// BORROWING MONEY

Even with all your efforts to make money and keep expenses in check, you may find that you need to borrow to get through school. That's okay. In fact, about half of all Canadian post-secondary students do.

It's smart to use credit to get something essential that you can afford over the long term, like a car. This is especially true if that "something" is an asset that holds value (like a home) or will increase your earning potential (like post-secondary education).

The key to being a successful borrower is to know how to use credit responsibly and wisely. To do this, you first need to understand how credit works and what your options are. Here are some pointers: borrow only what you can afford to pay back; track your debt; and make repayments on time (if you aren't sure when you'll be charged interest, check back to the documents you received from your credit provider).

All this helps you accumulate a solid credit history and credit rating — a record of your ability to repay debt based on your previous actions. And a strong credit rating is essential if you need more credit in the future, because it can be the deciding factor as to whether or not a lender approves your application.

By developing good credit habits now, you'll be better prepared for life beyond graduation — and have a credit rating to prove it.