What to know
- 89% of students surveyed experienced financial stress, mainly over groceries, housing, and debt.
- 45% turn to AI or social media for financial advice, but only 32% verify the information.
- 76% said money affects their well-being or academics, with mental health and focus among the biggest impacts.
- 23% lack budgeting skills, while 89% want to learn more about investing.
Preparations for back-to-school are well underway, although some shoppers may be penny-pinching ahead of the new school year, with a new study showing many post-secondary students are feeling financial strain.
A new study by TD looked into the financial impact on university and college students in Canada, polling 1,750 participants, including 255 students. The findings revealed that 89 per cent of participants experienced financial stress this summer.
The survey responses showed that the cost of essentials like groceries and housing was participants’ biggest concern.
The survey also showed that students are increasingly trusting A.I. and social media information, with 56 per cent saying they trust the financial advice they receive from these online platforms.
Nearly half of students, about 45 per cent, said that they turn to A.I. tools or social media over family or financial institutions for financial advice and assistance. Additionally, 90 per cent of those students said they have acted on advice they were given through those methods, although only 32 per cent went ahead on verifying the information before following through.
A lasting impact on students
Survey findings show 76 per cent of students felt that their wellbeing and academic performance were affected by financial stress, with 42 per cent reporting poor mental health impacts.
About 31 per cent of students say their focus on studies was impacted by money worries, while another 29 per cent said the stress has affected their grades, and 27 per cent said it has affected their sleep.
One in five students reported money was causing them more stress than school itself.
When it came to financial issues, 41 per cent of participants said budgeting difficulties and social spending were their biggest stressors, while 35 per cent said debt management, like credit card balances and student loans, was their main issue.
Financial literacy gap
Despite many looking toward A.I. and social media for help, 23 per cent of students still reported not knowing how to build or maintain a budget.
Nevertheless, students still say they want to learn more about investing, with 89 per cent interested in looking into the basics, as well as different strategies and options for investing with a smaller budget.
Methodology
The TD survey was conducted through the Leger Opinion panel between July 29 and Aug. 17.
The participant pool consisted of 1,750 Canadian adults across the country, including 255 post-secondary students aged 18 to 29, as well as 255 parents of post-secondary students. There was no margin of error provided.
