A quarter of B.C. students facing a harsh reality more stressful than school
With school resuming in just a few weeks, a new survey reveals that B.C. students are dealing with growing financial strain.
TD found that 84 per cent of B.C. post-secondary students said that financial stress has a negative impact on their well-being and academic performance.
It also found that 26 per cent said that they are more stressed about money than school.
This is “alarming as a stat,” said Joe Moghaizel, TD’s vice-president of everyday advice journey, in an interview with Daily Hive Urbanized.
“This isn’t just about tuition and the cost of schooling. It’s [also] about the cost of living and being able to afford some of the essentials and necessities of everyday life: groceries, rent, transportation.”
The survey found that 94 per cent of B.C. students reported experiencing financial stress in the last three months, with 57 per cent citing the cost of groceries and housing, 43 per cent citing budgeting challenges and social spending, and 20 per cent citing debt management.
Moghaizel said that students — like everyone else — are dealing with the high cost of living.
“The financial stress that they’re facing today is definitely connected to the environment that we’re operating in, which is a higher inflationary environment,” he said.
Further, with a tight labour market and high youth unemployment rates, students might also be having a harder time making money. For example, if someone traditionally just needed one side gig to get by, they now might need multiple.
Build a budget
Despite the fact that post-secondary students are struggling, Moghaizel said that “it only gets better” from here.
Students are currently in a period of life with their lowest earning potential, and they’re learning how to manage new expenses they’ve never dealt with before. However, he said that things like earning potential and job stability will improve in the long run.
In the meantime, Moghaizel encourages students to work on a few financial habits to set themselves up for success in the years to come.
His key piece of advice is to create a budget so that you have a good understanding of what money is coming in and going out.
According to TD, this “doesn’t have to be complicated.”
The bank suggests adding all of your income sources (including from part-time work, scholarships, student loans, and family support). Next, write down all your expenses and divide them into needs (like tuition, rent, and groceries) and wants (like eating out).
“And being able to have that view on paper, as simple as that, and be able to understand what that looks like, is the beginning of being aware of your finances, which then generates the confidence and the small habits to live within your budget and start to make progress,” Moghaizel said.
If your expenses are greater than your income, you can look for areas to reduce your non-essential spending. And if you have surplus money, Moghaizel suggests that students look for trusted advice on how they could invest that money, such as putting money into a savings account for a rainy day or opening a tax-free savings account.
“It’s definitely recommended to start as early as you can,” he said.
Using AI for financial advice
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Forty-one per cent of B.C. students reported that they’ve used AI tools or social media for financial advice or information. Moghaizel said that this is positive, in that it indicates that students have curiosity about finances.
But he warned that people should not rely on or act on this information without validating it first.
“It’s better to pursue trusted sources of advice, people that you can just validate their motivations and whether they’re being unbiased in the advice that they’re giving, so that you can validate before you act.”
Moghaizel suggested that students start by having financial conversations with their parents and other people they trust, so that they learn from people who’ve already gone through similar circumstances. He also suggested finding information from financial institutions, either online or by visiting a branch.
TD surveyed 1,750 Canadian adults between July 29 and Aug. 17, including 255 post-secondary students and 255 parents of post-secondary students.