Many young Canadians struggle with credit basics
A recent RBC survey reveals that nearly one in five Canadian students aged 18 to 24 either lack a credit score or do not grasp what one represents. The research, published by Royal Bank of Canada in October 2026, exposes significant gaps in financial awareness among post-secondary students, which could affect their financial stability as they enter adulthood independently.
The Ipsos poll of 500 students uncovered that 37% of those with a credit score cannot recall their own number. Nearly half (48%) are actively working to establish or enhance their credit, yet 28% remain uncertain whether their efforts are producing results. Misconceptions about credit mechanics persist: 5% mistakenly believe carrying a balance improves their score, while 6% think closing their oldest card is advantageous.
These misunderstandings have tangible consequences.
Financial professionals may capitalize on this unmet need. RBC’s data indicates that younger Canadians seek guidance but lack clear direction. While 74% recognize that timely payments are important and 69% understand responsible credit use, persistent myths suggest a demand for structured education. Advisors who explain credit fundamentals, such as score calculation and how early financial habits influence long-term stability, could position themselves as trusted resources before competitors do.
Credit education extends beyond scores. It prepares students for the financial shifts they will encounter. The survey demonstrates that many young adults are managing credit without proper guidance, yet they remain determined to improve. For advisors, this creates an opportunity to form early relationships before clients face major decisions like mortgages or investments.
RBC’s results reflect broader trends in financial literacy. Initiatives by organizations like the Canadian Foundation for Economic Education aim to address knowledge gaps, but personalized advice from advisors remains critical. The industry’s challenge lies not only in explaining credit but in helping young Canadians recognize its importance before they encounter financial obstacles.
The findings show that credit is more than a numerical value; it serves as the basis for future opportunities. For advisors, the data confirms that discussions about wealth management often begin with a simpler question: how to build it effectively.
