While two-thirds are working this summer most will make less than $5,000; 1 in 5 students can't find a summer job
TORONTO, Aug. 5, 2014 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll conducted by Leger finds that while most Canadian students are working this summer the majority won't make enough money to pay their college or university costs. The poll found that:
- 65 per cent of college or university students currently have a paying summer job, while 20 per cent have been looking, but unable to find one
- The majority of students (53 per cent) who are working this summer expect to earn between $1,001 and $5,000, with about one quarter (26 per cent) expecting to earn between $5,001 and $10,000
- The top item that students who are working this summer will be spending their earnings on is school, with 31 per cent on average earmarked for tuition or school expenses
- 73 per cent of students say they will need to work during the upcoming year to support their expenses for school
"The reality is that many students rely on their summer earnings to help pay for their college and university education," says Christina Kramer, Executive Vice President, Retail and Business Banking, CIBC. "Given the cost of post-secondary education, as well as all the other expenses students have, they will need to watch their spending carefully so they can stretch those summer dollars as far as possible."
Summer earnings may not be enough
The poll found that among students working this summer, nearly half (45 per cent) are making $11.00 per hour or less, and 60 per cent are working part-time hours. As a result, most college and university students (73 per cent) will also need to work during the school year to support their education expenses. This suggests that many students are struggling to cover their school bills with summer employment alone.
Ms. Kramer notes that it is critical these students build and stick to a realistic budget while working in the summer to make it easier to manage expenses once back at school. "It's never too early to get sound financial advice. Sitting down with an advisor in the summer can go a long way to understanding what the real costs are going to be and setting a plan to best manage their finances throughout the year."
Advice for students to help manage spending
- Create a Budget - Having a plan in place before school starts can help you make the most of your resources. Talk to an advisor or use the CIBC online Budget Calculator to get a clear picture of all your expenses, and how much you have to spend.
- Stick to your plan - Once you have a plan in place, stick to it. If you fall off track, get back to your budget as soon as possible to keep your expenses in check.
- Track your spending - Use the CIBC Mobile Banking App to see account transactions and balances in real time. Services such as CIBC CreditSmart® can also help students stick to their budget, by allowing you to set a budget limit on each spending category on your credit card, and be notified by phone, email or online message when you exceed your customized budget.
- Student Banking Offer - CIBC offers a bank account for students with free unlimited banking transaction fees and no monthly fees. CIBC Advantage® for Students gives you the comfort of knowing that your everyday banking won't lead to unexpected charges at the end of the month.
KEY POLL FINDINGS - NATIONAL
Percentage of college or university students who currently have summer jobs:
|Have a paying job||65%|
|Have not been able to find a job||20%|
|Not working this summer||10%|
How much college or university students expect to earn over the course of the summer:
|$1,000 or less||10%|
|Between $1,001 and $5,000||53%|
|Between $5,001 and $10,000||26%|
|Between $10,001 and $15,000||7%|
|More than $15,000||4%|
How college or university students expect to proportionately spend the money they will earn this summer:
|Saving for future||19%|
Results are based on a CIBC poll conducted online by Leger, which surveyed 500 Canadian university or college students. The associated margin of error for a probabilistic sample of the same size is +/-4.38%, 19 times out of 20. Polling was conducted between July 11 and 17, 2014.
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Wholesale Banking - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.