The life of a post-secondary school is expensive. Very expensive. From increased gasoline and food prices to higher living expenses and tuition, most students need a summer job in order to help pay and ease some of their expenses. But while 80 per cent of students have a summer job, 60 per cent are still worried their hard-earned cash will not last them through the school year.

“Going to college and university is a stressful time, and worrying about your finances on top of your studies can add another incredible burden to students,” said Laurel Ostfield, spokesperson for Capital One Canada. “That’s why it is more important than ever for young people to learn the basics about money, budget management, and the difference between needs versus wants.”

Yet, according to Capital One Canada’s back-to-school survey, students are lacking the basic skills needed for money management. More than half of students are not developing or sticking to a budget and forty-six per cent of students are saving less than half of their summer earnings for the upcoming school. Even worse, only one in ten are not saving any of their summer earning at all. In fact, most of this hard-earned money is spent on restaurants (45.2 per cent), groceries (44.4 per cent), alcohol (32.9 per cent), clothes (32.7 per cent), and transportation (25.18 per cent).

So why are so many students lacking the necessary skills needed to secure their finances for the school year? According to the survey, about fifty per cent of students were taught how to manage their money from their parents, 1.8 per cent learned from school and over forty per cent taught themselves.

“We have students who come to us for credit counselling services on a regular basis. Unfortunately, by the time they come to see us, they are usually deep into debt and creditors are knocking at their door,” says Elena Jara, creditor relations specialist and education coordinator for Credit Canada. “This time of year is a great time to sit down with your children and discuss finances. Teens are eager to learn about money management and they want to learn about it from their parents.”

When students no longer have their summer earnings to rely on, many dip into savings to cover expenses or exceed their credit limit just to make ends meet. The survey also found that from the 502 men and women interviewed throughout Canada—who were 18-25 years of age and were planning on attending post-secondary school in the fall—eighty-two per do not review their credit score annually. Thirty-nine per cent of these students do not pay more than the minimum amount on loans monthly and fifteen per cent of students do not make their payments on time every month.

Students need to learn the financial skills that are necessary in order to stay money-wise. Capital One advises students not to pay bills late; borrow money to pay off another debt or loan; obtain a new credit card to pay off an old one and dip into savings to cover everyday expenses.






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