Canada’s cost of living crisis and a tough job market is taking a toll on college and university students with nearly half saying they need financial support from either parents or other sources to meet their expenses, a new CIBC poll released Thursday shows.
General economic strain is making its way to Canada’s post-secondary students as they get ready to head back to school this fall.
The poll comes after a summer that economic experts said was “brutal” for students looking for a summer job.
Rent or residence fees, groceries and food, transportation and entertainment or social activities were the top expenses that students faced, the CIBC poll said.
To meet these financial pressures, 78 per cent of students told CIBC they hope to work during the upcoming school year, while 53 per cent said they will take out student loans.
Despite these plans, however, 48 per cent said they feel overly dependent on their parents for financial support.
“Students across Canada are navigating significant financial challenges, from the rising cost of living, to unique student-related expenses,” said CIBC executive vice-president Frank Psoras in a statement.
“Many students are responding by finding additional sources of income and adopting effective budgeting strategies, such as creating a detailed budget and reducing non-essential spending,” Psoras added.
Students are employing different means to manage their budgets, with 55 per cent saying they are creating a budget, 36 per cent saying they are looking to redeem student discounts and 32 per cent saying they are using loyalty cards more.
Nearly half (49 per cent) said they will significantly cut back on discretionary spending and 36 per cent said they plan to stay in more.
With rents still too high for many, 40 per cent of students plan to lower living costs by moving in with family members, while 35 per cent said they will apply for scholarships.
Students are looking to cut back on other expenses too, with 24 per cent looking to buy used textbooks and 45 per cent using discount coupons.