One-third (33%) of first-year post-secondary students (37% of females and 27% of males) expect to have significant debt on graduation day, according to an RBC survey. Furthermore, 38% of students say they are deferring worrying about their debt it until after they graduate.
"Many post-secondary students are living on their own for the first time, juggling school and living expenses, all of which can be very stressful. It's not surprising that students tend to keep their worries about loans and expenses on the backburner until graduation," said Melissa Jarman, director, Student Banking, RBC.
"A budget can certainly help you stay on top of your finances and alleviate your financial stress while in school."
Jarman offers three budgeting tips to help students avoid graduating with a 'D' for debt:
Prepare a budget – A budget will help you live within your means and avoid additional, debt upon graduation. To help alleviate financial stress, set a budget for yourself and keep your spending within it. The RBC online banking tool myFinanceTracker can help you see where your money is going.
Take control – Identify all of your expenses and assess how much you're actually spending. Tools such as RBC's Student Budget Check Tool can help you manage your money. Once you understand where you are spending your money, you can look at your discretionary spending and see if there are areas where you can spend less.
Look for alternative financial options – Explore all financial options available, especially those that do not need to be repaid, such as grants, bursaries and scholarships. Then consider government loans and student bank loans. RBC awards over $250,000 in scholarships each year.
