My Finances

First posted: October 12, 2009

More and more people are leaving their towns and cities to study elsewhere. It is important to think through the financial aspects of this decision very carefully. For example, for 2009-2010, Université de Montréal estimates the cost for a graduate student in Québec to attend school for one year to be $12,000. This can be broken down into moving costs of $1,500; living expenses at $1,045 per month; and tuition fees of approximately $984 per semester. To that can be added the cost of textbooks and school supplies.

This week, our financial planner, Denis Bellemare, looks at this question, focussing on a young couple from Québec City, both 27 years old. Nicolas has decided to head to Montréal to pursue graduate studies, and Catherine is going with him and will look for a new job, even if she may be returning to Québec City later. On top of that, while they're gone, she's looking to rent out the condo she owns and is leaving behind.

As he analyses the situation, Mr. Bellemare addresses the couple's general financial situation and, more specifically, their desire to know more about:

• The financial consequences of moving.
• The tax impact of Catherine's condo rental.
• The importance for Nicolas to take advantage of the LLP (Lifelong Learning Plan) to finance his studies.

What plans have you made to deal with this type of situation?