College is costly and kids expenses are draining their parents’ bank accounts. According to a new poll by banking institution CIBC, 47 percent of students attending college have already asked their parents for more money to keep up with their day-to-day costs.
The poll also found…
- 69 percent of parents say they gave money to help with school or living expenses when the school year started in September
- 47 percent say their children in college or university have asked for more money since the start of the school year
- The average amount parents say they have sent to their children in school is $1,246 so far this school year
- Cash was the most common method parents used to give money to their children (47 per cent), followed by electronic transfers (25 per cent) and sharing a joint account (11 per cent)
“Making the month-to-month finances work is important to ensure that both students and parents keep their finances on track,” says Barry Gollom, a CIBC vice president. “Some of the keys for students are having a clear budget in place, and staying on top of spending by using tools like online or mobile banking to keep a close eye on monthly expenses.”
Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada, knows all about budgeting.
“We try to instill the importance of budgeting and better money management skills to all our clients,” Schwartz says. “If you don’t properly budget then you have no idea where all your money is being spent, and that can lead to financial ruin – for you and your college-age children.”