Question

Help John make good decisions based on the information and questions below.

John is leaving his rural home to go to college. Along with an allowance from Mom and Dad, he gets a Canadian Student Loan for $13000 for one year. John lands on campus, and is immediately led to the Campus Activity Centre for Campus Orientation. He is introduced to campus social life, which involves girls, alcohol and unfortunately an introduction to a rich kid, who does not care about money.
From the $13,000, John pays course fees, activity fees, books and accommodation. Money set aside for clothing and food are spent on partying. By early November, John is eating two slices of bread with porridge. His class efforts dropped, social life is bankrupt and rich kid has moved on. Mom and Dad's support, a small amount only serves to remind him how bad off he is. Once a month he lives like the rich boy for a couple of days.

What were the red flags (meaning dangers) that indicated that John could not manage a $13,000 Student Loan?

What would you suggest that would have helped John manage better?

Answer 1

Setting a bank account that limit the amount he can spend outside of school , and maybe alternatives and easier ways for school for example instead of buying books he could invest in a laptop or iPad and he can get a digital copy of the book or ask the teach to send him a pdf.