5 Money Myths University Students Believe

Starting university is an exciting time filled with new classes, new friends, and a whole new level of independence. It’s also a time when you’re bombarded with advice—especially about money. The financial world can be confusing, and it’s hard to know what’s true and what’s just… a myth.

Getting the facts straight is the first step toward building a solid financial future. So, let’s bust five of the most common money myths that students hear, and uncover the truth that can save you stress and money.

Myth #1: “All student bank accounts are basically the same.”

The Myth: A bank is a bank, right? As long as it has a student account with no fees, they’re all created equal.

The Truth: This is one of the biggest misconceptions out there. The structure of your financial institution matters. Many large banks are for-profit corporations, owned by shareholders. Their primary objective is to make money for those investors.

A credit union, like Northern Birch, is different. We’re a financial co-operative. That means we’re owned by our members—people just like you. We don’t have shareholders. Instead, our profits are returned to our members through better rates and lower fees, and invested back into the local communities we serve. When you are selecting a financial institution, it’s a choice between a business that serves its shareholders or one that serves you.

Myth #2: “You need to carry a balance on your credit card to build credit.”

The Myth: To show you’re a good borrower, you need to leave a small balance on your credit card each month and make payments on it.

The Truth: This myth is not only false, it’s expensive! You do not need to pay a single cent in interest to build a good credit score. Your credit score is built on two main things:

1. On-time payments: Always paying your bill by the due date.
2. Credit utilization: Using only a small portion of your available credit limit.

The smartest way to build credit is to make small, regular purchases on your card (like a streaming subscription or your weekly coffee) and pay the bill in full and on-time every single month. This proves you’re a reliable borrower without costing you anything.

Myth #3: “My student account has no service fees.”

The Myth: My bank doesn’t charge service fees, so I don’t have to worry about hidden costs.

The Truth: "Free" often comes with an asterisk. Make sure you read the fine print. There are often limits on benefits after an introductory period, or some financial institutions will charge account fees if your balance drops below a specific amount. You need to make sure there are no hidden costs, as this lack of transparency can lead to surprise charges when you can least afford them.

When choosing a financial partner, look for true transparency. You should have freedom to use your money without worrying about penalties. As a member and shareholder at Northern Birch you have the advantage of no fee chequing and savings, unlimited no fee purchases with your debit card, with 5 free Interac e-Transfers® every month, unlimited transfers from chequing to savings, and ding-free withdrawals at exchange network ATMs.

Myth #4: “It’s too much hassle to switch banks.”

The Myth: Switching all my automatic payments and learning a new system is just too much work. I’ll stick with what I have.

The Truth: It’s easy to feel this way, but the reality is that switching is simpler than you think. The whole process involves filling out a few forms online and one quick visit to a branch. It takes less time than binge-watching a couple of episodes of your favourite show.

Think of it this way: spending one hour to switch could save you over $100 a year in fees. That’s a pretty good return on your time!

Myth #5: “I’m just a student; my bank doesn’t really care about me.”

The Myth: To a giant bank, I’m just a small, temporary account. I’m a number, not a person.

The Truth: At some institutions, that can unfortunately feel true. But at Northern Birch Credit Union, the entire model is built on personal relationships. You aren’t just a customer; you are a member and an owner. We take the time to know your name and understand your goals. When you have a question, you can talk to a real person who is genuinely invested in your financial well-being.

Choose a Partner You Can Trust

Navigating your finances during university is much easier when you have a partner committed to honesty and your best interests. You deserve a financial institution that puts you first – with student-friendly accounts and services, personal service, and a commitment to transparency and trust.

Bank with a partner who has your back. Open an account today and we'll start you off with a $75* bonus.

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