A $2000 gift for students

A $2000 gift for students

UPGRADE ; DAY

Allow me to put a little balm on your portfolio battered by inflation and rising interest rates.

OK, this doesn't necessarily concern you . But it could interest young people around you: a gift of $2,000 may be waiting for them, only a few formalities separate them. Everyone seems to ignore it.

If you live near a CEGEP, university or vocational training center, feel free to print this column and pin it on the school bulletin boards, you would be doing useful work. Push the message on TikTok, while you're at it.

As for me, here's my contribution.

A little-known aspect of RESPs

It has to do with the Registered Education Savings Plan (RESP). This program, as we know, makes it possible to collect subsidies equivalent to 30% of the parents' contributions. But that's not the aspect I want to discuss.

It's more about the Canada Learning Bond (CLB), additional federal assistance for low-income families. Eligible individuals can receive $500 starting in the year the RESP beneficiary is born, and $100 per year until the child's 15th birthday, for a total of $2,000.

No need to pay a penny into the RESP to receive the CLB, just open the account.

I have already dealt with the subject on this page, but starting this year, the BEC has something special in store. 

A first cohort passes ” Go! “< /strong>

Young people between the ages of 18 and 20 can retroactively claim the BEC for themselves. Only, to be eligible for the famous voucher, they must be born on or after January 1, 2004. In other words, 2022 is the first year in which young people can take advantage of it, because those who were born in 2004 celebrate their 18th birthday this year.

No, I had not programmed an alert on my computer in anticipation of this announcement, it was the tax expert Charles Hunter-Villeneuve, author of a series of comic strips on financial education (Lire et Tirelire), who pointed this out to me. “It's surprising that it didn't make more noise, it seems to me that no one talked about it,” observes the senior advisor at the Center of Expertise at National Bank Private Wealth Management 1859.

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The approach

So only young people born in 2004 and aged 18 can go to the cash register for the moment. Who is likely to find money at the end of the process? The person with post-secondary studies who comes from a modest background and for whom no RESP has been opened.

The sum of $2,000 awaits those who have qualified for the BEC for 16 years (from birth to 15th birthday). A young person who would have been eligible for a single year would be entitled to $500.

The criteria have been modified over the years, they are essentially based on the income of the parents. For the past few years, Ottawa has also taken into account the number of dependent children.

According to the information provided on the Government of Canada website, to receive the BEC, an 18-year-old must be enrolled in a recognized post-secondary program, full-time or part-time, which takes place over a period of three weeks. consecutive.

He must open an RESP account and provide the promoter (the financial institution) with proof of registration. That's all.

We deduce that it will be officials who will check whether the young person meets the criteria, and over what period. Charles Hunter-Villeneuve understands the same thing as me.

Students who are unsure if they qualify should not hesitate for a second to open an RESP. In the worst case, they will have wasted some time in the bank. At best, they will see $2,000 deposited in their RESP account.

Let's insist: we have nothing to deposit, the money will come by itself. 

free money! Spread the news! 

Do you recognize yourself?

  • You were born in 2004 and you are 18 years old.
  • No RESP in your name has been opened (if not, the CLB has already been deposited in the account).
  • You come from a low income household.
  • You are studying in an apprenticeship program, CEGEP, trade school, college or university.< /li>
  • So run to your financial institution and have an RESP opened in your name as soon as possible! Note that on the 21st birthday it will be too late..

A $2000 gift for students