A new survey from TD Bank Group revealed the challenges many Canadian students and parents are currently facing when it comes to funding post-secondary education.
Sixty-five per cent of students define themselves as financially unstable and nearly half (45 per cent) are currently unable to adequately cover basic needs such as food and housing. Over a third (37%) of students also regularly compare their financial situation to others, with 28 per cent feeling inadequate around those who appear to be financially better off. Of the students surveyed, 64 per cent have some form of a budget to track their monthly expenses but less than half (41 per cent) say they are able to follow it on a regular basis.
Although many students do have a budget in place, 61 per cent say they wish they knew more about budgeting and financial planning strategies, and almost half (46 per cent) would like to learn more about savings and investment vehicles such as RRSPs and GICs. Interestingly, one in five (20%) of students now primarily get their financial advice from social media platforms such as TikTok, Instagram and YouTube.
“Our survey shows that many Canadian post-secondary students wish they knew more about budgeting and managing their finances, and it’s encouraging to see them interested in seeking advice,” said Emily Ross, VP, Everyday Advice Journey at TD. “That said, it’s prudent for students to exercise some caution when taking financial advice from certain sources on social media platforms, which are often unvetted and untailored to each individual and their unique circumstances.”
Majority of parents providing significant financial support, but acknowledge their child needs to improve their spending habits
When looking at it from the parents’ perspective, 94 per cent of parents of post-secondary students say they provide some level of financial support to their child, with 58 per cent saying they provide a significant amount of support.
Parents are also apprehensive about their child’s budgeting capabilities with 87 per cent believing it needs improvement. Key areas for improvement parents identified include:
- Developing better spending habits (60 per cent)
- Better financial literacy (42 per cent)
- Less reliance on their parents for financial support (37 per cent)
- Using financial apps to track their budget (27 per cent)
“Coming out of the survey, we can see that Canadian parents recognize areas in their children’s financial knowledge and spending habits that could use some improvement,” adds Ross. “At TD, we understand that this can be challenging when faced with the financial pressures that come with post-secondary studies and are here to provide solutions that can ease this burden for parents, while also helping to educate students. Our team of certified professionals and budgeting tools can support parents and students who want to reprioritize their savings and successfully navigate the costs of higher education with greater confidence and less stress.”
Helping post-secondary students and parents prepare for the future
TD offers a number of tools and resources to help students and parents with budgeting and financial planning for post-secondary education:
- TD Student Budget Calculator is designed to help students manage their finances more effectively by inputting various sources of income and expenses, such as part-time job earnings, financial aid, tuition, textbooks, and other living costs to see where money is going and where spending may need to be adjusted.
- TD MySpend allows users to control their savings and spending by tracking daily and monthly cash flow, creating a wish list of savings goals and getting insights to help make these goals a reality.
- The TD Student Advice Hub helps students navigate their financial journey while in school and beyond through a variety of financial literacy planning tools and advice.
