Financial Freedom and Responsibility for Young Adults

As young adults starting post-secondary education this fall, students are navigating a world of newfound freedom, accompanied by significant financial responsibilities. Certified financial planner Shannon Lee Simmons highlights the importance of developing good financial habits early on, including applying for credit cards, opening chequing accounts, and managing day-to-day expenses. With financial stakes being high, experts emphasize the need for a sustainable spending plan, analyzing income and expenses, and making informed decisions about borrowing.

Key Takeaways:

• More than two-thirds of students anticipate graduating with debt, according to a 2024 Canadian Alliance of Student Associations survey.
• The annual cost of living for students averages $28,731.60, as per the same survey.
• Students should establish a 12-month financial plan that includes income streams and expenses, and aim to live within their means.
• It's essential to understand the terms of student loans, including the interest rate and repayment schedule.
• A sustainable spending plan involves analyzing income and expenses, brainstorming ways to eliminate deficits, and committing to change.
• Daily check-ins can help young adults track their spending and stay on top of their finances.

Statistics:

• 71.3% of students anticipate graduating with debt, according to the Canadian Alliance of Student Associations (2024) [1].
• The annual cost of living for students averages $28,731.60, as reported by the Canadian Alliance of Student Associations (2024) [1].
• A 12-month financial plan can help students manage their finances effectively and make informed decisions about borrowing.

Sources:

• 2024 Canadian Alliance of Student Associations survey
• Shannon Lee Simmons, certified financial planner and founder of New School of Finance
• Bruce Sellery, CEO of non-profit credit counselling agency Credit Canada
• Stacy Yanchuk Oleksy, CEO of Money Mentors
• The Canadian Press