One in Five Students Unable to Pay Bills After GraduationBy Andrew Rickard | August 19 2015 01:02PM
A poll has found that many Canadian post-secondary students are worried about their finances, and that about one in five do not think they will be able to support themselves after they finish school.
A survey conducted for CIBC asked students about their top financial concerns: 48% were most worried about covering their tuition fees for the upcoming school year while 37% were anxious about finding a good-paying job.
In addition, 37% of those surveyed said they are not sure if they will be able to manage their finances after they finish school, with 19% indicating that they do not expect to be able to support themselves.
The poll found that most students count on spending $10,000 to $30,000 a year for schooling and personal expenses; only 22% say their parents will cover their tuition and school costs, which CIBC notes is down sharply from the 33% who said they could rely on parental support in a similar poll last year. Asked about how much money they think they will owe when they leave school, 36% of the students contacted expect to graduate with $25,000 or more of debt.
"There is a clear link between managing your everyday expenses well during school and being in a good financial position when you graduate," comments Christina Kramer, Executive Vice President of Retail and Business Banking at CIBC. "While debt for tuition and books is a part of school for many students, it's important to avoid taking on additional debt by creating a realistic budget that factors in current needs as well as life after graduation."