Financial stress is hitting grades, sleep, and mental health as students bypass verification
Nine in 10 Canadian post-secondary students have felt financial stress in the past three months, and nearly half are now taking money guidance from artificial intelligence (AI) tools and social media feeds.
A TD survey released for the back-to-school season found 45 percent of students have used those channels for financial advice or information, while 90 percent have acted on what they received and only 32 percent regularly verify it first.
Trust in the advice runs ahead of the checking, according to TD, with 56 percent of students saying they trust the financial guidance they get from social media and AI tools.
Hiren Amin, market technician and educator at TD Direct Investing, said students turn to AI and social media for financial information because those tools are "readily available and easy to access," in the bank's survey release.
Amin said financial decisions are personal, and advice that suits one person may not suit another, so verifying information and consulting trusted sources can help students make more informed choices.
Affording essentials such as groceries and housing topped the list of stress drivers at 53 percent followed by budgeting difficulties and social spending concerns at 41 percent, and managing debt including credit card balances and student loan repayment at 35 percent.
Twenty percent of students said money causes them more stress than school does.
The strain extends into academic performance, with 76 percent of students reporting a negative impact on their wellbeing and studies.
Respondents pointed to mental health at 42 percent, ability to focus on studies at 31 percent, grades at 29 percent, and sleep at 27 percent.
Nearly one in four students, or 23 percent, said they do not know how to build and maintain a personal budget, per the TD findings.
Joe Moghaizel, vice president of everyday advice journey at TD, said students face "growing financial pressures," from everyday costs to balancing school, work, and social commitments.
The money habits formed during post-secondary years can help students manage current realities and shape their decisions long after graduation, Moghaizel said.
TD reported that 89 percent of students want to learn more about investing, covering the basics, different strategies, and options for smaller budgets, while 53 percent are not currently invested.
Among those on the sidelines, 71 percent cited a lack of knowledge and 43 percent cited anxiety.
The 47 percent who do invest favour Tax-Free Savings Accounts (TFSAs) as their registered account of choice at 59 percent, according to the survey.
Stocks lead the vehicles used at 33 percent, ahead of exchange-traded funds (ETFs) at 28 percent and mutual funds at 22 percent.
Amin said students "aren't lacking interest in investing," but confidence in where to start.
Investing "doesn't have to be all-or-nothing," Amin said, and small steps now can help students build healthy habits toward their goals.
