Fees That Students Need to Avoid

If you are in school, there’s no doubt that money is tight. Even if you are financing your education with student loans, that’s not your money, so you don’t want to be spending cash that you don’t have.

There are some expenses that students really should avoid. I think that these should be avoided by the entire population, not just students, but there’s no reason why students in particular need to be spending money on these things.

bills and mail

ATM Fees

ATM fees are a huge waste of money. It’s interesting because ATMs on campus tend to charge way more than your typical ATM, too. At $3-$4 per use, if you use the ATM even just once per week, you are throwing away up to $16/month! That amount of money could afford you a much needed night out after a final.

Imagine how much you could have if you put the $16/month into a TFSA, or even an RRSP with compound interest when you graduate!

Banking Fees

I can’t believe people still pay banking fees for personal chequing accounts. You’re actually paying the bank to borrow your money from you and make money off of your money!

Banks can charge quite a bit for this “privilege”, so if you’re still stuck in the banking fee trap, find out whether your bank offers a student account for free.

If it doesn’t consider transferring to a free bank, like ING Direct. Use my Orange Key and get $25 to start you off when you open a new account.

Interest Fees

I’m all for credit cards, as long as they are used responsibly and the balance is paid off every month. After all, credit cards can go a long way to helping you reach your goals by providing rewards points and letting your money hang out in your savings accounts accruing interest for the month. However, many college students in particular don’t use their credit cards properly. This translates over to the college student paying interest on their cards.

Interest is the biggest waste of money in the world next to late fees. Don’t get stuck in the interest trap.

Late Fees

Late fees are insane. I could never be comfortable paying a late fee. One time I forgot to pay my phone bill on time, and I had to pay a late fee of $37. That’s a LOT of money for a student, and all because I didn’t remember to pay a bill.

Don’t get stuck paying any of these fees. When you are in college, ever single cent counts toward your ability to graduate in a good financial position. Don’t jeopardize that!

 

These are all pointless fees that you shouldn’t be paying for if you are a student because they are needlessly expensive. Don’t waste your money, you aren’t a money pit.


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