Families with children attending university or college could use some help from advisors as they adjust to the reality of a new school year.

The majority of Canadian university and college students (81%) agree it’s important to have a budget to manage finances during the school year, but 6 out of 10 did not prepare one before heading off to school, according to a new survey released Thursday by Bank of Montreal (TSX:BMO).

The key findings, which was conducted by Leger Marketing, in September, include:

> 40% of students are concerned they will not have enough money to cover the remainder of the school year;
> 63% of those concerned plan to cut spending, while only 1 in 3 said they would start a budget; and
> The majority of those with a budget say they have needed to make revisions since school started.

“During the Thanksgiving long weekend, many students will be home for the first time since the school year started, and it will be a good opportunity for students and their parents to review their finances together,” says Su McVey, vice president, BMO Bank of Montreal. “While the report clearly underscores the need for financial guidance, it’s not too late for students to get things back on track.”

McVey recommends students start applying straightforward steps and tools to help improve their spending and savings habits. McVey points to BMO SmartSteps for Students, a program designed to provide useful ideas to help students stay on top of their money, as well as other online tools, such as the Student Budget Calculator.

“Students and parents can also work with a financial advisor to seek out the proper tools and services that can help save cash wherever possible,” adds McVey. “For example, developing and monitoring a realistic budget, minimizing banking fees by opening a no-fee student account and taking advantage of student discounts with a SPC card can make a big difference in curbing expenses on a monthly basis.”

IE