Students need help understanding credit, budgeting

Post-secondary students and their parents wish students knew more about personal finance and financial literacy, indicates a poll by RBC.

Most teens know they should be more literate: 87% report they still have a lot to learn about managing finances; 42% wish they knew the costs of miscellaneous expenses better, and 41% wish they knew more about budgeting.

Read: Help students stretch income

Meanwhile, 59% of parents wish their children knew the importance of saving and early planning.

Students are also concerned about unexpected financial needs, the details of paying back their student loans, and the state of their finances when they graduate.

Read: Parents shouldn’t shoulder university costs, say kids

“Students were less knowledgeable about credit than their parents, but some parents didn’t fare all that much better,” says Melissa Jarman, director, Student Banking, Royal Bank of Canada.

Students want their parents’ guidance on debt and credit: 80% say they consult their parents on financial issues, from major purchases to investing.

“Many students get their first credit card when they begin post-secondary education, so this is the time to educate them on responsible credit use,” says Jarman.

Read: Tax tips for students

Staff

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