VisionBlog Series: Financing your Undergraduate Journey

When applying for business programs, one aspect that is often overlooked is how costly it is to attend a business school. Moreover, there are many hidden costs that are not factored such as housing expenses, textbooks, and food. This blog post will focus on the perspectives of 3 individuals and how they went about paying for these expenses. We are excited to introduce the perspectives of:

1)    Meena - a current undergraduate student studying in the Commerce program at Queen’s University

2)   Darren - a graduate from Wilfrid Laurier University’s BBA program

3)   Sue - a parent of a student who has a child in a business program in Ontario

Key Takeaways

• University tuition costs are costly but there are resources available to you to help as both a student and parent such as:

  a)    OSAP

  b)    Public Ontario scholarship portals as well as university-specific scholarship databases

  c)    Starting an RESP for your children

  d)    Working a summer internship/co-op or as part of a campus part-time job

• Seek advice early on

  a)    Talk to your trusted advisors and teachers about scholarship awards or financial aid

  b)    Understand the costs (both fixed and variable) that you might need to pay once university begins

• Budget, budget, budget

  a)    There are two costs you will need to pay: fixed (i.e. rent and tuition) and variable (i.e. food). It is important to understand what is within your control so that you have enough funds to help support your fixed costs

  b)    Consider creating a spreadsheet that tracks your forecasted income and costs. Oftentimes, you might not be able to control your income, but you can definitely control your expenses.

Meena (current undergraduate student)

1. In high school, what was your initial reaction when you first learned about first-year university tuition costs?

Initial reaction: shocked that the Commerce program that I was accepted in had a tuition of almost over $17,000.

Some thoughts/feelings that floated in my mind: Could I afford to attend my program of choice, even with OSAP? After factoring the cost of living and other school-related expenses (residence, meals, textbooks, etc), do I need to narrow down my program choices to local programs to save on living costs?

2. In high school, how much did you know about financing process when going through the process of funding your undergraduate education/living expenses?

I recall receiving information about OSAP and scholarships early in grade 12, but that felt late to me. It would have been so much more helpful to have learned about how to qualify for certain scholarships or how to check my eligibility for OSAP earlier in my high school career. Being equipped with financial knowledge in advance can help students plan in advance so that cost isn't a major barrier for their post-secondary career. I did most of my research on scholarships, bursaries, and OSAP on my own or by learning from friends who were already in university.

3. If you had to go through getting a reference letter for an award or scholarship, how did you decide on which person to get the reference from?

I picked adults who knew me and the work I do really well. There's a common misconception that a reference has to have a fancy title or be well connected, but this isn't often the case. My references were people I had worked with or under in a close capacity on issues important to me, such as mental health awareness and equity and inclusion. They could vouch for my dedication and work ethic with distinct evidence and personal anecdotes. I also try to make my reference's job easier by providing everything they may need. For example, when I ask someone to be my reference, I often send them a document with an outline of what the award/scholarship is looking for in a candidate and a list of the ways I meet these criteria. This helps my references focus on what to say about me and also makes their writing process more efficient.

4. Tell us about your process (successes and failures) to funding your university tuition and related expenses. Please elaborate on the resources you had, how you researched what to apply for, and the end result.

• I started seriously researching university costs in my grade 11 year. I knew I would need financial aid to pursue post-secondary, and I didn't want to rely solely on OSAP because I was aware that the Ontario provincial government had plans to cut post-secondary financial aid. In the summer before grade 12, I researched scholarships I could apply for and noted their deadlines in my calendar. I also made an inventory of all the extracurricular and leadership experiences I had. I used that summer before grade 12 to gear myself up for writing applications -- I researched what a good award application looks like by reading books and watching YouTube videos on the subject.

• During grade 12, whenever a scholarship deadline approached, I would write my application, ask a trusted guidance counsellor or friend to give it a read, and submit the application hoping for the best. I received a second-round interview for the Loran Scholarship, one of the most competitive scholarships I applied for, and eventually ended up winning the scholarship.

• The Loran scholarship finances most of my school fees and I pay the rest of my university costs through savings from part time jobs. During first-year, I used savings from my part-time job in high school to help cover the costs of my remaining tuition and textbook fees. This year, I work as a facilitator for the Sexual Violence and Bystander Awareness training program at Queen's and I also work as a research assistant exploring equity initiatives and diversity in business schools.

• During my first-year, some extracurricular opportunities I wanted to participate in were too expensive for me. To fund some of the conferences I really wanted to attend, I applied for bursaries and also reached out to the organizers of the conferences to see if my participation costs could be subsidized. I had to think very carefully about which conferences I could afford to attend. Financial costs aside, I also had to factor in the time costs of applying to bursaries and figuring out financial accommodations of participating in certain events.

• Overall, I did my best to never limit myself because of cost, but I had to put in a lot of time to make it work. Most people don't think about the time costs associated with being a lower-income student in post-secondary -- filling out numerous applications for bursaries, trying to save on textbooks by searching for second-hand options, etc. all add up when you're also a student who's balancing a hectic schedule.

5. What advice would you give your high school self and current high school students who are going through the financing process?

• I would say get informed as early as you can. Figure out the programs you're interested in and the costs associated with those programs. Then be honest and map out how much money you have and how much money you will need for each of the programs you're interested in. Once you've figured out how much money you need, look into your bursary estimates on the financial aid websites of universities, look into scholarships you qualify for and start applying to them, ask trusted teachers and guidance counselors about awards you may qualify for, etc. The sooner you're honest about your financial situation, the sooner you can find resources to help yourself.

• For scholarships, I recommend checking out this book: Ontario Scholarships - 2020 Edition (it lists private and university-based scholarships available to those from or studying in Ontario. There are also tons of scholarships that don't require you to be an Ontario citizen, so definitely check it out even if you're not from Ontario). For contests, awards, scholarships, and other opportunities, check out this amazing website called Youth of Canada. It's a great place to start your search and some of the awards listed even offer monetary prizes you can use towards funding your tuition. These are two great resources to start your search. Be sure to also check the financial aid pages of your target universities to see what scholarships and bursaries they offer

Darren (graduated)

Darren graduated from the BBA program at Wilfrid Laurier University. He currently runs the marketing department of a US-based beauty company and, as a small team, juggles across different roles.

1. In high school, what was your initial reaction when you first learned about first-year university tuition costs?

I was a pretty frugal kid growing up so when I saw the combined costs for tuition, residency, and especially the meal plan, it was shocking to me. My first reaction was to look harder at scholarships and bursaries and find more opportunities to earn money. I think I was still pretty confident I'd find a way to manage costs and not be burdened by student debt.

2. Tell us about your process of helping to fund your university education while you were there?

Looking back, I was kind of all over the place to fund my education. Thankfully I had a bit of money from working in high school and student loans covered the rest. I also took a job at a startup in the first summer while trying to launch a business with a friend after work. The business failed, but I tried my hand at multiple ventures throughout undergrad and I was also in a co-op program which greatly helped pay for tuition, rent, and living expenses. I learned a bit of web development as well as videography and ended up taking on contract jobs as well here and there. Student loans helped to cover the rest. It's important to also keep applying for scholarships as well as bursaries. I ended up deferring my last school term to extend my final co-op which helped me save enough money to fully pay off my student loans by the time I graduated.

3. What advice would you give your high school self and current high school students who are going through the financing process?

There are kind of two costs you have to pay. Fixed costs such as your tuition, maybe your first-year dormitory, and meal plan. Everything else is quite variable. I recommend looking into optimizing your costs in food, entertainment, rent, and school supplies. I strongly recommend creating a budgeting sheet just to track where and what you're spending. Oftentimes, you might not be able to control your income, but you can definitely control your expenses.

Sue (parent of a student in a business program)

1. How many children do you have and can you share the approximate amount of tuition that they needed to pay?

2 children:

• Child 1 - $10,000 per year (excluding living costs, lived at home)
• Child 2 - $20,000 per year (excluding living costs)

2. What was your initial reaction when you first heard of university tuition?

I started saving up for my children’s education ever since they were young (around toddler age). With each pay cheque I received as a working mother, I contributed a small amount of funds to their Registered Education Savings Plan (RESP). Over time, they amount grew until they reached the age of 18 when they can start accessing the funds for school. I understood how expensive post-secondary schooling was in Canada when I first immigrated here and I my reaction was that I wanted to save up a decent amount of funds so that my children will be ready for it when the time comes.

While the funds were enough for Child 1, the tuition for Child 2 who went to a business school was more expensive than I anticipated. We had to rely on scholarships, OSAP grants and loans to help out.

Moreover, there is a large difference between having child stay at home vs live on campus:

• Child 1 - it was great that they stayed home as they saved costs on rent, food, etc
• Child 2 - had to think about rent, food, are they taking care of themselves etc.

3. What steps did you take early on in order to help your children finance their education?

A) Started RESP for child - started saving for each child ever since they were born up until they were 18

B) Saved the government child care benefit - every child born in Canada receive an annual amount for lower income families. Once we earned more money, we were no longer entitled

C) Had a financial planner which shared information on RESP - each year, the government will match your contribution by 20%, up to a maximum of $500 for each child. You need to contribute $2,500 a year to get the full grant of $500 each year.

4. What kind of values/habits did you instil to help them? Did it work?

My husband and I grew up in poor conditions back in our home country. As such, our frugalness was a habit we passed down to our children. Purchases were made only if required.

We also understood the power of saving early (i.e. long term gratification > short term gratification). Early on (around elementary school), we started a bank account for our children that they had access to:

• Any birthday money or gifts, taught them to deposit it in a bank right away
• Helped them to build a credit score by helping them apply for their first credit card

We made sure each child understood the value of money - allowances were seldom:

• This forced them to save money to purchase their own toys, etc
• They were encouraged to perform house chores
• “Earn what you have” rather than being gifted

We instilled strong values - the value of education:

• In some cases, in lieu of an allowance, reward them with something they’ve wanted if they accomplished something big such as getting good grades or making a good impact in their wider school community

We helped them become financially independent:

• Made them understand now that money is limited; they are both now in full time careers and are spending money smartly, and do not depend on parents anymore financially
• Small examples is that they prefer to eat at home to save money and in their mid-20s are now able to afford to buy their own homes
• They both have become educated investments and have built up this. At an early age, I introduced them to investing in TFSA the moment they started earning money

5. What advice do you have to working parents who are hoping to help their children (either through financial support or through moral support) with their future undergraduate expenses?

Start saving as early as possible, look into the following:

• RESP
• CCB

Instil values to them:

• Value of money
• Start a bank account early and teach them how to save early

Empower them:

• Help them look and apply for scholarships
• Encourage them to participate in extracurricular after school especially of both parents are working; personally had a family friend take care of them after school in order to ensure they were completing homework, got the help they needed, and studied diligently

Lastly: it’s not just about helping to fund for university - kids must want to go to university too. You need to teach them the value of education. Encourage them frequently by asking them what they want to do in the future periodically throughout high school:

• Once you understand, help them research into the path and perhaps introduce them to family/friends who are in the field they work in
• Bring your kids to work day - this is important! This helped to shape a lot of what my nieces/nephews and one of my children wanted to do in the future

Wrap Up

We would like to thank our interviewees for their responses and time. Through this blog, we hope that we were able to shed some light on different ways to finance your university business education.

We’re also actively hiring! If you have any questions, please reach out to our team using our “Contact Us” form. Until next time!

Happy summer, 

&Vision Team