With summer coming to an end, that means it is the start of post-secondary education for students all across Canada.
However, despite fiscally responsible behaviours, many expect to struggle with the cost of living.
Ipsos, an international market research firm partnered with Simplii Financial, a Canadian direct bank based out of Toronto Ontario, surveyed from July 26 to July 30. This research involved interviewing 400 Canadian post-secondary students aged 18 and older through an online platform.
According to Simplii and Ipsos, a significant number of post-secondary students — 53 per cent — assert that they are financially independent. However, a larger share, 62 per cent, confess that they would struggle to complete the school year without financial assistance from their families or the “bank of mom and dad.”
The survey also shows that approximately 64 per cent of respondents view themselves as financially savvy. In contrast, 75 per cent believe their parents possess similar financial knowledge.
However, only 60 per cent express confidence in the financial literacy of their peers, suggesting a perception that their contemporaries may be facing challenges in this area.
Just 10 per cent of students consider themselves at an “A” level in financial independence. At 32 per cent, the majority opt for a “C,” and a small fraction, only six per cent, give themselves an “F.”
Officials also noted that most post-secondary students in Canada, irrespective of their financial literacy or independence, report practicing responsible financial behaviours. This includes 80 per cent who are familiar with credit scores, 78 per cent who keep an eye on their spending and 76 per cent who understand credit card interest rates.
“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.”
A significant number of students credit their upbringing for fostering responsible financial habits, as evidenced by 60 per cent who feel well-prepared for adulthood due to their financial education. This indicates that, generally, post-secondary students in Canada are receiving sufficient financial training.
The survey reveals that 57 per cent of students anticipate facing hardship in securing jobs, co-op positions, or internships next summer.
Additionally, 55 per cent believe that finding part-time work during the academic year will be a challenge, making it harder to manage their expenses. Around 45 per cent of respondents expressed concern that their summer earnings will not be sufficient to cover their living costs throughout the school year.
Some tips from Simplii Financial on how students can manage the cost of living include using student discounts, leveraging cash-back offers, and focusing on networking.
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