TD Bank survey reveals financial instability among students, many relying on parents for financial support
A survey conducted by TD Bank Group highlights the financial challenges many Canadian students and their parents face when financing their higher education.
The survey found that 65% of students feel financially insecure, and nearly half (45%) struggle to meet basic needs such as food and housing.
More than a third of students (37%) regularly compare their financial situation to others, and 28% feel inadequate compared to those who appear financially stable.
Sixty-four percent of students create some kind of budget to manage their monthly expenses, but less than half (41 percent) stick to it consistently.
The survey also revealed that 61% of students would like to know more about budgeting and financial planning strategies, and 46% would like to learn more about savings and investment options such as RRSPs and GICs.
Emily Ross, TD's vice president of Everyday Advice Journey, noted that this is an encouraging sign as many students want better financial management skills. However, she warned against relying on unverified financial advice from social media and stressed the importance of personalised financial guidance.
From a parental perspective, the survey shows that 94 percent of parents of tertiary students provide financial support, with 58 percent of them providing significant amounts of aid. However, 87 percent of parents believe their children need to improve their budgeting skills.
Top areas for improvement include developing better spending habits (60%), improving financial literacy (42%), relying less on parental support (37%) and using financial apps to track budgets (27%).
Ross also commented on parents' concerns, saying TD understands the financial pressures that come with higher education and is offering solutions to ease this burden.
TD resources include the TD Student Budget Calculator, which helps students manage their finances by tracking income and expenses, and TD MySpend, an app that helps users manage their savings and spending by monitoring cash flow and setting savings goals.
Additionally, the TD Student Advice Hub provides financial literacy tools and advice to support students on their financial journey during and after graduation.