Students that receive less than a quarter of funding from their parents feel more confident when it comes to financial decision-making. In addition, they are more likely to make and stick to a budget, says an RBC poll released this week.
The majority (64 per cent) of postsecondary students receive less than a quarter of funding from their parents. The poll found 61 per cent of students are employed in the summers, and 53 per cent rely on scholarships, bursaries and grants. The poll also found 47 per cent of students have part-time employment during the school year.
Most significant expenses
As for expenses, aside from groceries, eating out and alcohol, students whose parents fund under a quarter of their finances say gas and parking, cellphone and data, and utilities, are their most significant expenses in their budgets. For those with more parental funding, social outings and entertainment, clothing and shoes, and cellphone and data are their biggest expenses.
Be clear on expectations
Students who have received more funding from their parents throughout their degrees expect more from their parents after graduating, found the poll. "While contributing financially to your child's education is a wonderful gift, being clear on expectations from both parties is really important. Make sure you discuss the 'terms' including when financial support will end," says Laura Plant, RBC’s director, Student Banking.