A $2000 gift for students

Let me put some balm on your inflation-strewn and rising-interest-rate wallet.

OK, that doesn’t necessarily apply to you. But it may interest young people around you: they may have a $2,000 gift waiting for them, with only a few formalities separating them. Everyone seems to ignore it.

If you live close to a CEGEP, university or vocational training center then feel free to print this column and pin it on the school bulletin board, you would be doing some useful work. Push the post to TikTok while you’re at it.

As for me, here is my contribution.

An unknown aspect of the RESP

It has to do with the Registered Education Savings Plan (RESP). As is well known, this program allows the collection of subsidies amounting to 30% of the parental contributions. But I don’t want to address that aspect.

Rather, it is the Canada Learning Bond (CLB), an additional federal aid for low-income families. Eligible individuals can deposit $500 from the RESP beneficiary’s year of birth and up to their 15th year of birthe Children’s birthday party, for a total of $2,000.

You don’t need to deposit a dime into the RESP to get the CLB, just open the account.

I’ve already covered the subject on this page, but starting this year, the BEC is reserving something special.

A first cohort consists of “Go! »

Young people between the ages of 18 and 20 can claim the BEC retrospectively. Just to get the famous coupon, they have to do it on the 1st of the monthah January 2004 or later. In other words, 2022 is the first year that young people can benefit, as those born in 2004 celebrate their 18th birthdaye birthday this year.

No, I hadn’t programmed an alarm on my computer in anticipation of this announcement, it’s tax expert Charles Hunter-Villeneuve, author of a series of comic strips on financial education (Reading and piggy bank) who pointed this out to me. “It’s surprising that it hasn’t made more noise, it seems to me that nobody has spoken about it,” observed the Senior Advisor of the National Bank’s Private Banking Competence Center 1859.

Approach

Therefore, for the time being, only young people who were born in 2004 and are 18 years old can checkout. Who is likely to find money at the end of the process? The post-secondary student who is of humble origin and for whom an RESP has not been opened.

The sum of $2,000 awaits those who have qualified for the BEC for 16 years (from birth to 15 years of age). A young person who was only eligible for one year would be eligible for $500.

The criteria have been modified over the years and are mainly based on parental income. In recent years, Ottawa has also taken into account the number of dependent children.

According to information on the Government of Canada website, in order to receive the BEC, an 18-year-old must be enrolled in an accredited full-time or part-time post-secondary program, taking place over a period of three weeks consecutively.

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

We conclude that it will be officials who will assess whether the juvenile meets the criteria and over what period of time. Charles Hunter-Villeneuve understands what I do.

Students who are unsure about their qualifications should not hesitate for a second to open an RESP. At worst, they wasted some time in the bank. At best, they’ll have $2,000 deposited into their RESP account.

Let us 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 are 18 years old.
  • No RESP has been opened in your name (if not, the CLB has already been deposited into the account).
  • You come from a low-income household.
  • You are studying in an apprenticeship, at a CEGEP, commercial school, technical college or university.
  • So go to your financial institution and have an RESP opened in your name as soon as possible! Note that on the 21ste birthday, it will be too late..

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