TORONTO, July 7 /CNW/ - School may be out for the summer, but financial
planning should still be top of mind for students as they start their summer
jobs.
    As their first paycheques start coming in, it's a perfect time for
parents to discuss the importance of saving and planning for their finances.
    "Parents need to be proactive in getting their kids thinking about more
than just the money coming in but what they need that money for and how they
are going to make the most of it," said Winnie Go, Senior Wealth Advisor,
ScotiaMcLeod.
    "By helping kids familiarize themselves with the products and tools out
there to help them save, parents are starting a pattern of financial
responsibility that will hopefully follow students to adulthood."Ms. Go offers some practical tips for students to consider this summer and
in the future:

    -   Make a budget: Separate the discretionary (want) expenses from the
        necessary (need) expenses. Make a list of what your priorities are
        and address them first. For instance, tuition and text books might be
        higher on the list than a new wardrobe.

    -   Pay yourself first: Now that you have a budget, set aside a
        percentage of your summer income right off the top as savings to
        cover your necessary expenses. For example, a student saving for
        university or college tuition should consider saving anywhere from 50
        to 70 per cent from each paycheck.

    -   Pay by cash or debit card: This will ensure that you don't over-spend
        your summer earnings.

    -   Put your allocated expense money into individual envelopes: Whether
        it is for entertainment or clothing, once the money is gone, that's
        it for the month.

    -   Open a separate bank account for your savings: This way you can
        deposit money into an account at your own discretion and you won't be
        tempted to spend it until you're ready to make a major purchase.

    -   Consider opening an investment account: Your local bank offers many
        investment account options for you to invest some of your summer
        income on a monthly basis.

    -   Open a Tax-Free Savings Account (TFSA): Canadians aged 18 and older
        can save up to $5,000 every year in a TFSA. The TFSA allows you to
        set money aside in eligible investments and watch those savings grow
        tax-free.

    -   Access your accounts often: Take advantage of the ability to check
        your accounts online. Use this to keep yourself on track."Students should consider going over their financial priorities and goals
on a regular basis. While their finances may be easy at the moment,
understanding the basics at an earlier stage is important," added Ms. Go.
"Growing your money puts you in a more favourable position when the time comes
to make the larger financial decisions."

    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With close to 69,000 employees, Scotiabank
Group and its affiliates serve approximately 12.8 million customers in some 50
countries around the world. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment banking.
With more than $513 billion in assets (as at April 30, 2009), Scotiabank
trades on the Toronto (BNS) and New York Exchanges (BNS). For more information
please visit www.scotiabank.com.