How to Budget as an International Student in Canada

Studying abroad is an exciting opportunity but may have financial challenges. For international students in Canada, managing expenses while juggling academics can be a daunting task. From tuition fees to daily living costs, understanding how to budget effectively is crucial to making the most of your Canadian education experience.

Creating a budget is a key step in managing your finances successfully. This article explores various aspects of budgeting, including income sources like scholarships and part-time work, essential expenses such as accommodation and health insurance, and ways to save on lifestyle costs. It also provides practical tips on making and sticking to a budget plan, helping you, as an international student in Canada, handle those Canadian dollars wisely as you focus on your studies minus the financial woes.

Understanding Your Income Sources

As an International student in Canada, you will have several options to finance your education and living expenses. It's crucial to explore these sources to create a balanced budget. We take a look at the possibilities.

Scholarships and Bursaries

Scholarships and bursaries are excellent ways to fund education without needing repayment. Scholarships are typically awarded based on academic or extracurricular achievements, while bursaries are granted based on financial need. Institutions, organizations, governments, or individuals can offer these.

Research opportunities for international student scholarships in Canada. Many Canadian universities offer entrance scholarships for outstanding academic achievement or specifically for international students. Be sure to check out EduCanada for other scholarship opportunities.

The application process for international student scholarships in Canada and even bursaries can vary widely. Some may require essays or references, while others might be based solely on grades or extracurricular activities. For bursaries, students usually need to undergo a needs assessment and provide information about their income or their parent's income.

Part-time Work Options

Most international students with a valid study permit can work up to 20 hours per week off-campus during academic sessions and full-time during scheduled breaks. To be eligible, you must:

• Be enrolled full-time at a designated learning institution (DLI)
• Be in a post-secondary academic, vocational, or professional training program lasting at least six months
• Have started your studies
• Have a Social Insurance Number (SIN)

You can work multiple jobs to make up these hours as long as they continue to meet the conditions of their Canadian study permit. Students can work unlimited hours during scheduled breaks like winter and summer holidays.

Explore the most popular part-time jobs for international students in Canada.

Family Support

Family support can be a significant source of income for international students. This can include financial assistance from parents or other family members. Additionally, if your spouse or partner joins you in Canada, they may be eligible for an open work permit. This allows them to work for any eligible Canadian employer for your study permit duration, potentially supplementing your income and savings.

Creating and Sticking to a Budget Plan

Creating a budget is crucial for managing your finances effectively. By following a structured approach, you can ensure that you cover all necessary expenses while still having room for savings and entertainment.

50/30/20 Rule

A popular budgeting method is the 50/30/20 rule. This approach suggests allocating 50% of after-tax income to needs, 30% to wants, and 20% to savings. For international students, needs might include tuition, rent, and groceries. Wants could cover entertainment and non-essential purchases, while savings can be set aside for emergencies or future goals.

Tracking Expenses

To stick to a budget, regularly tracking expenses is essential. Many apps and tools are available to help students monitor their spending. Some popular options include Mint, YNAB (You Need A Budget), and PocketGuard. These apps can connect to bank accounts, categorize expenses, and provide visual representations of spending habits.

Regular Budget Reviews

Reviewing the budget regularly is key to staying on track. Set aside time each month to assess spending, identify areas where you may have overspent, and make adjustments as necessary. This practice helps adapt to changing circumstances and ensures the budget remains relevant and effective throughout the academic year.

Managing Essential Expenses

Managing essential expenses as an international student in Canada requires careful budgeting and smart decision-making, especially when it comes to major costs like tuition, housing, personal care, food, and transportation. Understanding and planning for these key expenses allows you to make the most of your time in Canada without financial stress.

Tuition and Academic Fees

Studying in Canada can be more affordable than in other English-speaking countries like the US, UK, and Australia. However, tuition fees for international students are still significant. On average, undergraduate international students pay around 29,714 CAD per year. Postgraduate fees are generally lower, averaging 17,744 CAD annually. Costs vary depending on the program, with humanities courses often cheaper than engineering or medicine.

Housing Costs

Accommodation is a major expense for international students in Canada. Options include on-campus housing, private rentals, and homestays. On-campus accommodation typically costs between 3,000 CAD and 7,500 CAD per year. Private shared accommodation can run around 8,400 CAD annually, plus utilities. Rent in cities like Toronto and Vancouver is particularly high. For example, a one-bedroom apartment in Toronto's city center averages 2,444 CAD per month, while it's about 1,878 CAD outside the center. Learn how to find student accommodation in Canada.

Personal Care

To save on personal care expenses, students can take advantage of university health services, which often provide basic medical care at reduced costs. For dental and vision care, getting checkups and necessary treatments in one's home country is advisable before arriving in Canada, as adding these coverages to insurance plans can significantly increase costs.

Food and Groceries

Food expenses can vary based on lifestyle choices. Cooking at home is generally more budget-friendly. Students can expect to spend between 240 CAD to 480 CAD per month on groceries. Many universities offer meal plans for on-campus students, which is convenient. To save money, students can shop at discount grocery stores, buy generic brands, and look for student discounts. Some universities also run affordable food programs to help students manage their expenses.

Transportation

Public transportation is often the most cost-effective option for students. In Toronto, for example, a TTC student pass costs about 128.15 CAD per month, up to 1,537 CAD annually. For those commuting from outside the city center, options like GO Transit, York Region Transit, MiWay, Brampton Transit, and Durham Region Transit offer various fare options. Students should check for post-secondary student discounts, which can lead to significant savings.

In Vancouver, the TransLink system provides comprehensive coverage with monthly passes ranging from 107.30 CAD to 193.80 CAD, depending on the zones traveled. This system includes buses, SkyTrain, and SeaBus, offering flexibility for students living in different areas of the city.

Saving on Lifestyle Costs

While saving can seem like a mission, it is possible to find smart ways to cut down on everyday expenses without sacrificing your quality of life while living as a student in Canada. By being mindful of these lifestyle expenses and seeking out cost-effective alternatives, you can easily manage your budget more effectively while enjoying your time in the land of maple leaves.

Entertainment

Canada offers budget-conscious students numerous free or low-cost entertainment options. The country's 37 national parks and ten national park reserves provide opportunities for hiking and camping, allowing students to enjoy breathtaking landscapes without breaking the bank. Many cities also host seasonal or annual festivals and activities at little to no cost.

For those interested in urban exploration, Canada's cities boast impressive street art, murals, and sculptures, perfect for leisurely walks or bike rides. Cycling is a popular and affordable activity, with many cities offering bike-friendly routes.

Clothing and Shopping

Clothing can be a significant expense, especially when adjusting to Canada's diverse weather conditions. However, students can save by shopping at thrift stores such as Value Village or using online marketplaces like Kijiji and Facebook Marketplace for second-hand items.

Seasonal sales, especially during Black Friday and Boxing Day, offer significant discounts on winter wear, electronics, and other necessities. Many stores also offer student discounts, so always ask if one is available.

Socializing: Meeting New Friends Without Overspending

Building a social life is an important part of the student experience, but it doesn't have to be expensive. Many universities have clubs, societies, and student organizations that host free or low-cost events, giving students a chance to meet new friends and engage in fun activities without the expense of frequent nights out.

Potluck dinners with friends, movie nights at home, or exploring local parks together are great ways to socialize on a budget. Taking advantage of university events, from cultural fairs to sports games, also offers opportunities to meet people without spending a lot of money.

Fitness and Wellness

Staying fit is important for physical and mental health, but gym memberships can be expensive. Fortunately, many universities offer students free or discounted access to on-campus fitness centers. Outdoor activities like jogging, biking, and hiking are also free and allow students to enjoy Canada's natural environment while staying active.

For mental wellness, many Canadian universities provide free counseling services, stress-relief workshops, and mindfulness programs to support students' mental health at no extra cost.

FAQs

How Much Money You Need to Survive as an International Student in Canada

For 2024, single applicants must demonstrate financial support of 20,635 CAD, which is 75% of the Low-Income Cut-off, in addition to your first year of tuition and travel expenses, according to the Government of Canada. This new requirement took effect for Canadian study permit applications received from January 1, 2024.

Does Quebec Have its Own Financial Requirement for International Students?

Yes, Quebec has a separate cost-of-living threshold that international students must meet to study at Quebec educational institutions. This threshold is regularly updated to reflect changes in living expenses in the province.