Quote:
Originally Posted by Weitz
Can you flesh out the $20K a year a bit more for me? Because outside of rent what additional costs are you incorporating that aren’t already being paid at home?
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Depends on where we're talking. Travel back home is a big one. You're coming back in the summer and Christmas at a bare minimum. So if you are driving, you need a car (upfront capital cost, insurance, maintenance, etc.) or if you're further away you're flying.
Food is another big one: at home it's free for most students as the parents are just making extra of whatever they're making for themselves. On your own? You're spending a lot more than if you live with your parents, plus you need dishes, appliances and furniture.
Your family is also doubling up on utilities/Internet. Tenants insurance comes to mind (small, but an additional expense versus just being included on your parents' household insurance).
IDK, average one-bedroom apartment in Calgary right now is $1691, plus utilities. That's $20,292 per year right there (not including utilities). Plus all those other expenses and then multiply that by four years and it's a big chunk of after-tax dollars going toward something that - imo - is just setting a person back. If there is that money in your family, how is it not way better for the long-term financial stability of a person to save that money over the four years and gift them a down payment once they graduate?
Looks like average price for a two-bedroom is $2079, plus utilities. So even with a roommate you're at $12,474/year. Average price (per Google) for utilities for an apartment in Calgary is about $440 (I went right down the middle of highest:lowest to get that number and it does include $75 for internet, but I did subtract out landline and cable TV since no kid would pay for that). That adds $5280/year divided by two people to give you $2640 of expenses above rent.
My numbers don't even factor in travel back home (if they are attending school outside of the city).
IDK, I think my numbers are reasonable.