When faced with all the challenges of optometry school, keeping an eye on your finances may not be top of mind. But how you manage your money today is going to impact your financial future.
Here are some simple ways to ensure you set yourself up for success:
1. Understand your options
With only two schools in Canada offering Doctor of Optometry (OD) degrees – University of Waterloo (English) and Université de Montréal (French) – getting accepted is challenging for even the best students. The answer for many is to study abroad, which can add substantially to the overall costs. So, the most important first step is to understand all your options.
“Even before you apply to optometry school, it’s wise to sit down with an advisor who can answer your questions,” says Ingrid Vanelle, Scotiabank Healthcare & Professional Specialist. They can help you determine how much money you’ll likely require and any special financial considerations. “For example,” says Vanelle, “students wishing to apply for financing to study abroad will need their parents to cosign the loan.”
2. Apply for credit
While government student loans can help cover a portion of the cost of a Canadian university program, chances are you’ll need access to additional funds to cover the full cost of optometry school using a student line of credit. Once approved, it allows you to draw funds as required for your education and, unlike a government student loan, there are less restrictions on how the funds can be spent. Meeting with an advisor who specializes in supporting optometry students can help ensure you get the best possible terms, such as lower fees, a preferred interest rate and other related financial services, such as a credit card.
“Just be sure to always review your monthly statement,” says Sharu Jose, Scotiabank Healthcare & Professional Specialist. “While you have up to two years after graduation before you have to start repaying the debt, interest accrues on credit funds you draw. So, it makes sense to continuously review what you’re spending.”
3. Create a budget
With inflation causing an increase in the price of food, rent and everyday essentials, it’s more important than ever to not overspend on non-essentials. “Creating a budget can enable you to track fixed expenses (such as rent) that you can’t control and variable ones (such as eating out and entertainment) that you can,” says Jose. By providing a clear picture of your finances, it can help you spend more wisely.
While creating a budget may seem like a daunting task, budgeting software, using Scotiabank’s Money Finder Calculator can help. It allows you to track monthly expenses so you can focus on spending on important things such as paying down your debt.
4. Pay attention to your credit score
Something else Jose recommends is to be mindful of your credit score. It’s a number that lenders use to help determine how financially responsible you are and whether or not to approve you for a loan. “If you fall behind on paying your bills, your credit score will drop,” says Jose. “That means you may have a hard time qualifying for credit in the future or end up being charged a higher interest rate.”
Paying your bills on time and maintaining a good credit score when you’re a student can help you if you wish to borrow funds to open an optometry practice in the future. When the time comes to open a clinic, a higher credit score could improve your chances of being approved for the loan. Further, a poor credit score may have an impact on the amount of interest you are charged or even how much you must pay for insurance.
Scotiabank provides an easy way for customers to track their monthly credit score for free with the TransUnion Credit Score tool.
5. Plan for the future
Whatever your financial situation, it’s prudent to seek professional advice to ensure you create a financial plan that will set you up for success in the future. “The sooner you apply for a line of credit the better,” says Vanelle. “It’s important to establish good credit history early. Qualifying for the full credit limit will depend on the overall amount of debt – including a government student loan debt, which is likely to increase over time. This can impact the amount of credit you qualify for.”
Along with helping to finance your education, a Scotiabank Healthcare & Professional Advisor or Specialist can also help you create a plan to reach your goals after graduation. Plus, they can connect you with other professionals who can support your future business needs, such as lawyers and accountants who specialize in the unique needs of optometrists.
For more information on financing optometry school and customized advice and support to help you plan your financial future, contact us today.