Most students turn to multiple income sources to cope
Canadian post-secondary students are entering the new academic year under significant financial strain as the rising cost of living and a challenging job market weigh on their ability to manage expenses, according to a new CIBC poll.
Nearly half of students (48%) expressed uncertainty about covering all their expenses this fall. The top costs include rent or residence fees, groceries, transportation, and social activities. To meet these needs, 78% plan to work during the school year, and 53% will rely on student loans. Nearly half also report feeling overly dependent on their parents for financial support.
Students are employing a range of strategies to manage their budgets. According to the poll, 55% are creating budgets, 45% are buying cheaper brands or using coupons, and 35% are applying for scholarships. Others are cutting discretionary expenses, using loyalty programs, or living with family to reduce costs.
Frank Psoras, executive vice president of personal banking products and payments at CIBC, said students are “navigating significant financial challenges” and are turning to multiple sources of income and budgeting approaches to manage their money.
Digital tools are also playing a larger role, with 92% of students reporting comfort with online or mobile banking and more than half relying on mobile apps to track spending.
The financial stress extends beyond the classroom. A separate report from the Canadian Alliance of Student Associations (CASA), published by Education News Canada, found that the cost of post-secondary education remains the biggest barrier to enrollment and the most significant challenge for those currently enrolled.
The report, The Value of Post-Secondary Education in Canada, revealed that 89% of working-age Canadians believe investing in post-secondary education is vital for the country’s long-term economic stability and competitiveness. It also found strong support — 83% — for increasing federal funding to expand access and 79% for using public funds to assist low-income students.
The CASA report noted that while graduates generally report higher quality of life and greater confidence in navigating the labor market, many younger Canadians are delaying major life decisions such as homeownership or starting a family due to student debt. Only 31% of working-age Canadians said they graduated without debt, and many reported that debt limited their career options or ability to start a business.
Both the CIBC poll and CASA’s findings suggest that while students and graduates recognize the value of post-secondary education, rising costs and limited financial support are creating long-term pressures.
