Albertan post-secondary students most likely to be working this summer to cover the cost of school
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- TD Canada Trust 2011 Student Finances Survey reveals majority of Albertan students stressed about money -
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CALGARY, Aug. 10, 2011 /CNW/ - Are Albertan post-secondary students missing out on a summer vacation? According to the TD Canada Trust Student Finances Survey, Albertan students are the most likely in the country to work during the summer to cover the cost of school.
Despite their strong work ethic, with rising tuition and youth unemployment worries, many Albertan students admit they are feeling the heat. More than half (55%) feel either anxious (38%) or stressed (17%) when they think about how they are going to pay their way through school. Further, 59% expect to graduate with debt hanging over their heads with 21% anticipating they will owe more than $25,000. One third (35%) say their top savings priority is debt repayment.
"Earning a post-secondary qualification requires a big investment, and it's reassuring to see that so many students are taking their finances seriously, managing to save for the future or to pay down debt," says Jane Russell, Senior Vice President, TD Canada Trust, Pacific Region. "We know that managing finances on your own can be stressful or even intimidating, so we encourage students to come talk to us if they need help figuring out how to best manage their money."
Students in the province overwhelmingly feel having a post-secondary qualification on their resume will help them stand out from the crowd in today's job market (96%), and 45% of these students think it's vital. While 34% feel practical training at a trade school or college degree is sufficient to be competitive in today's workplace, 32% feel an undergraduate degree is necessary and 31% feel an undergraduate plus master's degree is necessary.
The challenge for many is the cost. The average cost of a four-year university degree is $80,000, and 84% of Albertan students say this feels like "a fortune." To alleviate some of their concerns, in addition to working throughout the summer, three-quarters work during the school year (76%). More than half (55%) work more than 11 hours a week to make ends meet.
What students spend their money on: getting around, eating out and technology
Outside of staple expenses, the top discretionary expenses Albertan students face are transportation costs, such as gas, car insurance and public transport (41%), eating out at restaurants (31%), and new technology like mobile phones and laptops (14%).
How students manage their expenses
A vast majority of students in Alberta pay electronically for day to day expenses. Almost half (48%) say the most convenient way to pay for day to day expenses is using a credit card; while four in ten (40%) say debit.
As they enter financial adulthood, students should take advantage of the financial benefits available to them. For instance, a student bank account, automatic savings program and student credit card are all important items in a student's financial toolkit, backed by a good understanding of how to make all these products work for them. This includes:
Students want help
Two-thirds (64%) of Albertan students say they are interested in receiving professional advice on how to budget, save and reduce their debt.
"There are plenty of financial tools, resources and advice available to students who are looking for advice, whether online, at your bank or through a knowledgeable and experienced family member," says Russell. "Financial literacy is a life skill and critical to your future so make sure you educate yourself or reach out to someone who can help."
For more information on student personal finance and budgeting, please visit a TD Canada Trust branch near you or http://www.tdcanadatrust.com/student/.
About the 2011 TD Canada Trust Student Finances Survey
The 2011 TD Canada Trust Student Finances Survey polled a representative sample of 1,000 Canadian adults aged 18-24, including 108 in Alberta, who are currently enrolled or were previously enrolled in the past two years in post-secondary education. Interviews were conducted by telephone between June 28 and July 7, 2011.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, to credit protection and travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as in over 1,100 branches - most open 8 'til late and many now open Sunday. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.