It’s too bad that a financial planning class isn’t required of all university students, because a recent poll suggest that most students have a lot to learn about money.
The CIBC survey found that 51 per cent of parents helped their kids in university when they ran out of money, although 86 per cent believe they are good financial role models to their children.
But are students getting an unfair bad rap? Maybe so. In a 2015 study of over 18,000 students at 36 universities across Canada, the Canadian University Survey Consortium (CUSC) found that 92 per cent of graduating students have at least one credit card, and 77 per cent of those students regularly pay off their bill each month. The average bill for those who carry a balance on credit is $2,224.
Students surveyed said they typically use a combination of three sources to pay for their education. Sixty per cent of students had help from parents, family or spouses; 49 per cent used current jobs and 44 per cent used summer jobs to pay the bills; government loans or bursaries were used by 41 per cent of students. Other sources include scholarships and bursaries (33 per cent), and RESPs (15 per cent). “To fund their current academic year, the typical student requires just under $15,800 from all sources,” reports the CUSC.
About 59 per cent of graduating students are employed, working about 18 hours per week. Considering the whopping bills that post-secondary students face, no wonder so many have trouble sticking to a budget, so maybe having a job is a good idea. Let’s take a look at where the money goes:
Tuition
The average university tuition in Canada for the 2014/2015 school year was $5959 according to Statistics Canada. But compare fees by province and you’ll find some shocking variations. (Hint: get out of Ontario for school and save yourself a pile of cash, especially for the top four big ticket professions: pharmacy, dentistry, law, and medicine.)
Ontario: Average: $7,539. Tuition ranges from about $6000 for arts and humanities to a high of $32,289 for dentistry and $25,357 for pharmacy. Medicine came third at $22,744 and law was fourth at $14,998.
Newfoundland: Average is $2,631. All disciplines including pharmacy are $2550, except medicine, which skews the average at $6,250. Law and dentistry are not offered.
PEI: $5,857. All fields of study are $5,520 except veterinary medicine, which costs $11,665. No law, dentistry, pharmacy or medicine here.
Nova Scotia: $6,440. Dentistry students had the highest tuition in the province at $18,328, with medicine second highest at $16,547. Pharmacy was only $8,872, a bargain compared to Ontario.
New Brunswick: Average $6,324. Law is the most expensive discipline at $8,622. The other high stakes fields, medicine, dentistry, and pharmacy, aren’t available here.
Quebec: Average $2,743, which includes very low-cost CEGEP programs. Surprisingly, humanities ($3,466) are the most expensive subject, with dentistry next at $3,266, then Visual and Performing Arts & Comm. Technologies at $3,030.
Medicine ($2,909) and pharmacy ($2,395) aren’t in the top three for tuition fees.
Manitoba: Average: $3,887. In this province, dentistry tuition ($19,233) is more than double the next highest discipline, law, which cost $9,304. Medicine was third at $7,764, slightly more than pharmacy.
Saskatchewan: Average: 6,659. Dentistry ($32,960) is far higher here than any other field, with medicine ($15,530) in second place and law ($12,015) third. Pharmacy is a relative bargain at $7,543, which is less than veterinary medicine at $8,266.
Alberta: Average: $5,730. Compared with Ontario and Saskatchewan, dentistry is a relative bargain here at $20,184. Medicine is $13,410 and law is $11,281, just higher than veterinary medicine.
British Columbia: Average: $5,118. Dentistry and medical studies are tied at $16,731, with law at $9,835.
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Accommodations
The cost of residence varies considerably across the country, from a low of $2275 at the Université de Moncton to a high of $7630 at the University of Toronto and $7262 at Carleton, according to a 2013/2014 Statistics Canada survey.
The University of Toronto suggests budgeting “$7,985 to $15,000 or more for residence, depending on where you choose to live, whether you purchase a meal plan, or buy and prepare your own food.”
The University of British Columbia estimates it will cost $13,000- $15,000 for living costs, books and fees.
Not every school offers residence, and often students prefer to find their accommodations. The CUSC found that 52 per cent of graduating students live independently, most often in rented housing.
The CMHC gives the average cost of a two bedroom apartment in various cities (2014):
- St. John’s $888
- Halifax $1005
- Moncton $762
- Quebec City $775
- Montreal $739
- Ottawa $1132
- Kingston $1070
- Toronto $1251
- Hamilton $959
- Winnipeg $1016
- Regina $1079
- Calgary $1322
- Edmonton $1227
- Vancouver $1311
- Victoria $1095
Food
Meal plans range from about $2600 to $8000 for residence, with varying levels of coverage.
Transportation
“Graduating students most commonly take public transportation (42 per cent) to campus,” reports the CUSC although about one third use a vehicle.
Smart students will save time and money by living within walking distance of school. A monthly student transit pass will cost $112 in Toronto, $70 in Halifax, $103.25 in Ottawa, $99 in Calgary and $36 in Vancouver.
Textbooks
The University of Toronto website (ominously?) suggests “$1,000 and up for books and supplies,” while Memorial University in Newfoundland estimates $1500.
Because of the variations between disciplines, ask fellow students or advisors in your field for advice. You may be able to buy used books or online versions for less, and/or sell your used books at the end of the semester.
Computer
Good luck getting by without a computer, so if you don’t have one you can bring to school, you’ll need to get one, ideally something portable. Prices range from under $500 for a basic PC laptop to $1100 for the lowest priced Apple computer, an 11-inch MacBook Air, although the company does offer some discounts for students and teachers.
Social
It’s time to get creative if you’re on a budget, because you don’t want to blow your savings or student loan in September on restaurants and a bar tab.
Other Fees
At Memorial university in Newfoundland, the student union, health and dental and recreation fees will cost $521 for the year. University of Calgary charges $597.19 this year for general fees, while McGill charges $1037 for ancillary fees.
Plan ahead
48 per cent of post-grad students worry they’ll run out of money before the upcoming school year is finished, and that they won’t be able to pay back their debt once they have graduated.
Use an online calculator to plan your budget now and get advice on how to stick with it. Here are a few that might help:
CIBC Student Budget Calculator
Financial Consumer Agency of Canada
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By the numbers:
- 36 per cent expect to owe $25,000 or more when they graduate
- 48 per cent of students are most worried about covering their upcoming school year's tuition and living expenses or repaying their student and school-related debt
- 19 per cent do not expect to be able to support themselves financially upon graduation
- Polled students expect their parents will cover 22 per cent of tuition and school costs, down sharply from 33 per cent in a similar poll last year — CIBC
Sources:
CIBC: From July 27-29, 2015, an online survey was conducted among 992 randomly selected post-secondary students who are Angus Reid Forum panelists. The margin of error - which measures sampling variability - is +/- 3.11 per cent, 19 times out of 20.
CUSC: 2015 survey involved 36 universities and over 18,000 graduating university students from across Canada. Graduating students tend to be female (60%), about 24 years old, single (64%), and a Canadian citizen (89%).
Statistics Canada: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/educ50a-eng.htm