Identify your needs, wants and values to ensure that you are accurately reflecting them in your goal setting.  

Here are some questions to ask yourself to better understand your money habits and how they contribute to your financial wellness: 

• “I enjoy spending money on this because…”
• “I dislike spending money on this because…” 

Then, you can start aligning your purchasing decisions based on what you value — and how much you value each purchase. 

Identify your current financial situation 

Determine your current financial status by reviewing your current income, expenses, savings and debt (including the interest rate) to understand your starting point and what is feasible.

Setting your goals 

All financial goals are usually about opportunity cost and the trade-offs that come when making this decision.  

For example: “Saving $50 a month might mean I have to reduce my discretionary spending.” This means that evaluating your current spending and determining where you can potentially reduce or reallocate your money is essential for meeting these goals. 

Make sure to determine your time horizon and risk tolerance: 

• Time horizon is the length of time you expect to hold an investment before needing to use the money.
• Risk tolerance is your ability and willingness to accept changes in the value and possibility of loss. 

Simply, this means that a short-term time horizon will likely mean taking less risky investments or strategies, while longer time horizons will allow for more consistent investment and risk associated with your goals.

Being SMART with your money 

As with any type of goal setting, it’s important to think about what’s specific, measurable, achievable, realistic and time-bound (SMART). 

Setting SMART goals, using tools such as the Prosper Canada SMART Goals Planner, can help support your ability to action and understand challenges which may impact your ability to meet these goals.  

How we can help 

If you are interested in meeting your financial goals for the upcoming year, consider reaching out to money@mcmaster.ca. We can support the planning and strategy so you can meet your goals for 2026! 

Resources and tools 

• Prosper Canada Learning Guide: Your Money Goals
• Prosper Canada Learning Guide: Setting Savings Goals
• Prosper Canada Learning Guide: Setting SMART Financial Goals
• Risk Tolerance Assessment

Will I be able to make the payments?

It is almost always better to purchase upfront. With installment payments, you need to ensure that you stay on top of these purchases as the interest rate is extremely high.

Is this product an immediate need?

As everyone’s needs differ, some things may be more important to you than others. However, if purchasing using these services, it is essential to not be pulled into purchasing “wants” or “nice-to-have” items. These apps make spending easy, but you need to be sure that something’s a necessity before fast-tracking the purchase.

Know your budget

These apps make it easy to “balance” your budget in a month, but may cause excessive stress further down the line. Understand your budget and whether these payments in later months will cause significant stress or limitations.

Read the contract

Review the repayment schedule, fees and potential penalties for late payments. Does it make sense for you and your personal risk tolerance to take this risk?

Final thoughts

BNPL services can be convenient, but they also have significant risks. According to Lending Tree, 41% of BNPL users paid late within the previous year. These apps and services often lead to debt if not used cautiously. 

At Mac’s Money Centre, we want to ensure you have all the information needed to make financial decisions, including whether or not to use BNPL services with the associated risks.  

Have questions about budgeting, credit and other important financial topics? Email us at money@mcmaster.ca for support. 

Read more: Buy now, pay later plans

Payment history: Approximately 35%

• The most important part of building a great credit report is paying on time.
• Late payments that are over a month late will decrease your credit score.

Credit utilization rate: Approximately 30%

• Credit utilization ratio is the percentage of a borrower’s total credit currently being used.
• To ensure the best credit score, your credit utilization ratio should be between 20% and 40%. This means that, if you have a $2,000 credit limit, then you should aim to use between $400 and $800 in credit.

Credit history: 15%

Credit history is how long you have been using credit. It considers the average age of your current account.

Types of credit: 10%

Differentiated lines of credit can help improve your credit score, as this demonstrates responsibility.

Credit inquiries: 10%

• Credit inquiries are when a bank or lender checks your current credit score. If there are many “hard inquiries” that have occurred recently, it may show that the person is requesting multiple loans or may have an inability to financially support the amount given.
• This will not impact you if you are searching for the same type of loan at different financial institutions, so if you were to compare car loans at multiple places, it would not negatively impact your credit score.

General tips to stay on track

• Pay your bills on time — on or before the due date.
• Borrow only what you need and what you can afford.
• Contact creditors immediately to make alternate arrangements if your payments are late.
• Credit cards are a convenience. There are there to help when cash is not available — they are not your emergency fund.
• Review potential credit card offers and determine which align best with your current needs. Ensure proper research through the credit card comparison tool (Financial Consumer Agency of Canada) and Rate Hub.
• Cut up cards you are no longer using and cancel the accounts at your request.
• Get help if you’re in debt and can’t handle the payments. Make an appointment with Mac‘s Money Centre by emailing money@mcmaster.ca.
• Check your credit reports annually for errors or omissions. Report any inaccuracies and supply written proof to both credit bureaus: Trans Union and Equifax.
• Bank credit cards (Mastercard, Visa) have lower interest rates than retail cards.
• Understand where you may have the potential for impulse shopping. Create lists and use cash if  you’re concerned about potential overspending.
• Pay credit card debt in full by the due date to avoid interest charges.
• Be aware of penalties, charges and interest rates. Understand your card’s terms and conditions.

Ask yourself, what do you need out of your banking? Here are some considerations to keep in mind. 

• Monthly fees: Does the account have a monthly fee? If so, is it based around a minimum balance? For example, the TD Unlimited Chequing Account fee is waived if you have a minimum balance of $4,000.
• Free transactions and e-transfer fees: Are there any limits per month?
• ATM fees and locations: Try to find a bank with nearby ATMs. Still, find out how much you would be charged to use an ATM from a different provider.
• Overdraft protection: This service is provided to prevent declined transactions. This is a last resort and should be used appropriately if you feel it is necessary. There are fees and interest included.
• Interest rate: Will your banking provider be giving interest on the amount within your account? What ranges for your balance are set for different interest rates?
• Personal needs: Do you expect to use cash? How accessible will your funds be? Will you need overdraft protection at some point?

Different types of accounts

• Chequing accounts: Best for daily banking. They have low or no fees, but little to no interest. Read more: Chequing Account Comparison
• Savings accounts: A savings account is best for setting aside funds that do not need to be accessible at the moment. They offer higher interest rates than chequing accounts. There are potential limits to transactions or transfer limits. Read more: Savings Account Comparison
• High-interest savings account: These have higher interest rates, but access to your limited access and withdrawal restrictions. Read more: High-Interest Savings Account Comparison

Shop around

Use Rate Hub to determine the right account for you and review the following articles for the pros and cons for student accounts in Canada — Nerd Wallet: Student Bank Account Review and Loans Canada: Student Bank Accounts.

Note: Welcome bonuses and gifts for opening an account should be your last consideration. Only consider these if you have multiple accounts that meet your needs and are similar in their product offerings.

Email money@mcmaster.ca for an appointment to review your banking options and what you need for your banking. We are here to help and support you!

As with any information shared on social media, when it comes to finfluencers, it’s important to think critically about the content and research the source the information is coming from.

Here are a few tips to check if a finfluencer is trustworthy.

Check their credentials:

• Do they have relevant education?
• Have they been certified? Examples: Chartered Professional Accountant, Chartered Financial Advisor (CFA), Certified Financial Planner (CFP). Find them on LinkedIn to confirm. You can also use this online check credentials tool.
• Do they have relevant professional experience?

Understand their underlying motivations:

• Is this finfluencer sponsored? Does it seem like they continuously bring up a product or company?
• Are they selling a course, or do they have a link that helps them make money off their followers?
• If they have sponsored content, do they clearly label it and not focus on financial advice during these videos?

Focus on the concepts and how they present the facts:

• Do they explain why what they are saying works?
• Do they focus on context over results?
• Do they acknowledge trade-offs or different perspectives?
• Do they encourage critical thinking on what they are discussing?
• Do they focus on long-term goals and planning over short-term gain?

Finfluencer red flags

“You can double your money in a short time-period.”

Why it’s a red flag: Promises of fast, high returns are either scams or require extreme risk. Examples may include options trading, crypto or “pump and dump” schemes (use of false or misleading information to drive stock prices up for quick profit).

“I did this, and it worked. You should, too!”

Why it’s a red flag: Personal experience should not always be the focus for widely disseminated advice. This advice often does not consider your personal factors.

“Everyone should buy this stock/ETF/crypto.”

Why it’s a red flag: Investment recommendations, especially without diversification, can lead to significant losses and emotional strain.

“Sign up for my course to learn why I succeed.”

Why it’s a red flag: If an influencer is trying to get you to purchase something without any details using a sales pitch, they are trying to get you to buy into the mystery and potential. Do not fall for this, as there are many credentialed courses available elsewhere which will provide more value.

“The banks don’t want you to do this.”

Why it’s a red flag: Putting distrust into institutions without offering regulated alternatives often leads to extremely risky or fraudulent financial options being put forward.

Final thoughts

Digital literacy is important to understand financial literacy. As finance has become demystified, finfluencers can be inspiring, but they are not always reliable. Use them to start the conversation but not as an absolute truth. When in doubt, get a second opinion from a Chartered Financial Advisor (CFA), Certified Financial Planner (CFP) or another trusted advisor.

Not sure where to start or need support? Mac’s Money Centre is here to support your financial literacy needs. Email money@mcmaster.ca to get started.

How can financial literacy benefit you? For one, it can help empower and equip you with the tools to make the best financial decisions for you.

Here’s how Rob and Roma addressed three pressing financial topics:

Managing financial pressure

Rob and Roma start by acknowledging that the costs associated with getting a university education have gone up quite a bit in recent years. Many of the questions they received from students were around how to set yourself up financially by investing and saving. However, with financial pressure at an all-time high, Rob’s number one piece of advice for students is to avoid accumulating more debt.

There will be time to invest once you’ve graduated and have started earning an income, but it is best to “contain your debt to your student loans, if you have student loans. If you’re able to save a little bit, I think that’s great,” says Rob. If possible, he suggests keeping an emergency fund in a high interest savings account. This is a risk-free place to park your savings and earn between 2 to 3% interest, so you have a cushion for when you need a new laptop or you get an expensive dental bill.

Investing as a student

Rob shares that it’s best to invest with money you won’t need in the next few years. This means that if you have not accumulated any debt, and you have money left over after you’ve paid for the essentials and contributed to an emergency fund, you could invest that cash. “In order to have almost a guaranteed great outcome from stock market investing, you have to have a 10-year horizon. Less than that, you’ve got to think about saving and keeping your money safe,” says Rob.

As a student, Rob advises avoiding paying extra fees associated with banking and investing alike. Nowadays, there are lots of options available to you. So, do your research, and make sure you are making an informed decision when choosing who to trade with.

Lastly, it’s also okay to start small when it comes to investing, even as little as $10 will help you get started.

Job searching as a new graduate

“How many of you guys are getting close to graduating?” Roma asks. About half the room raises their hand.

Roma shares that on Stress Test, they talk about how to build and start careers. This includes what to negotiate when it comes to job offers. “One of the best things you can do is negotiate things that are feasible,” says Roma.

Salary can be negotiated, but “benefits can be worth thousands of dollars,” says Rob. Things like dental work, medical care, mental health support, physiotherapy and massage can cost hundreds, sometimes thousands of dollars, and having benefits can save you from paying out of pocket.   

One student in the audience shares that they currently have two job offers on the table: one offers a lower salary with a better projected career growth, and the other offers a higher salary and better benefits, but less projected career growth.

Roma asks, “which one are you more excited about?”

If you find yourself in this scenario, especially in this financial climate, Rob suggests asking yourself some important questions. For example, is this the career you want? The answer can help determine whether career growth is a worthwhile focus when evaluating offers. Additionally, consider whether you have debts to pay off. If so, a higher salary can help you lower that debt at a faster rate.

To learn more about these topics from Rob and Roma, visit The Globe and Mail’s website and subscribe to the Stress Test podcast.

1. Develop smart saving and spending habits now.
   • Your future self will thank you!
2. Spend less than your income. 
   • Make a budget plan and set aside emergency funds for surprise expenses.
3. Watch what you “swipe.”
   • Non-cash transactions make it easy to spend, spend, spend — without realizing how much money you’re using.
4. Use apps and software to keep track of your spending and savings.
   • Mint and YNAB are popular ones.
5. Be frugal. 
   • Minimize expenses and make the most of student discounts and sales.
6. Use your OSAP for school-related expenses only.
   • Remember, it’s a loan, so you’ll need to pay it back.
7. Search for scholarships and bursaries that can add money to your budget.
8. Credit cards can be helpful if you use them wisely. 
   • Learn how to develop a great credit rating and what not to do.
9. Get financially savvy and develop life-saving money strategies.
10. Monitor your financial habits to better understand your relationship with money.

• If you’re a full-time international student, check with the International and Exchange Student Experience team to find out the number of hours you can work.
• You must have a work permit for internships and co-op programs.
• When you start employment, you will fill out a tax deduction form (TD1) for the federal and provincial governments. This form determines the estimated personal income tax deductions from your pay.
• At the end of the year, your employer will issue you a statement of earnings known as a T4. This will show your total earnings and deductions for the year.

Filing taxes in Canada

• The Canada Revenue Agency (CRA) is responsible for the administration of income tax, benefits and programs.
• For tax purposes, full-time international students are considered residents from the time they enter Canada. Please note that this is not the same as immigration status.
• By filing taxes, you can be eligible for free benefits that can be used to help with expenses. Most students will not owe taxes to the government.
• In the first year of filing taxes in Canada, you will need to apply for these benefits. The RC151 form from the CRA must be submitted (or the RC66 form for those with dependants).
• You don’t need to have earned income to file taxes and receive benefits, which means that everyone should file.
• The filing deadline is April 30 for the proceeding calendar year to get your benefits on time. However, you can file your taxes at any time if you don’t owe any taxes.
• Your tuition can also be claimed as a tuition credit. That means if you stay and work in Canada, your tuition credit can be used to reduce future taxes. The tuition credit may be a good reason to stay and work in Canada for a few years to get a return on your education.

Need support with your taxes? We can help!

McMaster offers free tax clinics to all McMaster students, including international students. Keep an eye out for free clinics in March and April every year. 

• Consider more than one bank, including virtual banking options. Banks are like stores, selling products and services. Shop and compare interest rates, banking rates and credit card options. Ratehub is a great resource
• Consider using more than one bank account: one to track your expenses and another for savings. 
• You need two pieces of government ID to open an account. A social insurance number (SIN) is required for a savings account.
• Withdraw money at ATMs owned by your specific bank to avoid paying extra transfer fees.
• Be scam smart — never share your banking information or SIN over the internet or with anyone you don’t know.
• Use pre-authorized payments and automatic transfers between accounts to help you effectively manage your finances

How credit works in Canada

• A credit rating represents your financial reputation (i.e., paying off credit on time leads to a better credit rating). As a new resident of Canada, you can start building a strong credit rating report right away.
• Using a credit card is a great way to build a strong credit rating. Learn more and compare different types of cards and the interest charges.
• Use credit responsibly to avoid hurting your credit report. Credit cards are really loans and need to be paid back.
• Credit reports can be requested by service providers such as landlords, insurance companies, lenders and employers in some cases.