More Than Half of Canadian Students Anticipate Needing Financial Help from Family to Survive the School Year
8-28-2024
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Despite Demonstrating Financial Responsibility, Many Expect to Struggle with Rising Costs
TORONTO, Aug. 27, 2024 /CNW/ - A recent survey conducted by Ipsos on behalf of Simplii Financial has shed light on the financial challenges faced by Canadian students, revealing a significant gap between perceived financial independence and the reality of rising costs. While 53% of post-secondary students claim to have achieved financial independence, a larger percentage—62%—acknowledge that they will likely need financial assistance from their families or the so-called "bank of mom and dad" to get through the school year.
The poll also highlights that a substantial portion of students view themselves as financially literate, with 64% expressing confidence in their own financial knowledge. However, this confidence wanes when students consider their peers, with only 40% believing that their fellow students are equally financially savvy.
Do Students Pass the Financial Literacy Test?
Just 10% of students grade themselves with an "A" in financial independence.
The largest group, 32%, assign themselves a "C."
Only 6% give themselves an "F."
Despite their modest self-assessments, most Canadian students demonstrate responsible financial behaviors, such as:
80% understand and know their credit scores.
78% actively track their spending.
76% are aware of how credit card interest works.
"While Canadian post-secondary students are financially responsible, they're hard on themselves and their peers when it comes to understanding personal finance," says Jimmy Dinh, Managing Director and Head of Simplii Financial. "Many of them also expect to face more financial challenges with today's higher cost of living."
Financial Struggles Ahead
The survey suggests that while financial education has prepared many students for adulthood—60% feel adequately trained—there are concerns about the current job market's ability to support students financially. More than half (57%) expect difficulties finding employment, co-ops, or internships next summer, and 55% anticipate challenges securing part-time work during the school year to cover expenses. Nearly half (45%) believe that their summer earnings will not be enough to sustain them through the academic year.
Tips for Managing the Cost of Living
Simplii Financial offers several tips to help students navigate the rising cost of living:
Use Student Discounts: Many institutions offer discounts through student handbooks or programs like the Student Price Card.
Leverage Cash-Back Offers: Simplii Financial currently offers a $500 cash-back deal for new clients, which could help students maintain financial independence.
Focus on Networking: Building connections with professors or professionals could lead to research positions or summer co-ops, reducing the stress of job hunting.
Survey Methodology
These findings are based on an Ipsos poll conducted between July 26 and 30, 2024, involving 400 Canadian post-secondary students aged 18 and older. The sample was sourced from the Ipsos panel and weighted according to Canadian regional Census proportions. The results are accurate to within ±6.0 percentage points, 19 times out of 20, had all Canadian post-secondary students been surveyed.
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