Canadian students are sweating over more than just getting good grades. They are stressed out over having enough money for school and significant debt on graduation day, according to the 2011 RBC Student Savings and Spending Poll.
“Many post-secondary students are living on their own for the first time, juggling school and living expenses—all of which can be very stressful,” says Kavita Joshi, director, Student Banking, RBC. “It’s not surprising that students tend to keep their worries about loans and expenses on the backburner; a budget can certainly help you stay on top of your debts and alleviate your financial stress.”
One-third (33%) of first-year post-secondary students (37% of females and 27% of males) expect to have significant debt on graduation day while having enough money for school is a worry for 54% students, bigger for females (61%) than for males (48%).
This student worry is well-founded: the class of 2005 graduated with an average of $18,800 in student debt, up from $15,200 a decade earlier, according to a January 2010 Statistics Canada report. Additionally, the proportion of post-secondary graduates who owed $25,000 or more on their student loans jumped to 27% in 2005, from 17% in 1995.
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On a more positive note, the study revealed that students are taking measures to budget and save. It found that 34% of students are using online and mobile budgeting tools to control their spending.
“Online financial management tools are a great resource to help you keep track of how much you are spending and where you are spending it,” added Joshi. “When you have your finances under control, it’s much easier to focus on what you want to achieve in school and after graduation.”