking institution
Contacting your banking institution will allow you to assess the options available to you for managing your finances (credit, savings, opening an account, repayment plan, etc.) and get advice on how to avoid over-indebtedness. If you wish, this is the ideal opportunity to draw up a savings plan to help you deal with the unexpected, because even with small amounts, planning your finances over the long term can make a difference.
Services at your institution?
If you’re looking for professional help, most cegeps and universities offer a variety of support services for their students. Take a look at this page to find out what’s available at your institution.
References
Actives Minds. (2022) Managing Financial Stress: Tips for College Students – Active Minds
Chaire-réseau de recherche sur la jeunesse. (2021) L’endettement étudiant. Les enjeux jeunesse en images.
Gouvernement du Canada. (2019) Le stress financier et ses impacts
Gouvernement du Québec. Financial assistance for studies
Université Laval. Faistonbudget.ca
Credits
Illustrations : Mario Fontaine
Contribution to the article :
- France Landry, psychologist
- Isabelle Queval, psychologist
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