Most University Students Budget for the School Year, Yet Money is Still Tight

Toronto, ON - As post-secondary students make their way back to campus for a new year of academic challenges, they are also getting ready for the financial challenges of the year ahead. In fact, eight in ten (79%) plan on budgeting their spending and most (73%) say they stick to their budgets. Nonetheless, many will be unable to stick their budgets, and nearly half (45%) of those who don't say it's because unexpected expenses derailed their financial plan. This is according to RBC's Student Finance Opinion Poll conducted by Ipsos-Reid.

Furthermore, three quarters (76%) report that they work part-time, with almost half (49%) citing the need to pay bills as the reason.

Looking at where their money went during the last school year, current students said school-related expenses - including tuition, books, and other academic fees - accounted for 36% of their total spending while in school. Food (17%) and housing (19%) made up another 36% of their spending.

Yet the poll, which surveyed both current students and recent grads, also found that even though many students are working and budgeting, six in ten (60%) say that money was tight at some point during the school year, including over a third (35%) who say that money was tight all year round.

When asked how they got by when money was tight, more than half of those struggling with their finances said they spent less money on incidentals (61%) or on food (56%). Nearly a quarter (23%) did not buy all of the books required for their classes, and 12% fell behind on tuition payments.

When asked how they manage their finances, nearly half of students (48%) say they try to figure things out on their own, while fewer (39%) turn to parents or other relatives for some help. Just 13% say they rely primarily on help from parents and relatives.

When it comes to debt, less than half (44%) of students who are currently attending college or university plan to graduate debt free. Notably, this was very close to the reality reported by recent graduates, with 46% saying they graduated debt free. Fifty-four percent said that they graduated with debt, even though 84% say looking back it is important to graduate debt-free.

These are some of the findings of an RBC poll conducted by Ipsos Reid between August 6 and August 11, 2008. This online survey of 1,167 Canadians between the ages of 18 and 35 who are students (592) or recent students within the past three years (575) of a post-secondary educational institution, was conducted via the Ipsos I-Say Online Panel, Ipsos Reid's national online panel. The results are based on a sample where quota sampling and weighting are employed to balance demographics and ensure that the sample's composition reflects that of the actual Canadian population according to Census data. With a representative sample of this size, the results are considered accurate to within 1773 percentage points, 19 times out of 20.

For more information on this news release, please contact:
Sean Simpson
Research Manager
Ipsos Reid
Public Affairs
(416) 572-4474
[email protected]

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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