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.
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.
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%).
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.
Alberta
Province investing in support for financial literacy in schools
Financial literacy prepares students for their futures
Students across Alberta will build the fundamental life skills they need to grow into adulthood through support for financial literacy programming.
Saving, budgeting, investing and the ability to make wise financial decisions are fundamental life skills Alberta’s youth need to develop as they grow into adulthood. Alberta’s government is ensuring that students have every opportunity to develop these fundamental life skills by integrating financial literacy into the K-12 curriculum and providing grant funding to three Canadian organizations to offer dedicated financial learning resources for students and teachers.
“We are proud to support financial literacy programming for students. Our on-going support for financial literacy education will help young Albertans navigate their futures with confidence by helping them build the fundamental life skills they need to prosper and secure their futures in today’s fast-moving world.”
In May 2022, Alberta’s government invested $5 million over three years into financial literacy programming to ensure students have the financial knowledge they need to thrive in life. Enriched Academy receives $900,000 per year and the Canadian Foundation for Economic Education receives $500,000 per year to provide students in grades 5 to 12 with financial literacy programming, aligned with the curriculum, to improve their financial knowledge. In addition, Junior Achievement receives $250,000 per year to provide hands-on, experiential financial literacy, work readiness and entrepreneurship education to students in kindergarten to Grade 6.
“Our support for financial literacy programming will set Alberta’s youth up for success. This programming will ensure that Alberta’s youth develop the fundamental life skills they need to manage their personal finances, make sound financial decisions, and grow into adulthood with confidence.”
Free financial literacy webinar
Some of the funding provided will support Enriched Academy hosting a free live webinar for grades 4 to 12 students and teachers on Tuesday, November 26, as part of their financial literacy programming. The webinar will teach students how to build their credit with confidence and will feature an interactive gameshow format to engage and motivate students to learn how credit works and how to manage credit and their personal finances with confidence. Students and teachers who are interested in participating can register for the webinar online.
“Our partnership with the Government of Alberta has enabled us to deliver transformational financial literacy education to nearly six hundred thousand students across the province. As a high school teacher, I’ve witnessed firsthand how financial literacy education empowers students, increasing their confidence in money management and preparing them to be financially responsible. Investments in financial literacy are investments in our students’ futures, and I’m already seeing it pay dividends for Alberta students.”
Teachers can also access lesson plans, activities, and interactive tools from all three organizations’ websites to support financial literacy learning outcomes in Alberta’s curriculum.
Quick facts
- Financial literacy programming offered by the three organizations reaches more than 350,000 students annually.
- Alberta’s renewed K-6 curriculum includes an increased emphasis on financial literacy skills, as well as a stronger foundation in financial literacy in all grades.
Related information
DEI
University System of Georgia to ban DEI, commit to neutrality, teach Constitution
By
“The basis and determining factor” for employment will be “that the individual possesses the requisite knowledge, skills, and abilities associated with the role, and is believed to have the ability to successfully perform the essential functions, responsibilities, and duties associated with the position for which the individual is being considered.”
The University System of Georgia’s Board of Regents has recommended a number of new and revised policies for its institutions, such as a commitment to institutional neutrality, the prohibiting of DEI tactics, and a mandatory education in America’s founding documents.
The University System of Georgia (USG) is made up of Georgia’s 26 public colleges and universities as well as Georgia Archives and the Georgia Public Library Service.
“USG institutions shall remain neutral on social and political issues unless such an issue is directly related to the institution’s core mission,” the board’s proposed revisions read.
“Ideological tests, affirmations, and oaths, including diversity statements,” will be banned from admissions processes and decisions, employment processes and decisions, and institution orientation and training for both students and employees.
“No applicant for admission shall be asked to or required to affirmatively ascribe to or opine about political beliefs, affiliations, ideals, or principles, as a condition for admission,” the new policy states.
Additionally, USG will hire based on a person’s qualifications and ability.
“The basis and determining factor” for employment will be “that the individual possesses the requisite knowledge, skills, and abilities associated with the role, and is believed to have the ability to successfully perform the essential functions, responsibilities, and duties associated with the position for which the individual is being considered.”
Beginning in the 2025-2026 academic year, the school’s civic instruction will require students to study founding American documents among other things.
USG students will learn from the Declaration of Independence, the United States Constitution and Bill of Rights, the Articles of Confederation, the Federalist Papers, the Gettysburg Address, the Emancipation Proclamation, and Martin Luther King Jr.’s Letter from Birmingham Jail, as well as the Georgia Constitution and Bill of Rights.
When reached for comment, the Board of Regents told The Center Square that “these proposed updates strengthen USG’s academic communities.”
The recommended policies allow a campus environment “where people have the freedom to share their thoughts and learn from one another through objective scholarship and inquiry,” and “reflect an unyielding obligation to protect freedom, provide quality higher education and promote student success,” the board said.
The board told The Center Square that it proposed strengthening “the requirements for civics instruction” with the inclusion of “foundational primary sources” because of higher education’s duty to students.
Colleges and universities “must prepare [students] to be contributing members of society and to understand the ideals of freedom and democracy that make America so exceptional,” the board said.
As for ditching DEI, the board explained that “equal opportunity and decisions based on merit are fundamental values of USG.”
“The proposed revisions among other things would make clear that student admissions and employee hiring should be based on a person’s qualifications, not his or her beliefs,” the board said.
The Board of Regents also said it wants to “ensure [its] institutions remain neutral on social and political issues while modeling what it looks like to promote viewpoint diversity, create campus cultures where students and faculty engage in civil discourse, and the open exchange of ideas is the norm.”
USG’s Board of Regents recently urged the NCAA to ban transgender-identifying men from participating in women’s sports, in line with the NAIA rules, The Center Square previously reported.
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