As the holiday break approaches, almost half of college and university students have already asked their parents for more money to help pay the bills
TORONTO, Dec. 13, 2013 /CNW/ - A CIBC (TSX: CM) (NYSE: CM) poll by Leger conducted just after the Thanksgiving long weekend showed that 47 per cent of students attending college or university had already asked their parents for money to help keep their day-to-day finances afloat this school year. With students getting set to head home again for the holidays, many may also be asking for some extra cash to help them in the New Year.
These findings suggest that both students and parents would benefit from taking a realistic look at the monthly expenses associated with college and university, and having a clear budget in place.
Key findings of the poll include:
- 69 per cent of parents say they gave money to help with school or living expenses when the school year started in September
- 47 per cent say their children in college or university have asked for more money since the start of the school year
- The average amount parents say they have sent to their children in school is $1,246 so far this school year
- Cash was the most common method parents used to give money to their children (47 per cent), followed by electronic transfers (25 per cent) and sharing a joint account (11 per cent)
"Budgeting for school can be challenging, and there is a gap for some students which has left them asking for more money to help pay for day-to-day expenses this school year," said Barry Gollom, Vice President of Consumer Deposits for CIBC. "This trend affects both students and parents, as parents are often sending funds to cover living expenses that they intended to use in other areas of their financial plan, such as saving for retirement."
School Expenses can impact Parents' Finances
Past CIBC research from August 2013 shows that the costs of education are taking a toll on parent's finances. 60 per cent of parents with children under 25 say the funds they have used to help their children with education costs were intended to help fund their own retirement, and 36 per cent believe they will need to delay their retirement as a result. Today's poll illustrates that many parents are paying bills beyond tuition and books, which can create an added strain on their monthly finances.
"Making the month-to-month finances work is important to ensure that both students and parents keep their finances on track," added Mr. Gollom. "Some of the keys for students are having a clear budget in place, and staying on top of spending by using tools like online or mobile banking to keep a close eye on monthly expenses."
Mr. Gollom added that a good conversation between parents and students about spending expectations is important to help with the budget for the entire family.
"Many parents are committed to helping their children through college or university, and having a good conversation about monthly budgets and spending is important to ensuring that the family's finances are in good shape," said Mr. Gollom.
Advice for Students to help manage Expenses
Students can benefit from:
Free Banking --- CIBC offers a bank account for students with free unlimited banking transaction fees and no monthly fees. CIBC Advantage® for Students gives students the comfort of knowing that their everyday banking won't lead to unexpected charges at the end of the month. Plus, students can now set the expiry of their student benefits to their graduation date rather than annually.
Spending Alerts --- Services such as CIBC CreditSmart® can help students stick to their budget. Free to CIBC credit card holders, CIBC CreditSmart® allows clients to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.
Mobile Banking --- Students can also track their spending by using the CIBC Mobile Banking App on their smartphone, allowing clients to check their balance and see what they've spent so far that day in just a few seconds.
KEY POLL FINDINGS
Percentage of Canadian parents with children in college or university who gave their children money at the start of the school year, by region:
Percentage of Canadian parents with children in college or university whose children have asked for more money since the beginning of the school year:
Among parents who have given money to their children, average amount they have given to their children in college or university so far this school year:
Results are based on a CIBC poll conducted online by Leger, which surveyed 501 Canadian parents with children currently enrolled in college or university. 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 October 17 and 22, 2013.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.