More Than Half Of Canadian Students Think They’ll Need Financial Help From Family Or “Bank Of Mom And Dad” To Make It Through The School Year

A recent survey by Ipsos on behalf of Simplii Financial highlights some challenges and contradictions when it comes to Canadian students and how they grade themselves on personal finances. While a majority of post-secondary students (53 per cent), claim to have achieved financial independence, a greater proportion (62 per cent) admit they won’t be able to make it through the school year without a bailout from family or the “bank of mom and dad.”

The poll reveals that around two-thirds (64 per cent) consider themselves to be financially literate—three-quarters (75 per cent) describe their parents as being the same, but three-fifths (60 per cent) are less confident in the financial literacy of their peers, indicating that they think the group as a whole is struggling.

Do students get a passing grade?

• Only one in ten (10 per cent) grade themselves an “A” on financial independence
• The highest proportion (32 per cent) of students give themselves a “C” grade
• Just 6 per cent assign themselves an “F”

Regardless of where they land on financial literacy or independence, most of Canada’s post-secondary students indicated that they practice fiscally responsible behaviours, such as:

• Knowing and understanding credit scores (80 per cent)
• Tracking their spending (78 per cent)
• Understanding credit card interest (76 per cent)

“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, Simplii Financial. “Many of them also expect to face more financial challenges with today’s higher cost of living.”

For many students, their upbringing may have helped instill these fiscally responsible behaviours—three in five (60 per cent) feel their financial education has prepared them well for adulthood. The results imply that Canada’s post-secondary students are, on balance, receiving adequate financial education and training, but reliance on loved ones for financial support may be driven in larger part by the job market for post-secondary students.

More than half of students (57 per cent) expect it to be challenging to find employment, co-ops, or internships next summer, and a majority (55 per cent) think it will be difficult to secure part-time employment during the school year to help offset their expenses. Almost half (45 per cent) feel that their earnings from their summer employment won’t cover the cost of living during the school year.

Some tips from Simplii Financial on how students can manage the cost of living include:

• Using student discounts – Many universities and colleges publish discounts in their student handbooks, plus if your student card isn’t cutting it, programs like Student Price Card may also be worth a look.
• Leveraging cash-back offers – Right now Simplii Financial has a $500 cash-back offer for new clients, and it could be the difference between financial independence or relying on the “bank of mom and dad.”
• Focusing on networking – Finding a summer job or part-time employment the usual way can be a big demand on your time, so networking with professors or other professionals could be just what you need to bag a research position or summer co-op.