Recent post-secondary graduates are anxious about their new financial reality, due to a competitive job market, lower-than-anticipated income and higher-than-expected costs, says a TD survey released May 15.
The top financial pressures facing graduates are the desire to be financially independent, to save enough to live on their own, and repaying student debt. Sixty per cent of respondents said they feel guilty when spending their money on things they want versus other financial commitments, such as paying down debt.
Financial pressure and guilt
"Today's graduates are ambitious and motivated, but the realities of the job market can lead to feelings of financial pressure and guilt when they're unable to afford many of the things they want," says Sue MacDonald, associate vice president of Everyday Banking Products at TD Bank Group. "Setting realistic and manageable goals and seeking advice from a trusted source such as a financial advisor is key to tackling new financial realities and starting off on the right financial foot."
Forty-one per cent of respondents said it took up to one year to find a job after graduation. Additionally, once employed, 41 per cent were earning less than they had expected, and many had not considered expenses such as transportation or commuting, meals, and buying clothes appropriate for work. Forty-seven per cent of respondents said they felt anxious or overwhelmed about having to manage their finances themselves.