Education
Local college students the focus of RDC study on student debt and financial wellness.
Student Debt & Financial Wellness
By Jason Engel and Doug MacDormand
A recent poll completed by Ipsos for BDO Canada showed that over three quarters of post-secondary students regret the amount of debt they accumulate while in school. There is certainly a lot of discussion about the financial burden facing students in post-secondary education, and how financially literate and financially well students are. With this in mind a group of students at Red Deer College completed a study on student debt and financial wellness.
With debt a concern amongst post-secondary students, it is not surprising to find that the largest portion of their education funding (33%) comes from student loans. The second largest (23%) comes from parents or family, followed by work (19%). With debt loads continuing to rise amongst students, this is a source of considerable concern. Just over half of students reported using student loans. Of those, over 40% expect to have a student debt load of over $30,000 upon graduation. 70% reported they expect over $20,000 in debt. A $30,000 student debt would equate to a monthly payment of roughly $375 over ten years, depending upon the interest rate. Statistics Canada reports that the average student debt in Canada is $26,000, so these expectations would seem to accurately reflect reality.
Where funding comes from: 33% student loans 23% parents / family 19% working
The vast majority (81%) have a credit card. 59% pay it in full every month, which is slightly higher than the overall population. It is encouraging that students are improving on their parents’ record of financial management. Of those that have a balance, they tend to be lower, with over 80% having a balance under $2,500. This would be lower than the general population, though this would likely be restricted by the limits that lenders would allow for students. Students feel pretty good about their savings habits and credit card management. Just over half reported that they are good or very good at saving for the future. Two-thirds reported they are good or very good at managing their credit card.
81% of students have a credit card. 59% of cc holders pay entire balance every month.
Not surprisingly, the vast majority of students work, with only just under one quarter (24%) reporting that they do not. Just over one half (52%) work part time. When it comes to transportation, the vast majority (76%) drive to school and work. The largest segment (41%) lives with parents or family, while the next largest rent (34%).
Other financial factors: 52% of RDC students have a part time job. 76% drive to school. 41% live at home. 34% rent.
For financial advice, students tend to go to family first, rely on themselves second and the internet third. This has interesting implications for financial advisors, in particular in light of recent developments around robo advisors.
The Donald School of Business, Red Deer College strives to bring practical, real world learning experiences to the classroom. Every year business degree students complete statistical studies on various topics. These studies are completed for a client, such as a local business or non-profit organization. This year, one group chose as their topic the financial wellness of students.
The students that completed the study are Alexander Abuzidan, Malika Khanjer, Jameica Miller, Amanda Tuccaro, Sangita Pandey and Morgan Vandenhoven. 200 Red Deer College students were surveyed during March of 2018. These survey findings are accurate with a 7% margin of error, 19 times in 20.
Red Deer College is a comprehensive community college serving learners in central Alberta with a variety of certificates, diplomas, collaborative degrees, trades, and continuing education. The Alberta government recently announced that RDC will be pursuing university status. Jason Engel and Doug MacDormand are instructors in the Donald School of Business, Red Deer College.
Just when we thought our smiles couldn’t get any bigger – they did! And we have the Red Deer community to thank for their overwhelming support.
We are so excited to share the total from the Tim Hortons Smile Cookie Campaign this past spring…and it’s very impressive. In fact, it’s an all-time record, and we couldn’t be more grateful.
Over the long-week campaign held April 28-May 4, Red Deerians indulged in a lot of cookies – $80,773 worth! These funds will go directly to helping struggling readers become readers of potential through Reading College, a project of The Foundation for Red Deer Public Schools.
Reading College, held each July, provides students with identified reading gaps an incredible summer experience that builds their skills, confidence, and love for reading. Students leave the program with stronger reading and writing abilities, and a solid foundation for success in school and life. Now in its 14th year, 1,000 students have graduated from Reading College.
“We continue to be amazed by the generosity of our community and the partnership with Tim Hortons,” said Kristine Plastow, Board Chair for The Foundation for Red Deer Public Schools. “These dollars directly impact kids who need extra support to become confident readers. The difference this program makes is life-changing.”
Tanya Doucette, Tim Hortons Restaurant Owner in Red Deer, said it’s incredible to see what can happen when a community comes together. The simple act of purchasing a cookie by so many amazing guests, makes a huge difference for young students right here in Red Deer.
“This record-breaking year shows how much our guests care. We are so pleased to support Reading College and help give students the tools they need to thrive,” she said.
When you meet Brayden Chenier, a Grade 8 student at GH Dawe School, it’s clear why he’s been chosen to represent youth across Alberta. Brayden is the proud recipient of the Integrated School Support Program Provincial (ISSP) Chief Youth Courage Award, presented by the Calgary Police Youth Foundation, in recognition of his resilience, leadership and commitment to his community.
The award celebrates students who demonstrate courage and dedication to becoming a responsible and caring citizen, especially within a diverse school and community, and was presented earlier this spring at the Calgary Police Awards Gala. As part of the honour, Brayden will now serve as a youth ambassador, helping to raise awareness about child and youth crime prevention, education, and intervention programs across the province.
“It’s pretty surreal that I will be all over the province for a year,” said Brayden. “I am looking forward to helping out in the community.”
Brayden has been part of the ISSP program through GH Dawe School since 2023 and has benefited greatly from the support offered.
With the support of the mental health professional, Brayden has been able to successfully navigate a variety of challenges in his life including coming to terms with his disability and navigating a tragic loss in his life.
Born with clubfoot, Brayden has never let his physical disability stand in his way. He is an avid athlete in a number of sports including hockey, basketball, golf, track, volleyball and soccer. His goal is working towards becoming an athlete in the Paralympics.
Brayden was nominated by GH Dawe School Counsellor Amy Johansson, who described him as a compassionate, kind, hardworking, and honest person who is driven and motivated to be his very best at all that he attempts.
She added that within the GH Dawe School community, Brayden is a highly respected citizen by all students and staff. “He is highly committed to sports connected to our school, as well as sports outside of our school community. Brayden works diligently at his academics. And is so very helpful and caring, always. Brayden works to overcome a list of things that he will not allow to hold him back.”
GH Dawe School is part of Alberta’s Integrated School Support Program – a child wellness initiative aimed at improving academic performance and the overall well-being of students. The program supports schools like GH Dawe with services to meet the diverse needs of students and families.
As he takes on his role as a provincial ambassador, Brayden continues to be a role model for his peers and a reminder of the power of perseverance and community support.
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