So your Netflix payment just bounced and you can’t watch the next episode of Daredevil. What do you do? You budget.
Today is the day where Finance Minister Bill Morneau is expected to present how he plans on spending your money. This past election, the Liberal party promised numerous new programs to “invest” in the middle class, including a new tax cut for middle class families, money for infrastructure projects, student loan reform, and a new child benefit plan.
The problem, however, is that there aren’t enough funds to pay for these programs. Do you remember that time you were about to pay for your monthly Metropass but couldn’t afford your credit card and cellphone bills? Do you choose to pay for your gym membership, or pay your monthly minimum? You picked up extra shifts but your bank account is still running low on cash. How do you pay for it?
Well, Morneau is in the exact same position. Today’s federal budget announcements outline Prime Minister Trudeau’s plans to pay for these bills and his extra programs. Instead of Netflix and chill, for the federal government it is surplus or deficits.
Here are some terms you might hear and how it relates to you:
Middle Class: The core group of Canadians the government wants to help. Think squad.
Deficit: A government’s tool to borrow money and spend it. Think using your credit card instead of your debit card.
Canada Child Benefit Plan: The Trudeau government’s plan to give a family of four an extra $2,500. It’s like Christmas money but for childcare.
Student Loan: The government plans on increasing student grants to $3,000. Yasss JT Yassss.
Balanced Budget: The goal of the liberal government to balance the books at the end of their fourth year mandate.
The budget is set to be released today at 4 p.m.