Survey Reveals 92% of Ontario Students Face Financial Stress

A recent survey conducted by TD Bank reveals that an overwhelming 92% of post-secondary students in Ontario are experiencing financial stress as they prepare for the upcoming school year. This alarming figure highlights the growing concerns among students regarding their financial well-being amid rising living costs and tuition fees.

According to Joe Moghaizel, vice-president of everyday advice journey at TD, the current financial pressures faced by students are significantly greater than those experienced by previous generations. He attributes this to various factors, including increased unemployment rates, escalating costs of living, and higher tuition fees. “The survey was clear that our students are experiencing a lot of stress, which is a bit unique from previous generations,” Moghaizel stated.

The survey further indicates that while 78% of parents believe their children have encountered financial stress in the past three months, the actual figure stands at a striking 92%. Moghaizel noted this disconnect, emphasizing that many parents are unaware of the extent of their children’s financial challenges. “Parents were not aware of the amount of stress that the students are feeling,” he said.

Financial Pressures and Tuition Costs

This financial strain is particularly pronounced in Ontario, where 35% of students reported stress specifically related to tuition costs. In comparison, the national average across other provinces is 26%. The Canadian government estimates that it will take nearly 10 years for the average student to repay their student loans, with total student loan debt in Canada surpassing $23.5 billion in 2022.

Moghaizel reflected on the rising financial challenges, saying, “You go back to over two decades ago, when I was in school, the financial pressures that students deal with now are significantly higher because tuition is a lot more expensive and the cost of living is more expensive.” He pointed out that inflation has further exacerbated these issues, leaving many students with a sense of financial instability.

The survey also revealed that 36% of respondents cited social spending as a major source of stress. Moghaizel highlighted the impact of social media, where students often feel pressured to keep up with their peers’ spending habits. “They all feel the pressure to spend and keep up, which… creates a bit of pressure,” he explained.

Building Financial Literacy

Despite these challenges, Moghaizel remains optimistic about the potential for students to develop stronger financial habits. He encourages students to differentiate between their needs and wants, emphasizing the importance of prioritizing essential expenses. By tracking their spending, students can gain valuable insights into their financial behaviors.

“We want to make sure that we’re equipping students with the right understanding of financial knowledge for the products and services,” Moghaizel added. This approach aims to empower students to make informed decisions as they navigate their financial landscapes.

As the new academic year approaches, the findings of this survey serve as a critical reminder of the financial pressures facing post-secondary students in Ontario. Acknowledging these challenges may help foster a more supportive environment for students as they seek to manage their finances effectively.