Financial Success (Credit Scores & Taxes)

💳 1. The Credit Score Game (How to Win)

You start with a "0" score. You need to build it to 750.

The Rules of the Game:

1. Get a Credit Card: Use the student offers (CIBC/Scotiabank/RBC) mentioned in Page 4.
2. The "30% Rule" (Crucial):
• If your limit is $1,000, NEVER spend more than $300 (30%) in a month.
• Myth: "I should spend $900 and pay it off to show I'm rich."
• Reality: This lowers your score because you look "desperate" for credit.
3. The "2-Day" Rule:
• Pay your bill 2 days before the due date. Canadian banks take time to process. If you pay on the due date, it might arrive late -> Late Fee + Score Drop.
4. Never Use "Cash Advance":
• Withdrawing cash from an ATM using a Credit Card charges you 24% interest instantly. Never do this. Use your Debit Card for cash.

💸 2. Taxes: The "Free Money" You Are Missing

In India, students don't file taxes. In Canada, you MUST file to get free cash.

• The GST/HST Credit:
• The government gives low-income residents (you!) money to help with sales tax.
• Amount: Approx. $496 - $650 per year (paid quarterly).
• Condition: You must file your taxes in April, even if your income is $0.
• Tuition Credits:
• Your college fees ($17,000+) generate "Tuition Credits."
• Benefit: You don't get cash back now, but when you get a full-time job later, these credits reduce your future tax bill by thousands.
• TVT’s Advice: Don't pay an accountant $100. Use free student software like WealthSimple Tax or UFile (it’s easy).

📉 3. Budgeting (The Student Reality 2025)

Inflation is high. Here is where your money goes.

Monthly "Survival" Budget (Toronto/Vancouver):

• Rent: $900 (Shared Room)
• Groceries: $300 (Cooking at home)
• Phone/Data: $45
• Transport: $128 (Student Pass)
• Fun/Eating Out: $150
• Total: ~$1,525 CAD / month.
• Your Part-Time Income: 24 hours x $17.20 = ~$1,650 (after tax).
• Result: You will break even. You won't save much. Cook at home to survive.

🚗 4. Buying a Car (The "Insurance Shock")

Students buy a cheap car for $3,000 and then realize they can't afford to drive it.

• The Trap: A used Honda Civic costs $4,000.
• The Shock: Insurance for a new driver (under 25) in Brampton/Surrey is $400 - $600 PER MONTH.
• The Rule: Before buying any car, call an insurance broker to get a quote.
• The License Hack:
• Bring your Indian Driver's License Extract (from RTO India).
• It allows you to skip the 1-year waiting period between the G1 (Learner) and G2 (Driver) test in Ontario.

🛡️ 5. Financial Safety (Scams)

• The "Cheque Overpayment" Scam:
• Someone "hires" you online and sends a $2,000 cheque for a $500 job. They ask you to "keep your share and wire back the rest."
• Result: The cheque is fake. It bounces 3 days later. The bank takes the full $2,000 from your account. You lose everything.
• The "e-Transfer" Mistake:
• Once you send an e-Transfer, it is gone. Never e-Transfer a landlord you haven't met.

TVT’s Final Money Tip:

"Treat your Credit Score like your GPA. If it drops, fixing it takes years. Set 'Auto-Pay' on your credit card for the 'Minimum Amount' so you never accidentally miss a deadline."