Affordability in BC is an ever-present issue, and according to some new data, many students in the province need help from their parents to pay for school and their basic needs.
We’ve done stories in the past about how the bank of mom and dad was required for many millennials to even consider getting into the housing market, and it seems to be the case for post-secondary options as well.
A TD Bank survey has found that a whopping 93% of BC parents are helping to pay for their children’s post-secondary studies, while 67% — the highest in Canada — say the financial support they’re offering is significant.
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TD’s survey found that 70% of students, which is higher than the national average, have defined themselves as “financially unstable” in BC, while 44% cannot afford basic necessities like food and housing.
One primary reason for the struggle is that three in 10 students don’t have jobs. Another component is that six in 10 students who responded to the survey said they don’t have a budget to track their monthly expenses.
Over half of students (64%) who responded to the survey said they wished they had more knowledge about budgeting and financial planning. Many also responded, saying they didn’t know the benefits of building good credit and wanted to learn more about RRSPs and GICs.
According to recent data from StatCan, which examined college student debt levels, in 2020, over 46% of students owed some debt when they graduated. The amount of debt averaged around $16,700.
Students pursuing a bachelor’s degree owed an average of $30,600 at graduation. The average student debt increased for those in Master’s or Doctorate programs.
An additional finding from the TD survey is that a relatively high percentage of people who responded (18%) get their financial advice from platforms like TikTok, Instagram, or YouTube.
TD says that the needs of post-secondary students are financially straining their parents. Of respondents, 71% of parents said supporting their kids this way impacts their ability to meet their basic financial needs or afford things like family vacations.
According to parents, one solution is for their kids to develop better spending habits, increase their financial literacy, and rely less on them, which might sound easier said than done for some.
Are you one of the struggling BC students represented by this survey? Let us know your situation in the comments, or email [email protected] if you want to share more about your financial struggles as a student or parent of a student in BC.