Canadian post-secondary students are proving themselves to be financially aware of the cost of education and the responsibility to ensure those expenses are covered, according to two studies published on Wednesday.
Almost three-quarters of students (73%) surveyed for new research conducted for Toronto-based Royal Bank of Canada say they are concerned about having enough money to pay for their post-secondary education.
Thus, most students are thinking ahead and trying to save enough to afford their academic expenses. More than one-third (35%) of Canadian students report they are saving as much as they possibly can to prepare for school and 45% report they have increased their savings substantially — although they admit they could have saved more, according to a new survey from Tangerine Bank, a wholly owned subsidiary of Toronto-based Bank of Nova Scotia.
“It’s encouraging to see that many young Canadians are working hard to save their money, invest in their future and become financially independent,” says Silvio Stroescu, managing director of deposits and investments at Tangerine, in a statement. “While it may be challenging to save money and go to school at the same time, good money habits will carry on long past graduation and help establish the discipline needed to stay on track.”
Forty-one per cent of respondents in the Tangerine survey are setting aside more than $5,000 to help finance their education in the coming school year. These savings will come in handy as 34% of students state they alone will fund their post-secondary education and 29% will pay at least half of their school-related expenses. One-quarter state that they will be responsible for producing spending money, although parents or other family members will help with school costs. Only 7% say that others will fund their education and discretionary expenses.
Although students are attempting to save to pay for their post-secondary education, 64% still report having student debt and 27% of those respondents say their debt amounts to more than $10,000, according to the Tangerine survey.
Both the RBC and Tangerine studies also gathered data on students’ top concerns, although the results diverged in this area.
The Tangerine survey found that students’ top concern is exams, with 48% citing this as a leading cause of stress and 24% citing term papers and projects.
The respondents in the RBC study were more worried about their future, with concerns including getting a job after graduation (45%), making enough money to support themselves (38%) and being happy with their jobs (36%).
RBC’s research also found that students are concerned about how long they will live with their parents following graduation, with 58% nervous about this.
“The transition from student to adulthood comes with apprehension, but for students, the biggest step to independence is moving out of the house,” says Mandy Mail, director of student banking at RBC. “As they worry about the cost of living, student debt, grades and job prospects, staying at home longer than they want weighs on them heavily, too.”
Ipsos Reid conducted RBC’s 2015 Student Finances poll through an online survey of 1,003 students between the ages of 17 and 24 from June 23 to July 7. Tangerine’s results came from an online survey of 1,090 Canadian university students between the ages of 18 and 25 from July 23 to Aug. 4.