Canadian students struggling to manage expenses amidst economic uncertainty and rising cost of living

TORONTO , Aug. 21, 2025 /CNW/ - A new CIBC poll reveals that amidst the rising cost of living, a tough student job market, and general economic uncertainty, Canadian post-secondary students are struggling to make ends meet as they head back to class this fall, with nearly half (48%) feeling uncertain about their ability to cover all expenses.

Managing expenses and financial pressures

Canadian students are balancing a range of rising expenses, with top costs including rent or residence fees, groceries and food, transportation, and entertainment or social activities. To help meet these financial demands, students are leveraging multiple funding sources – 78% hope to work during the school year and 53% will take out student loans. Despite these plans, nearly half (48%) say they feel overly dependent on their parents for financial support.

"Students across Canada are navigating significant financial challenges, from the rising cost of living, to unique student-related expenses," said Frank Psoras, Executive Vice-President, Personal Banking Products and Payments, CIBC. "Many students are responding by finding additional sources of income and adopting effective budgeting strategies, such as creating a detailed budget and reducing non-essential spending."

Key budget management strategies students are adopting include:

1. Spending cuts: Creating a budget (55%), redeeming student discounts (36%), using loyalty cards (32%)
2. Reducing discretionary spending: Cutting back on non-essentials (49%), staying in more (36%)
3. Lowering living costs: Buying cheaper brands or using coupons (45%), living with family (40%)
4. Reducing education costs: Applying for scholarships (35%), buying used textbooks (24%)

Students are also focused on building their financial skills, with 65% anticipating they will have a financial plan for the year and 67% believing their university or college should offer personal finance courses.

Embracing digital solutions

As students navigate these challenges, digital banking tools have become a cornerstone of their financial routines. The survey found that 92% of students are comfortable using digital or mobile banking solutions, and more than half rely on mobile or budgeting apps as their primary tools for managing money.

"Today's students have grown up with technology and expect seamless, intuitive banking experiences that fit their busy lives," added Psoras. "Students have unique needs when it comes to their banking and we are committed to helping them navigate this important transition with confidence by providing the advice, relevant offers and support they need to reach their goals."

Supporting students' financial journeys

As students and their families prepare for the back-to-school season, CIBC provides the support and resources necessary to pursue and achieve their ambitions.

The CIBC Best Student Life Bundle is a best in market offering designed to address the unique needs of students with a no-fee Smart Start or Smart for Student chequing account to help manage daily expenses, an eAdvantage Savings account, and a choice of student credit card to help build a credit history – available in-person at banking centres or through one digital application, serving both domestic and international students. Through partnerships with organizations like Skip and SPC, CIBC provides access to exclusive offers and discounts helping students with the savings and support they need to succeed throughout their academic journeys and into the future.

CIBC Smart Planner is an intuitive tool that gives students timely insights into their spending habits to help them track and understand their finances better and stay on top of their goals. 

For more information about CIBC's student banking solutions and resources, visit the CIBC Student Hub.

Disclaimer

The findings are from an Ipsos poll conducted between July 8th and July 21st, 2025, on behalf of CIBC. For this survey, a sample of 500 Canadians aged 18-25 years old planning to be in full time or part time post-secondary schooling in September 2025 were interviewed online. Sample was sourced from the Ipsos panel. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±5.0 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population.

About CIBC

CIBC is a leading North American financial institution with 14 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre

SOURCE CIBC