Most students claim financial independence, yet many still rely on family to cover school year expenses
A survey conducted by Ipsos on behalf of Simplii Financial reveals a mix of challenges and contradictions in how Canadian post-secondary students view their financial independence and literacy.
While 53 percent of students claim to have achieved financial independence, a higher percentage (62 percent) admit that they will need financial support from family, often referred to as the “bank of mom and dad,” to make it through the school year.
The survey shows that 64 percent of students consider themselves financially literate, and 75 percent describe their parents as financially knowledgeable.
However, 60 percent of students are less confident about the financial literacy of their peers, suggesting that many believe their fellow students are struggling in this area.
When grading their financial independence, only 10 percent of students give themselves an ‘A,’ while the largest group (32 percent) assigns themselves a ‘C’ grade. Additionally, 6 percent of students rate themselves with an ‘F.’
Despite these self-assessments, a significant majority of students engage in fiscally responsible behaviours: 80 percent understand their credit scores, 78 percent track their spending, and 76 percent understand how credit card interest works.
Jimmy Dinh, managing director and head of Simplii Financial, notes that while Canadian post-secondary students exhibit financial responsibility, they are often critical of themselves and their peers when it comes to personal finance.
He also points out that many students anticipate facing increased financial challenges due to the higher cost of living.
The survey suggests that upbringing has played a role in shaping these responsible financial habits, with 60 percent of students feeling that their financial education has adequately prepared them for adulthood. However, the need for family support may be partly driven by a tough job market.
Over half of the students (57 percent) expect difficulties in finding employment, co-ops, or internships next summer, and 55 percent foresee challenges in securing part-time jobs during the school year.
Moreover, 45 percent believe their summer job earnings will not be enough to cover their living expenses during the academic year.
Simplii Financial offers several tips to help students manage their living costs:
- Use student discounts – Many universities and colleges provide discounts, often listed in student handbooks. Programs like Student Price Card can offer additional savings.
- Leverage cash-back offers – Simplii Financial's $500 cash-back offer for new clients can help students bridge the gap between financial independence and reliance on family.
- Focus on networking – Building connections with professors or professionals can help students secure research positions or summer co-ops, which may be more time-efficient than traditional job searches.
These strategies aim to support students in navigating the financial challenges they face during their studies.
