Three-quarters of former Canadian students believe current students face more financial challenges than previous generations, new TD survey reveals
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New TD survey reveals that graduates over 55 were most likely (52 per cent) to say today's students face many more financial challenges than they did when attending school
TORONTO, Aug. 29, 2023 /CNW/ - Financially, it's a tough time to be a student.
According to a recent survey by TD Bank Group, three-quarters (73 per cent) of Canadians believe that current students face more challenges related to affordability than when they attended university, college, or technical school.
While navigating new experiences like living away from home, future finances were not always top of mind with 56 per cent of those having attended post-secondary school stating they were not thinking very much about preparing for their financial futures when they started their education.
Among the different generations, it appears recent economic headwinds were driving an increased focus on forward-thinking, financial planning, with Gen-Z attendees significantly more likely (40 per cent) to say they thought about their long-term financial future very much when entering a post-secondary institution, compared to Millennials (18 per cent) and Gen-X (11 per cent).
"For many, today's economic climate is particularly tough, especially for current students or those preparing to start saving for their post-secondary education. However, despite current economic pressures, this remains an important time for students to start thinking about proactive measures they can take to set themselves up for the future," said Emily Ross, VP, Everyday Advice Journey at TD. "To help make things more manageable for students, TD offers a range of resources like budgeting tools, products adapted to student`s needs, and professionals in branch or over the phone, who can provide personalized advice on your situation."
According to the survey, the majority of former students (59 per cent) would choose to speak to someone at their bank or financial institution for trusted advice. Away from the financial institution, the survey also found that Gen Z respondents were the most likely (21 per cent) to trust social media for financial advice, while only 7 per cent of Millennial and 2 per cent of Gen X respondents did so.
"While social media has become an increasingly popular channel for obtaining financial advice, it's important to still speak to a trusted source who understands your specific circumstances, and can provide tailored recommendations, such as parents or your financial institution, to consider all your options and set yourself up for a secure, long-term future," said Ross.
How students can prepare for financial success
- Budget for school: Create a budget by listing all the money you have coming in, such as scholarships, work, family, and student loans. Then calculate your expenses, such as tuition, fees, books, food, and rent, and subtract that amount from the money coming in. Tracking tools like TD MySpend, Student Budget Calculator, and the TD Cashflow Calculator can help students budget effectively throughout their studies.
- Build credit: Gen-Z respondents were the least likely (12 per cent) to be very aware of the benefits of building a strong credit score, but it's important for students to understand the benefits of building responsible credit, even if it's through small payments.
- Start your saving journey: Open a savings account like the TD Every Day Savings Account. Once it's set up, the TD Simply Save program automatically helps grow your savings every time you make a debit card purchase.
To help students gain confidence about staying on top of their finances while in school, TD has numerous resources available online.
About the TD Survey
This Maru Public Opinion survey conducted on behalf of the TD Bank Group was undertaken by the sample and data collection experts at Maru/Blue. 1,181 randomly selected adult Canadians who have attended a university, college or technical school (but not currently enrolled) and are Maru Voice Canada online panelists were surveyed from August 1st to August 2nd 2023. The results of this study have been weighted by education, age, gender and region (and in Quebec, language) to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Canada. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.9%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.
About TD Bank Group
The Toronto Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 16 million active online and mobile customers. TD had $1.9 trillion in assets on July 31, 2023. The Toronto Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group
