Higher education is a financial nightmare

Almost one-third (30%) of post-grad students accumulate more debt than expected and 40% find it difficult to make minimum repayments on student loans in the first two years after graduating, says a TD Canada Trust poll.

Read: Millenials invest early, think long term

With loan repayments on their backs, these students are postponing major life steps like buying their first homes (40%), getting married (23%), starting a family (36%), and even moving out of their parents’ houses (18%).

Read: Financial tips for 30-year-old clients

Shahz Beig, associate vice president, TD Canada Trust, and a recent post-grad himself offers tips to students considering pursuing a Master’s:

• Start saving early and continue to do so, preferably in a tax efficient account like a TFSA;
• Create a budget and stick to it, rigorously monitoring daily cash flow; and
• Create a long term financial plan. Make sure you keep track of the interest rate at which you’re borrowing, and have a plan to pay it back.

Also read:

Gen Y struggles to save

When carrying debt makes sense

U.S. student loans more profitable than Apple

Staff

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