A new CIBC poll reveals that amidst the rising cost of living, a tough student job market, and general economic uncertainty, Canadian post-secondary students are struggling to make ends meet as they head back to class this fall, with nearly half (48%) feeling uncertain about their ability to cover all expenses.
Managing expenses and financial pressures
Canadian students are balancing a range of rising expenses, with top costs including rent or residence fees, groceries and food, transportation, and entertainment or social activities. To help meet these financial demands, students are leveraging multiple funding sources – 78% hope to work during the school year and 53% will take out student loans. Despite these plans, nearly half (48%) say they feel overly dependent on their parents for financial support.
“Students across Canada are navigating significant financial challenges, from the rising cost of living, to unique student-related expenses,” said Frank Psoras, Executive Vice-President, Personal Banking Products and Payments, CIBC. “Many students are responding by finding additional sources of income and adopting effective budgeting strategies, such as creating a detailed budget and reducing non-essential spending.”
Key budget management strategies students are adopting include:
- Spending cuts: Creating a budget (55%), redeeming student discounts (36%), using loyalty cards (32%)
- Reducing discretionary spending: Cutting back on non-essentials (49%), staying in more (36%)
- Lowering living costs: Buying cheaper brands or using coupons (45%), living with family (40%)
- Reducing education costs: Applying for scholarships (35%), buying used textbooks (24%)
Students are also focused on building their financial skills, with 65% anticipating they will have a financial plan for the year and 67% believing their university or college should offer personal finance courses.
Embracing digital solutions
As students navigate these challenges, digital banking tools have become a cornerstone of their financial routines. The survey found that 92% of students are comfortable using digital or mobile banking solutions, and more than half rely on mobile or budgeting apps as their primary tools for managing money.
“Today’s students have grown up with technology and expect seamless, intuitive banking experiences that fit their busy lives,” added Psoras. “Students have unique needs when it comes to their banking and we are committed to helping them navigate this important transition with confidence by providing the advice, relevant offers and support they need to reach their goals.”
Supporting students’ financial journeys
As students and their families prepare for the back-to-school season, CIBC provides the support and resources necessary to pursue and achieve their ambitions.
The CIBC Best Student Life Bundle is a best in market offering designed to address the unique needs of students with a no-fee Smart Start or Smart for Student chequing account to help manage daily expenses, an eAdvantage Savings account, and a choice of student credit card to help build a credit history – available in-person at banking centres or through one digital application, serving both domestic and international students. Through partnerships with organizations like Skip and SPC, CIBC provides access to exclusive offers and discounts helping students with the savings and support they need to succeed throughout their academic journeys and into the future.
CIBC Smart Planner is an intuitive tool that gives students timely insights into their spending habits to help them track and understand their finances better and stay on top of their goals.
For more information about CIBC’s student banking solutions and resources, visit the CIBC Student Hub.
