TORONTO, Aug. 12, 2015 /CNW/ - As students across the country prepare
for the return to school and classes, it's a time of high anxiety for
both students and parents. Students are concerned about more practical
issues such as finances and jobs, whereas parents think their
children's concerns rest in whether they will find happiness in their
future careers.
According to the latest 2015 RBC Student Finances Poll, students' top
causes for concern are:
-
getting a job after graduation (45 per cent)
-
making enough money to support myself (38 per cent)
-
being happy with my job (36 per cent)
Parents on the other hand believe their children are most worried about:
-
if their program will help land the type of job they will be happy with
(44 per cent)
-
being happy with their job after graduation (42 per cent)
-
getting a job after graduation (40 per cent)
More so, while both parents and students are concerned about earning
potential, far more students (82 per cent) versus parents (70 per cent)
worry whether they will earn enough money to cover living expenses and
student debt.
"Parents and students both remain focused on the future outlook, but
reality has set in for students as they worry more about job prospects
than what might make them happy," says Mandy Mail, director of Student
Banking at RBC Royal Bank. "Being aware of what students are stressed
about can help parents navigate the journey and put students on the
path to land the right job that can satisfy their financial needs as
well as fulfill them and make them happy."
Going their separate ways
As students continue to struggle for independence, the biggest
difference of opinion is the worry over how long they will live at
home. More than half of students (58 per cent) are concerned about how
much longer they will live with their parents after graduation, but
only one-third (35 per cent) of parents felt the same.
"The transition from student to adulthood comes with apprehension, but
for students, the biggest step to independence is moving out of the
house," adds Mandy. "As they worry about the cost of living, student
debt, grades and job prospects, staying at home longer than they want
weighs on them heavily too."
More pencils and books
Paying for school is top-of-mind for most students, but more so than
parents think. A large majority (73 per cent) of students say they are
concerned with having enough money to pay for post-secondary school,
but only 59 per cent of parents had this same concern. And while
parents and students agree that textbooks and clothes will be top
purchases for back-to-school, parents are underestimating all the other
"stuff" students plan to buy. Around 20 per cent of students plan to buy a
cell phone and/or electronic peripherals such as speakers and a
printer, whereas half as many (10 per cent) parents believe their child
is planning to make such purchases.
Help manage stress levels before school starts
To help manage stress before the rush of school starts, Mandy suggests
parents and students connect and consider the following tips:
-
Talk more often and make sure you're on the same page. Open communication throughout all school semesters will help to
alleviate some of the stress students and parents may feel.
-
Create a budget for today, and make a financial plan for the future. A budget is the best way to track spending and help stay in good
financial shape when you are in school. If you can, consider setting
money aside on a regular basis to help with financial success down the
road.
-
Only borrow what you need and be disciplined about debt. Whether it is using a credit card for everyday spending or taking out
a loan to offset tuition costs, learn how to manage credit now so that
you can create good borrowing habits that will pay off in years to
come.
-
Look for ways to stretch your money. If you carry a rewards credit card, check to see if you can redeem
points for gift cards and merchandise for use at school.
About RBC's financial planning advice, resources and interactive tools
RBC's Advice Centre offers advice and tools for students. Interactive tools and calculators
provide customized information covering many facets of personal
finance, including the Student Budget Calculator and the Debt Reduction Plan. With the guidance of RBC advisors who are available to chat live,
Canadians have access to free, no-obligation professional advice about
RBC products and services and personalized one-on-one service. Further
information is available at rbcadvicecentre.com. In addition, RBC's myFinanceTracker, a comprehensive online financial management tool, offers all personal
RBC online banking clients the ability, at no cost, to create a set budget and track their
spending habits. As well, RBC Virtual Visa Debit enables clients to pay for online, over the phone, or mail order
purchases with funds directly from their bank account.
About RBC Student Finances Poll 2015
The 2015 RBC Student Finances Poll was conducted by Ipsos Reid through a
national online survey of 1,003 students aged 17 to 24 and of 1,001
parents of students in post-secondary school (as of September 2015).
Data were collected from June 23 to July 7, 2015. 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 student population according to Census data. Quota
samples with weighting from the Ipsos online panel provide results that
are intended to approximate a probability sample. Unweighted,
probability samples of this size, with 100 per cent response rate,
would have an estimated margin of error of ±3 percentage points, 19
times out of 20, for each sample group. All sample surveys and polls
may be subject to other sources of error, including, but not limited
to, coverage error and measurement error.
ABOUT RBC
Royal Bank of Canada is Canada's largest bank, and one of the largest
banks in the world, based on market capitalization. We are one of North
America's leading diversified financial services companies, and provide
personal and commercial banking, wealth management, insurance, investor
services and capital markets products and services on a global basis.
We employ approximately 78,000 full- and part-time employees who serve
more than 16 million personal, business, public sector and
institutional clients through offices in Canada, the U.S. and 39 other
countries. For more information, please visit rbc.com.
RBC supports a broad range of community initiatives through donations,
sponsorships and employee volunteer activities. In 2014, we contributed
more than $111 million to causes worldwide, including donations and
community investments of more than $76 million and $35 million in
sponsorships.
SOURCE RBC
