Amid inflation and housing challenges, students and young adults can navigate the path to independence by prioritizing their financial health.
Between 2016 and 2021, approximately 35 per cent of young adults in Canada, aged 20 to 34, resided in households with at least one of their parents. However, according to Statistics Canada, Ontario stands out with a notably higher percentage, reaching 41.9 per cent, likely due to the increased living expenses in this province.
Low vacancy rates may contribute to living-at-home arrangements, as low supply can lead to higher rental costs. Interestingly, this is the second consecutive year Peterborough had the lowest apartment vacancy rate in Ontario.
The trade-off to living with parents is that a car may be within budget but this can also be financially challenging. According to RateHub.ca, students pay more for insurance than the average driver since they are less experienced and have a shorter track record.
Young Canadians are educating themselves about money to enable smarter choices.
Taking steps to increase your financial literacy is the first step to managing your finances and building your wealth. According to the Government of Canada’s Financial Capability Survey, more than half of Canadians aged 18 to 34 have taken steps to strengthen their financial knowledge, mainly through online study (26 per cent) or at work or school (24 per cent).
Kawartha Credit Union supports young adults and students
In addition to providing bursaries for post-secondary education, Kawartha Credit Union offers tailored financial advice, products and services for young adults, such as the Breakfree Plan.
This plan helps those aged 25 and under work toward financial independence with no-fee banking (including unlimited self-serve transactions, Interac e-transfers and withdrawals), no-fee or low-fee credit cards, student loans and financial advice.
The credit union also offers a Student Line of Credit to help cover expenses, such as textbooks, living costs, rent, and transportation. You only pay interest on the monthly amount and there are no annual service fees. The principal begins being repaid six months after graduation and there is no obligation to repay anything if the credit line was never used.
There are many benefits to choosing Kawartha Credit Union for all of your banking needs:
Community Involvement Program – KCU shares their profits to support health, education, youth and environmental causes in their branch communities, including thousands in student bursaries. You can feel good about banking at KCU because they share profits to support important causes in their branch communities.
Circle of Friends Referral Program - Refer friends and family for a chance to win cash rewards
Members are awarded Affinity Shares for choosing KCU for all their banking needs. The more business you do with KCU, the more you receive in Affinity Shares. It’s their way of saying “thank you” for your business!
As a member of KCU, you can get better home and auto insurance rates.
Their network of 22 branches offers convenient hours, Exchange Network ATMs offer surcharge-free transactions for members, and you will also have access to online and mobile banking and an extended hours Contact Centre.
From investment products to loans, lines of credit and mortgages, KCU offers flexible solutions and competitive rates for all your financial needs at every stage of life.
Loans, mortgages and lines of credit are approved locally. KCU offers quick turn-around and they make your financial needs a priority.