Youth at Risk: Job Loss and Savings

Only 5% of the new jobs created since mid 2009 went to young workers, according to The Vanier Institute of the Family. Its 12^th report on the financial health of the Canadian family, The Current State of Canadian Family Finances 2010 Report warns that the group most keenly affected by under-employment in Canada is youth in the 15-24 age range and as a result "this will force more students to increase their already high debt loads and put more pressure on families for financial support.î

How can financial advisors help at tax time? Financial professionals can provide education to young people on how to save money on their taxes with an RRSP and then tap into the savings tax free under the Lifelong Learning Plan. Parents can be educated on tax preferred savings and investment vehicles such as RESPs and TFSAs to begin saving for younger children. Preparing taxes as a family, rather than individual tax filing, can also help. This will ensure that transferrable provisions like the tuition, education and textbook credit are maximized.

Because thirty seems to be the new twenty, advisors need to be prepared to help families deal with longer periods of support for young adults in the post-recession world. This must be factored into the tax and financial planning exercise.

ADDITIONAL EDUCATIONAL RESOURCES:

EverGreen Explanatory Notes

Introduction to Personal Tax Preparation Services