Many students say cash won't last past Christmas — RBC poll
RBC has three simple tips to help students manage their
finances
TORONTO, August 18, 2009 — University and college
students are becoming increasingly concerned about whether
they have enough money to get through the school year, according
to a new RBC/Ipsos Reid Student Finance Opinion poll. The
survey found that 43 per cent of new college and university
students and 35 per cent of returning students feel that they
can only stretch their spending money as far as the Christmas
break, with half (50 per cent) of all post-secondary students
expecting it to run out before the school year ends.
The poll found that almost 8 in 10 (79 per cent) post-secondary
students plan to work part-time while in school, with almost
half of those indicating they need to work to pay the bills.
"Working to make ends meet is an additional challenge
for students, with at least three-quarters concerned that
working will affect their grades and two-thirds believing
that worrying about money will have a negative impact on their
studies," said Kavita Joshi, director, Student Banking
at RBC. "Getting the right advice and finding the proper
academic, social and financial balance will minimize stress
and make their school year easier to handle."
The poll indicated that almost half (48 per cent) of returning
post-secondary students like being responsible for their own
finances and 37 per cent find that managing their finances
while in school is harder than expected. Given the recent
economic conditions, two-thirds of returning students (66
per cent) also plan to be more cautious with spending this
school year.
"With the student unemployment rate at an all-time high,
managing your finances responsibly and planning ahead becomes
even more important," adds Joshi. "It costs money
when you don't plan. You may end up buying food because you
didn't take a lunch to school. It's fast but not necessarily
cheap."
During the last year, when money was tight, students said
they cut back on essentials and incidentals: 61 per cent spent
less on food; 57 per cent spent less on alcohol; 23 per cent
didn't buy all the books they needed; and 11 per cent paid
their tuition late.
Here are Joshi's three key tips to help students manage
their finances:
1. Know yourself
Understand your financial mindset and what's important to
you. Some students might opt to take on additional hours at
work and cut their course load. Other students feel they can
take on a little more debt. Both are valid choices. It comes
down to your financial comfort level and being realistic about
what you can live with.
2. You're in control
Students must learn to manage many new expenses - from tuition
to housing. It's important to identify all of them and assess
how much you're actually spending. There are lots of moving
parts that can seem overwhelming, but you have choices. You
are the one in control of your spending with the discretion
about whether, when and how much you spend.
3. Get informed
Once you understand your spending, you can find the right
solutions. Students need to explore all financial options
including work, bursaries, loans and scholarships. Seek advice
from experts like financial counsellors on campus or your
local bank.
Joshi recommends students use tools like RBC's Better Student
Life website (about money management) and Student Budget Check
(to calculate the money you need to get through the school
year, based on your spending). Both are available at www.betterstudentlife.ca
These are some of the findings of an RBC poll conducted by
Ipsos Reid between June 9 and June 17, 2009. This online survey
of 1,200 Canadian students, either returning to post-secondary
school or intending to start at post-secondary school in September
2009, was conducted via the Ipsos I-Say Online Panel, Ipsos
Reid's national online panel. No weighting of the final sample
was done as we assume that the respondents are a random sample
of Canadian students. With a sample of this size, the results
are considered accurate to within ±2.8 percentage points,
19 times out of 20.
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Media contacts:
Matt Gierasimczuk,
RBC Media Relations, 416-974-2124
Suzanne Willers,
RBC Corporate Communications, 416-974-2727
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