Mom and dad, send money!

By Thanksgiving, 47% of students at college or university had already asked their parents for money to help their day-to-day finances, shows a CIBC poll.

This suggests both students and parents would benefit from taking a realistic look at the monthly expenses associated with college and university, and putting a clear budget in place.

Read: Making tuition tax credits fairer

The poll’s key findings:

• 69% of parents say they gave money to help with school or living expenses when the school year started
• 47% say their children in college or university have asked for more money since the start of the school year
• Parents say they’ve sent to their children in school is $1,246 so far this school year
• 47% of parents gave their children cash, while 25% used electronic transfers and 11% share a joint account

School expenses can impact parents’ finances

CIBC research from August 2013 shows that the cost of education is taking a toll on parent’s finances, as 60% of parents with children under 25 say the funds they have used to help their children with education costs were intended to help fund their own retirement, and 36% believe they will need to delay their retirement as a result. Today’s poll illustrates that many parents are paying bills beyond tuition and books, which can create an added strain on their monthly finances.

Read: Tax tips for students

Financial tools for students

Student Accounts: Free accounts give students the comfort of knowing that their everyday banking won’t lead to unexpected charges at the end of the month.

Spending Alerts: These services can help students stick to their budget by allowing users to set a budget limit, and be notified by phone, email or online message when they exceed their customized budget.

Mobile Banking: Students can also track their spending by using mobile banking apps on their smartphones. The apps allow clients to check their balance and see what they’ve spent so far that day in just a few seconds.

Read: Government announces Canada Summer Jobs deadline

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.