A new poll released by Embark, Canada’s education savings and planning company, reveals post-secondary students are finding it harder to simultaneously pay for and go to school – leaving them education rich, but cash poor.
The new survey of Canadian students reveals the vast majority (82%) of students find the financial realities of a post-secondary education to be overwhelming.
Over 1-in-4 (26%) Canadian post-secondary students said they have considered dropping out of their program because of money, new poll finds
Despite 3-in-4 (75%) reporting that their parents have helped them financially, many students are stretching themselves far too thin.
The data outlines the financial realities of today’s post-secondary students and the lasting impact as they enter their careers, as well as what steps can be taken to improve the probability of better financial outcomes.
Student debt has become an accepted part of the post-secondary experience, with almost half (48%) of students polled currently having, or expecting to have, student debt. In fact, 1-in-3 students (33%) said they currently have more debt than savings.
When asked, 49 per cent stated they were worried about the future with how much debt they were taking on, and over 4-in-5 (82%) claimed the financial realities of a post-secondary education were overwhelming.
The cost of education has historically outpaced Canada’s target inflation rate, and both the cost of living and education have rose significantly in recent years.
As a result, 74 per cent of students polled said it is very hard to afford a post-secondary education and over half (52%) have had to cut out certain necessities to make ends meet in today’s high-priced environment.
“In today’s challenging job market, it is particularly difficult for younger Canadians to secure part- and full-time jobs. For those who rely on employment to support their education, this adds another layer of difficulty on top of rising education and living costs,” said Andrew Lo, President & CEO of Embark.
“Our survey showed that 68 per cent of post-secondary students wish they had saved more money before starting school, a sentiment that will only grow stronger in our current economic conditions. Students and their parents would benefit from starting education savings early to provide a larger financial cushion in volatile times.”
Along with the poll results, Embark has shared some tips for setting up students for success.
For Parents, if you are interested in helping your child pay for school, the first step is to forecast the cost of your child’s education. Figure out how much of it you would like to help pay for, and from there, work backwards to understand how much you will have to save.
Embark can help with its RESP calculator, which can project your child’s costs and help you define your goals.
For Students, learn more about costs as well as program requirements and demands. From polling post-secondary students, 45 per cent wish they had done more research into different schools while applying for their post-secondary education.
Embark has just launched its Career & School Matcher that can help chart a post-secondary path based on your desired profession and project costs.