C/O Heidi Fin, Unsplash
Save a little more and spend a little less, your OSAP savings will thank you
Just hear those sale signs jingling, ring ting tingling too. Come on, it’s lovely weather for a day out shopping with you! The holidays are just around the corner, clearly indicated by the new red and green Starbucks cups, ridiculously gigantic Christmas trees in store-fronts and most important of all, the “door-crashing” sales in shopping malls.
Black Friday, Cyber Monday and Boxing Day, though surprising how they came to be when you think about it, effectively offer North America with excuses to splurge on clothing, toys and other items that they “might use.”
It’s interesting because, throughout the year, it is easy to witness many folks treading carefully with regards to their spending habits but the holiday season will have you whole-heartedly believing that emptying out your savings account is the best way to go.
You can’t really blame the general public though, can you? I mean, corporations do quite a good job of reeling in the customers. How are we expected to walk away from Caramel Brulée lattes, red flannel pyjamas and Winter Candy Apple candles?
For most of the developed world, these select holiday items are the prime marker for enjoying the holiday season. It’s just not Christmas without going on a shopping spree for yourself and the people that made it onto your gift list.
Multinational corporations exploit the vulnerability of consumers at this time and have spectacularly transformed the ability to cause confusion between necessity and desire into a fine art. This often causes individuals to get lost in the excitement of it all and forget to pay any mind to the negative effects consumerism can entail.
Before we get into that though, what exactly is consumerism?
If you haven’t guessed it already, consumerism is essentially the purchasing of market goods and resources. More importantly, it’s a technique used by capitalist societies where suppliers are ever-producing to meet the demands of the general public, or the consumers.
It is much more prevalent in Western societies where there is often codependency between our personal identities and the items that we purchase.
In fact, according to economists, the driving force behind the steady increase of consumerism is the phenomenon of Americanization, otherwise known as the ‘manipulation of preferences’. It is important to note, however, that the market seldom invents new desires — they simply give existing desires a new form to make them more appealing.
This phenomenon effectively feeds into consumerism and creates an extreme version of itself: hyperconsumerism.
A variety of different factors, including the holiday season, can help normalize the dangers of consuming beyond what we need while ignoring the mental, physical and environmental effects. For large corporations, hyperconsumerism comes at the cost of violating workers’ rights since these capitalist markets often treat human rights infractions as collateral damage.
It also goes without saying that, as the demands for consumer products increase, so does the need to produce more and this inevitably leads to an increase in pollutant emissions, exploitation of natural resources and accelerated climate change.
Did you know that the wealthiest 10 per cent are responsible for consuming 59 per cent of the world’s resources? Ironically, they are not the ones experiencing the effects of climate change; it’s the bottom half of the population that is affected.
Now, I can’t possibly advise you to ditch the shopping malls and ignore Black Friday Sales altogether. Most individuals will invest time in figuring out a solution that allows them to continue consuming at the same rate while dodging the effects that hyperconsumerism has.
Ethical consumerism calls upon the consumer to critically analyze their favourite brands and products before making a purchase. However, it’s no secret that purchasing from ethical brands can be expensive and is not a solution that’s accessible to everyone.
Before making a purchase, consider its versatility, quality and whether it will stick with you in the long run. Limit impulsive SHEIN haul orders to conform with trends and instead look for basic clothing items that offer more flexibility.
If you want wide-legged jeans, go for it — just make sure they’ll last and you don’t relieve the store of its entire denim section. I want them too.
By: Daanish Kachalia
Warren Buffet is the third richest person in the world, yet he never spends more than $3.17 on breakfast, drives a $35,000 car and lives in a house priced lower than the average Toronto home.
With debt at an all-time high within millennials, many students need to manage their money more effectively. According to a Northwestern Mutual 2018 Planning and Progress study, millennials hold an average debt of $36,000. According to the same study, paying debt off is not listed as a top priority for millennials. When it comes to managing your money as a student, saving it is essential.
One may question, why can’t debts be paid off later? The simple answer to that is to secure an earlier financially-stable future. The most obvious factor to consider is interest rates, as they can add up to hundreds of thousands of dollars over time and can be detrimental to a debt-free future.
There would undoubtedly be times when you cannot refrain from spending, like eating out with friends, partying or buying school supplies, but there are ways where your savings can be optimized by some simple tips that you can apply starting today. These tips, which are by no means exhaustive, are created by a student, with students in mind!
If you are living away from home, buying groceries or personal hygiene items can be quite expensive. It is important to note items that are on sale and to buy them in large quantities, especially if it is a necessity. For example, if toilet paper is on sale for $1.50 off, buying the supply for the rest of the school year will result in an immediate return on your money.
Making your money sit in a chequing account is possibly the worst action one can take as it is essentially not growing. Instead, your Registered Education Savings Plans, grants and savings should be placed in a high-interest savings account. By doing this, your money will accumulate over time via interest and you will make riskless return that you would not make otherwise.
Partying is one of those activities where you don’t mind spending money after a stressful week. Although there are certain costs you cannot avoid, there are also many where you can immediately save. Taking the bus being one of them. Why take an Uber or taxi when you can get around the city for free or significantly less? Of course, it would not be as comfortable or efficient, but as students just trying to get by, this method is substantial for a healthy bank account.
This tip may be the most obvious of the bunch, yet many students somehow spend hundreds of dollars throughout the school year on food which is very much an avoidable expense. The best solution would be to meal prep. If you know that you will have a busy schedule in the coming weeks, you should prepare your food ahead of time so you have it available when needed.
Sometimes, many of us unconsciously spend without even realizing it. Knowing where your money goes and taking corrective action can potentially result in a surplus of money by the end of the school year. Today, almost every retail bank offers free analytics on your spending through online and mobile apps. These analytics offer insights such as the months you spend the most on, categories you spend on and spending behaviours. With tracking your expenses, you can possibly realize your unnecessary costs and take the corrective action to reduce spending.
There is no doubt that saving your money effectively can result in less debts and a more financially stable future. When it comes to managing your money as a student, saving it is the key ingredient. Warren Buffet should serve a role model for us all, as he has a net worth of $84 billion USD yet lives a more conservative lifestyle than most of us do as students.
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