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Pay off debt or save for the future? Canadian students strike a balance
- TD Canada Trust Young Adult Money Poll reveals that students and recent graduates understand the importance of saving - - Almost 80% of Canadian students and recent graduates would save or pay off debt if they came into money - Part-time jobs are the number one source of income - Almost half of Canadian students and recent graduates get financial advice from their parents TORONTO, Nov. 17 /CNW/ - What would you do with a $10,000 windfall? If you are like the majority of Canadian students and recent graduates you would invest or save some of the new-found money (42%) or use it to pay off debt (37%), according to the recent TD Canada Trust Young Adult Money Poll. And while nearly two-thirds of current and recent students are living with debt, most act responsibly when it comes to spending and saving their money. "There is a myth that students are irresponsible when it comes to saving their money however this is simply not the case. Our findings show that nearly 80% of respondents would either save or pay off debt if they suddenly received $10,000," says Anita Steele, Senior Manager, Young Adults Marketing. "Getting finances in order and controlling spending can be quite daunting but there are many tools and resources available to help students, such as the TD Money Lounge on Facebook which has applications like Cover Your Costs to help manage expenses and living costs." Living with debt is a fact of life for many students and recent graduates. In fact, 22% of those surveyed have more than $15,000 in debt, 18% have between $6,000 and $15,000 in debt and 23% have less than $5,000 in debt. The good news is that 37% of current Canadian students and recent graduates have no debt at all. Young adults are planning for their future with more than half (53%) of students and recent graduates surveyed saving in some capacity, such as in a savings account, in GICs mutual funds or in RRSPs. The current level of debt affects the amount of money people are saving with 64% of those without debt currently saving, versus 38% of those with $15,000 or more debt setting aside funds. Despite the debt, students remain conscientious with their money. Thirty-eight per cent of those polled rely on a part-time job as their primary source of income, 21% rely on their parents and 20% rely on student loans. On a daily basis, students and recent graduates are spending the bulk of their money on groceries (45%). Entertainment and car follow at 15% and 12% of money spent respectively. Those with less than $5,000 in debt or no debt at all, are more likely to spend money on entertainment. Other poll findings: - 86% of students and recent graduates have a credit card in their name - 56% of students and recent graduates report that the total balance across all their credit cards is less than $500 - Education (26%) topped the list as the biggest financial concern followed by personal finances (25%) and affordable housing (21%) - 27% of respondents expect to save between $6,000 and $15,000 by the age of 25 - 53% expect to live on their own after graduating from university or college - 49% turn to their parents as their primary source of financial wisdom "We know a lot of students get advice and guidance on financial matters from their parents. But we also want them to know that they can come and talk to us as well," says Steele. "We want to help our customers at every stage of their financial lives, especially at the all important beginning." About the TD Canada Trust Young Adult Money Poll: The TD Canada Trust Young Adult Money Poll explored the financial situation and habits of Canadian students and recent graduates. The study was conducted using the Angus Reid Forum among English and French speaking Canadians, aged 18 to 24, who are attending an undergraduate or post-graduate program, or who graduated university or college in the past two years. The sample was based on responses from 1,222 men and women based on fieldwork conducted from October 22 to 28, 2008. About Young Adult Initiatives at TD Canada Trust TD Canada Trust offers a variety of resources for students and recent graduates such as TD Money Lounge on Facebook (www.facebook.com/tdmoneylounge). The TD Money Lounge group for university and college students discusses the financial side of student life and offers information about student products, contests, giveaways, and helpful advice. Launching later this month on the TD Money Lounge is "Hippopost," a fun way to create and mail postcards with your Facebook images. Financial products for students and recent graduates include the TD Canada Trust Value Plus Account and Student Line of Credit for undergraduates. Further information is available at www.tdcanadatrust.com/student. About TD Bank Financial Group: The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group is the seventh largest bank in North America by branches and serves approximately 17 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD Banknorth and Commerce Bank (to be known together as TD Bank); and Wholesale Banking, including TD Securities. TD Bank Financial Group also ranks among the world's leading on-line financial services firms, with more than 5.5 million on-line customers. TD Bank Financial Group had CDN$509 billion in assets as of July 31, 2008. The Toronto-Dominion Bank trades on the Toronto and New York Stock Exchanges under the symbol "TD", as well as on the Tokyo Stock Exchange.
For further information: Carolyn Abbass, Jennifer Meneses, Paradigm Public Relations, (416) 203-2223, firstname.lastname@example.org, email@example.com
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