Back-to-school season is bringing more than new classes, packed schedules and campus routines. A new TD survey reveals many Canadian post-secondary students are heading into the school year feeling squeezed by everyday costs, distracted by money worries and looking for practical ways to feel more in control. The findings also highlight how many students are turning to AI and social media for financial guidance, often without verifying the information before acting on it.
Key findings from this TD survey:
76% of post-secondary students say financial stress has had a negative impact on their wellbeing and academic performance
20% say they're more stressed about money than school
23% of students don't know how to build and maintain a budget
45% of students have used AI tools or social media for financial advice or information
90% have acted on the advice they received, but only 32% regularly verify it before taking action.
89% of students want to learn more about investing, from the basics to strategies and low-budget options
Financial stress is taking a toll on student wellbeing and academic success
Financial concerns have become a defining part of the student experience for many young Canadians, extending beyond tuition and textbooks into everyday spending decisions, housing costs and social activities, said TD.
The survey found almost nine-in-10 students (89%) have experienced financial stress in the last three months, with the top drivers including:
Affording essentials like groceries and housing (53%)
Budgeting difficulties and social spending concerns (41%)
Managing debt, including credit card balances and repaying student loans (35%)
Compounding these challenges is a significant gap in financial literacy, with nearly 1-in-4 students (23%) admitting they lack basic budgeting skills.
"Students today are facing growing financial pressures, from rising everyday costs to the challenge of balancing school, work and social commitments," said Joe Moghaizel, Vice President, Everyday Advice Journey at TD. "When so many students say they struggle to create and stick to a budget, it highlights an important opportunity to build financial confidence early. The money habits students develop during their post-secondary years can help them manage today's realities and lay the foundation for stronger financial decisions long after graduation."
Money anxiety isn't just impacting students' wallets. It's also shaping how they learn, feel and show up each day. TD said more than three-quarters (76%) of students polled say financial stress has had a negative impact on their wellbeing and academic performance, including:
Mental health (42%)
Ability to focus on studies (31%)
Grades (29%)
Sleep (27%)
More students are using AI for financial advice, but many don't verify the information
With financial questions increasingly being answered online, TD said many students polled are relying on AI tools and social media for guidance. However, many are acting on advice without confirming its accuracy or source:
45% of students have used AI tools or social media for financial advice or information
90% have acted on the advice they received, but only 32% regularly verify it before taking action.
56% of students say they trust the financial advice they receive from social media and AI tools
"It's not surprising that students are turning to AI and social media for financial information because those tools are readily available and easy to access," said Hiren Amin, Market Technician and Educator, TD Direct Investing. "But financial decisions are personal and advice that's right for one person may not be right for another. Taking the time to verify information, consult trusted sources and seek guidance can help students make more informed choices and avoid costly mistakes."
Students want to learn more about investing, but barriers remain
While interest in investing is strong, many students are still sitting on the sidelines. TD said more than half (53%) of students aren't currently investing, with a lack of knowledge (71%) and anxiety (43%) emerging as the top barriers.
Among the 47% of students who do invest:
TFSAs rank as the top registered investment account (59%)
Stocks (33%), ETFs (28%) and mutual funds (22%) are the most popular investment vehicles
At the same time, students have a strong desire to learn: 89% want to know more about investing, from the basics to different strategies and options for investing with a smaller budget, said the survey.
"Students aren't lacking interest in investing; they're lacking confidence in where to start," added Amin. "For many young Canadians, the first step is the hardest. Investing doesn't have to be all-or-nothing. Even small steps today can help students build confidence, develop healthy financial habits and make progress toward their future goals."
Learn more about how TD can support students as they navigate key financial decisions: https://www.td.com/ca/en/personal-banking/solutions/student-banking
