Financial Tips for Students During Coronavirus

Those seeking financial tips for students during coronavirus have come to the right place. Are you a student amid the Coronavirus pandemic? Being a student isn’t easy. Dealing with a pandemic isn’t making life easier. Paying your bills, debt with high-interest rates like credit cards, and making mortgage payments are all challenging.

In this article, we’ll provide you with financial tips during Coronavirus. We’ll look at the government benefits to help you get through this tough time and how to go about applying. For those looking for a summer job, we’ll take an in-depth look at the Canada Summer Jobs Program and who’s eligible.

Canada Emergency Student Benefit (CESB)

The Canada Emergency Student Benefit (CESB) is a newly created benefit specifically for post-secondary students to help them during the COVID-19 pandemic. It’s to provide financial assistance to students experiencing financial difficulty over the summertime and who may not qualify for the CERB.

As a student, you’d be entitled to a payment of $312.50 per week or $500 per week if you have a dependent or you’re a person with a disability. It’s available in four-week installments, amounting to $1,250 or $2,000 a month. The CESB is available from May to August 2020.

To be eligible for payment under the CESB you must be a Canadian citizen, a permanent resident or a person registered under the Indian Act, have enrolled at a post-secondary institution any point between December 1, 2019 and August 31, 2020 or graduated in 2020 and intend to enroll in a program before February 1, 2021, and COVID-19 has negatively affected your summer employment situation.

If you meet the above criteria, you can apply for the CESB directly with the CRA. You have until September 30, 2020 to apply for the benefit. Below are other tips for students during coronavirus.

Canada Emergency Response Benefit

The Canada Emergency Response Benefit (CERB) helps provide temporary income support. It’s for those who are employed (including students) or self-employed (including gig workers and small businesses) and whose personal finances have been impacted by the Coronavirus pandemic in the short and long term. It’s a great way to avoid depleting your emergency fund and savings account.

How much you can get from the CERB?

CERB intends to replace some of your lost income, not all of it. Under the CERB, you may be eligible to receive a payment of $2,000 for four weeks (or $500 per week) for a maximum of 16 weeks. Along with your emergency savings, you can use it to get by during COVID-19.

After applying, you should expect to receive your payment in three business days if signing up for direct deposit or in 10 business days if by regular mail.

Eligibility requirements

Although the CERB is available to most Canadians affected by Coronavirus (those who can’t work from home), it’s essential to check the eligibility requirements before applying to make sure you qualify. To be eligible for the CERB, the following states that you:

  • Must live in Canada and be at least 15 years old.
  • Must have stopped working due to COVID-19; you’re eligible for Employment Insurance regular or sickness benefits, or you’ve exhausted your Employment Insurance monthly benefits from December 29, 2019, and October 3, 2020.
  • Had employment or self-employment income of $5,000 or more in 2019 or the 12 months before applying for the CERB.
  • Haven’t voluntarily quit your job.

When submitting your application for the CERB, you mustn’t have made more than $1,000 in employment or self-employment income for 14 or more days in a row within the four week period of your claim.

Also, when applying, you can’t have made more than $1,000 in employment or self-employment income for the whole four week benefit period of your new claim.

Other Considerations

As a full-time student, it can be tough meeting the eligibility requirement for the CERB, especially the condition of having $5,000 or more in employment income in 2019 or the last 12 months.

To address this, the federal CERB has revised the CERB. With the changes the federal government announced on April 22, 2020, the benefit will now allow college and university students to receive up to $1,250 per month between May and August. If you’re a college or university student who’s taking care of someone else or you’re a person with a disability, you’ll be eligible for up to $1,750 per month.

If you’re a college or university student in school planning to start in September 2020 or you graduated in December 2019, you’re also eligible. Even if you’re a student who’s working during the school year, you qualify if you earn less than $1,000 per month.

In case you’re wondering, you won’t have to worry about your federal student loan. Fortunately, you do not have to make student loan payments during COVID-19.

How to apply

To help deliver the CERB payments in a fast and efficient way, both Service Canada and the Canada Revenue Agency (CRA) are working together.

To begin the application process, visit the government website, and complete the questionnaire. Answer a few basic questions, and the program presents the option that’s right for you.

It’s important to only apply for the CERB through Service Canada or the CRA, not both. Submitting applications to both will only slow down the application process.

Canada Summer Jobs Program

The Canada Summer Jobs Program

The Canada Summer Jobs Program is an initiative by the federal government. Through the Youth Employment and Skills Strategy, it aims to provide support to young Canadians looking to develop their skills through paid work experience. It also helps young Canadians successfully transition into the labour market.

The Canada Summer Jobs program has three key program objectives, which are to provide:

  • Quality work experience for younger Canadians
  • Better access to the labour market for youth by responding to national and local priorities
  • Opportunities for youth to improve and develop their skills

To encourage employers to hire younger workers, the program provides wage subsidies to employers in the public sector, non-profit organizations, and private organizations with 50 or fewer full-time employees. The idea is to create a quality summer work experience for younger folks between the ages of 15 and 30. Beginning in 2019, the program goes beyond the students exclusively. Anyone between the ages of 15 and 30 may be eligible to participate.

Summer Jobs Program Requirements

To be eligible to take part in the Canada Summer Jobs Program, you must:

  • Be between the ages of 15 and 30 when the job starts.
  • Be a Canadian citizen, permanent resident, or person with refugee protection under the Immigration and Refugee Protection Act for the entire term of the employment.
  • Have a valid Social Insurance Number when the job starts, and you’re legally eligible to work in Canada according to the relevant provincial legislation and regulations.
  • Be at least 15 years old when the job starts. However, you may be over 30 years old when the job ends, as long as you’re 30 years old when the job begins.

Other Financial Tips for Students During Coronavirus

Aside from the programs above, there are various other things a student can do to stay above water. For instance, save the money you would otherwise spend on a night out with friends. Instead of going to the pub (you should be social distancing anyway), save the money and begin your personal emergency fund.

As a student, you may be accustomed to eating ramen and other inexpensive meals. Try to maintain a healthy diet while maintaining a spartan food budget. Stock up on oatmeal, eggs, rice, and fresh fruits and vegetables for snacks.

Use the time you would have been spending out on a weekend:

  • Learning a skill
  • Revising your resume
  • Building your financial literacy
  • Reading about savings and investments
  • Applying to remote positions

One of the most obvious financial tips for students during coronavirus would be to stop using your credit cards. Likewise, if you have to pay rent, see if you qualify for a temporary payment deferral.

Are you a student who’s struggling during COVID-19? Are you looking for some extra financial tips? Contact our offices today. Our financial planners can help you get through this challenging situation.

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