One-in-5 are more stressed about money than school, while 45% are using AI or social media to help make financial decisions
TORONTO, Aug. 18, 2026 /CNW/ -- Back-to-school season is bringing more than new classes, packed schedules and campus routines. A new TD survey reveals many Canadian post-secondary students are heading into the school year feeling squeezed by everyday costs, distracted by money worries and looking for practical ways to feel more in control. The findings also highlight how many students are turning to AI and social media for financial guidance, often without verifying the information before acting on it.
Key findings from this TD survey:
- 76% of post-secondary students say financial stress has had a negative impact on their wellbeing and academic performance
- 20% say they're more stressed about money than school
- 23% of students don't know how to build and maintain a budget
- 45% of students have used AI tools or social media for financial advice or information
- 90% have acted on the advice they received, but only 32% regularly verify it before taking action.
- 89% of students want to learn more about investing, from the basics to strategies and low-budget options
Financial stress is taking a toll on student wellbeing and academic success
Financial concerns have become a defining part of the student experience for many young Canadians, extending beyond tuition and textbooks into everyday spending decisions, housing costs and social activities.
The survey found almost nine-in-10 students (89%) have experienced financial stress in the last three months, with the top drivers including:
- Affording essentials like groceries and housing (53%)
- Budgeting difficulties and social spending concerns (41%)
- Managing debt, including credit card balances and repaying student loans (35%)
Compounding these challenges is a significant gap in financial literacy, with nearly 1-in-4 students (23%) admitting they lack basic budgeting skills.
"Students today are facing growing financial pressures, from rising everyday costs to the challenge of balancing school, work and social commitments," said Joe Moghaizel, Vice President, Everyday Advice Journey at TD. "When so many students say they struggle to create and stick to a budget, it highlights an important opportunity to build financial confidence early. The money habits students develop during their post-secondary years can help them manage today's realities and lay the foundation for stronger financial decisions long after graduation."
Money anxiety isn't just impacting students' wallets. It's also shaping how they learn, feel and show up each day. More than three-quarters (76%) of students polled say financial stress has had a negative impact on their wellbeing and academic performance, including:
- Mental health (42%)
- Ability to focus on studies (31%)
- Grades (29%)
- Sleep (27%)
More students are using AI for financial advice, but many don't verify the information
With financial questions increasingly being answered online, many students polled are relying on AI tools and social media for guidance. However, many are acting on advice without confirming its accuracy or source:
- 45% of students have used AI tools or social media for financial advice or information
- 90% have acted on the advice they received, but only 32% regularly verify it before taking action.
- 56% of students say they trust the financial advice they receive from social media and AI tools
"It's not surprising that students are turning to AI and social media for financial information because those tools are readily available and easy to access," said Hiren Amin, Market Technician and Educator, TD Direct Investing. "But financial decisions are personal and advice that's right for one person may not be right for another. Taking the time to verify information, consult trusted sources and seek guidance can help students make more informed choices and avoid costly mistakes."
Students want to learn more about investing, but barriers remain
While interest in investing is strong, many students are still sitting on the sidelines. More than half (53%) of students aren't currently investing, with a lack of knowledge (71%) and anxiety (43%) emerging as the top barriers.
Among the 47% of students who do invest:
- TFSAs rank as the top registered investment account (59%)
- Stocks (33%), ETFs (28%) and mutual funds (22%) are the most popular investment vehicles
At the same time, students have a strong desire to learn: 89% want to know more about investing, from the basics to different strategies and options for investing with a smaller budget.
"Students aren't lacking interest in investing; they're lacking confidence in where to start," added Amin. "For many young Canadians, the first step is the hardest. Investing doesn't have to be all-or-nothing. Even small steps today can help students build confidence, develop healthy financial habits and make progress toward their future goals."
Learn more about how TD can support students as they navigate key financial decisions: https://www.td.com/ca/en/personal-banking/solutions/student-banking
Top money tips for back-to-school
1. How can students build a budget if they've never created one before?
Building a budget doesn't have to be complicated. According to this TD survey, nearly 1 in 4 students (23%) don't know how to create and maintain a personal budget, making it one of the most common financial skills gaps identified by students. Start by adding up all sources of income, including earnings from part-time work, any scholarships, student loans and family support. Then list your expenses and divide them into essential costs, such as tuition, rent and groceries, and discretionary spending like dining out or entertainment. If expenses exceed income, look for opportunities to reduce non-essential spending and review your budget regularly to keep it on track. Students who aren't sure where to begin can use tools such as the TD Student Budget Calculator to better understand where their money is coming from, where it's going and how their spending aligns with their financial goals.
2. Why is budgeting so important for students right now?
A budget can help students understand where their money is going and make more informed spending decisions. TD survey data highlights the growing financial pressures students are facing, with 20% saying finances are causing more stress than academics and 53% of financially stressed Gen Z students pointing to essentials like groceries and housing as major concerns. Creating a budget can help prioritize essential expenses first while identifying areas where spending may be adjusted if needed. Tracking spending consistently and conducting regular check-ins can also help reduce costs from quietly adding up over the school year.
3. What can students do if financial stress is affecting their wellbeing or studies?
Financial stress can feel overwhelming, but students don't have to navigate it alone. More than three-quarters (76%) of students surveyed say financial stress has had a negative impact on their wellbeing and academic performance, with many also reporting impacts on their mental health and ability to focus on their studies. Breaking financial goals into smaller, more manageable steps, creating a spending plan and reaching out to trusted supports, whether that's family, school resources or a financial professional, can help make financial challenges feel more manageable.
4. Is it okay to use AI or social media for financial advice?
AI and social media can be useful starting points when learning about money, but they shouldn't be the only sources students rely on. This TD survey found that 45% of students have used AI tools or social media for financial advice or information, yet only 32% regularly verify that advice before acting on it. Before making important financial decisions, take time to confirm information through trusted sources and consider speaking with a financial professional who can help assess what applies to your personal circumstances.
5. How can students start investing if they don't have much money?
Starting small is often one of the best ways to begin. While 53% of students aren't currently investing, this TD survey also reveals a strong appetite to learn, with 89% saying they want to better understand investing. Students don't need a large amount of money to get started. Options like fractional shares and low-cost trading, available through platforms including TD EasyTrade allow investors to start with smaller amounts of money – in some cases as little as $1. Building knowledge, understanding risk and investing consistently, even with small amounts, can help build confidence over time and create healthy long-term investing habits.
6. What are some investing options students can consider when starting out?
This TD survey found that among students who invest, Tax-Free Savings Accounts (TFSAs) are the most popular registered investment account, used by 59% of student investors. Stocks, ETFs and mutual funds are also common choices. Before investing, students should understand their goals, time horizon and comfort with risk. Many investing platforms, including TD EasyTrade, also offer goal-planning features and built-in educational resources that can help new investors build their knowledge and confidence over time. Starting with an amount that fits their budget and focusing on learning can help make investing feel more approachable.
7. How can parents help support students with money management?
Regular conversations can make a meaningful difference. Findings from this TD survey underscore the critical role support systems can play, as finances continue to be a significant source of stress for many students. Parents and caregivers can help by creating space for open, ongoing discussions about budgeting, spending and financial goals. Reviewing budgets together, talking through financial experiences and encouraging students to track their spending can help them build confidence and strengthen their financial decision-making skills over time.
About the TD Survey
This TD survey, conducted using the Leger Opinion panel, ran from July 29, 2026 - August 17, 2026, with a nationally representative sample of 1,750 Canadian adults, including n=255 post-secondary students aged 18-29, and n=255 parents of post-secondary students. The results have been weighted by age, gender, and region (and in Quebec, language) to match the population, according to Census data. For comparison purposes, a probability sample of 250 has an estimated margin of error of ±6.2%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on April 30, 2026. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.
TD Easy Trade™ is a service of TD Direct Investing, a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank.
SOURCE TD Bank Group
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