As the academic year begins, students will be facing significant financial challenges
Going to university is generally not a life of luxury with tight budgets accepted as the payoff for future prosperity.
However, as the fall semester gets underway millions of Canadian students begin their higher education at a time of elevated costs, high interest rates, and the potential for recession that could limit their part-time working options.
A recent report shows that students believe that their education will open more doors for them and make it easier to succeed, but also that the costs of higher education is concerning.
A new survey from TD Bank Group highlights the challenges facing students with 73% of former students saying they believe the current cohort have greater affordability issues than they did during their college years with graduates over 55 were most likely to say so.
Hindsight is a wonderful thing and 56% of past students said that they didn’t really think about preparing their financial futures when they started their education, but this is changing with 40% of Gen Zs doing so compared to just 18% of Millennials and 11% of Gen Xers.
Read more: Gen Z Pension plans most important benefit
"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.
TD suggests several ways for new students to start planning their financial future including creating a budget for school, building their credit score, and starting to save regularly.
