Posthaste: Students turn to 'mental math' for their finances

financialpost.com:

With the start to the upcoming school year about a month away, many university students might be looking at how to make their summer savings last the year.

A recent survey from CIBC found that 95 per cent of the Canadian students said managing their expenses is important, but only 44 per cent are confident in their financial literacy.

Additionally, 63 per cent of respondents are using “mental math” to manage their finances.

In other words, most Canadian students are keeping track of their finances in their head, instead of writing down expenses or creating a budget.

“At such a transitional time with new and unexpected costs, it’s so important that students are aware of the financial resources available to them which will help them build confidence, develop lifelong financial habits and contribute to work-life balance,” Michael Clabby, an executive vice-president at CIBC, said in a news release.

“Budgeting apps and working with an adviser can help make their academic ambitions real and also set them up for success upon graduation as they set new goals.”

When looking at spending, more than half the students plan to travel, while nearly a quarter say technology and entertainment are their biggest splurges.

With housing and rent climbing around the country, student finances are stretched thinner than ever.

According to Statistics Canada, the average undergraduate tuition in Canada reached $7,076 for the 2023-2024 school year, an increase of more than $500 since 2020.

Canadian graduates meanwhile  paid an average of $7,573 and international undergraduate students paid $38,081 in average tuition for the year.

Foreign undergraduate tuition has climbed more than $8,000 since 2020.

This also comes at a time when housing costs are