Ten things Gen Z and Millennials should know about federal budget
Making life more affordable for younger Canadians top priority
Generation Z (Gen Z) and millennials were focal points in the 2024 federal budget.
Titled “Fairness to Every Generation,” the Liberal government’s budget aims to even the playing field between young Canadians and their Generation X and baby boomer counterparts.
In her budget speech, Deputy Prime Minister and Finance Minister Chrystia Freeland spoke of the struggles Gen Z and millennial Canadians experience as they try to progress in their adult lives.
Freeland said a fair chance to live a good middle-class life has always been Canada’s promise.
But younger Canadians are struggling to get there.
MAKING PROMISE A REALITY
“Millenial and Gen Z Canadians can get a good job, work hard, and do everything their parents did and more and too often the reward remains out of reach,” Freeland said.
“They look at their parents’ lives and wonder, how will I ever be able to afford that?”
Budget 2024, according to Freeland, is about the Canadian promise becoming a reality for younger Canadians.
“Making the promise of Canada real for younger Canadians requires action from us and that is what we are delivering,” she said.
Here are 10 things Gen Z and millenials should know about Budget 2024.
RENTING HELPING CREDIT SCORE
According to the Canada Mortgage and Housing Corporation (CHMC) January 2024 Rental Market report, roughly one-third of Canadians are renters. In Newfoundland and Labrador, the 2021 Census revealed 53,680 people are renting.
To make homeownership more accessible, the federal government is calling on banks, fintech, credit bureaus, and landlords to allow renters to use their rent payment history to improve their credit score, making it easier to get a mortgage and possibly a lower rate.
More Gen Z and millennials are renting today than the generations that came before them, with over 54 per cent of people between 25 and 34 being renters, and that number jumps to 81 per cent for people under 24 years old.
In comparison, 25 per cent of Canadians between 55 and 64 are renters.
CANADIAN RENTERS BILL OF RIGHTS
Across Canada, renters have dealt with rent hikes and renovictions — a term used to describe when a landlord evicts a tenant by claiming they will complete major renovations.
Budget 2024 proposes a Canadian Renters’ Bill of Rights to protect renters from unfair practises.
The bill of rights will partner with provinces and territories. According to the budget, the bill will simplify leases and increase price transparency.
“The government intends to crack down on renovictions, introduce a nationwide standard lease agreement, and require landlords to disclose historical rent prices of apartments.”
3.87 MILLION NEW HOMES
One of Budget 2024’s major pillars is housing. Besides Canada’s new housing plan, the government plans to unlock 3.87 million new homes by 2031.
“We’re building more affordable homes. Because the best way to make home prices more affordable is to increase supply — and quickly,” Freeland said in the foreword of the budget.
“For millennial and Gen Z renters, we’re restoring the chance to make progress towards homeownership.”
30-YEAR MORTGAGE
For Gen Z and millenials, mortgage payments are a barrier for first-time home buyers.
In Budget 2024, Canada is extending mortgage amortizations for first-time buyers purchasing new houses to 30year amortizations — a fiveyear increase.
This new insured mortgage product will be available to first-time buyers starting Aug. 1.
NEW YOUTH MENTAL HEALTH FUND
Budget 2024 recognizes that young Canadians experience mental health challenges and struggle to pay for the costs of private mental health care in combination with the rising cost of living. As a result, the budget proposes providing $500 million over five years, starting in 2024-2025, for a new youth mental health fund.
“It is critical that youth have what they need to build a happy, healthy start in their adulthood. Mental health care is an essential part of ensuring every young Canadian can reach their full potential, and that helps Canada’s economy reach its full potential, too,” the budget stated.
$10-A-DAY CHILDCARE EXPANSION
The budget recognized childcare’s financial impact on young families, comparing the cost to a second rent or mortgage payment.
The government funds $10-a-day child care through Child Care Expansion Loan Programs and Student Loan Forgiveness Programs for Early Childcare Educators (ECES). Canada is aiming to create 250,000 new childcare spaces by March 2026.
EXTENDING STUDENT GRANTS AND INTEREST-FREE LOANS
Budget 2024 is extending the increase in full-time Canada Student Grants from $3,000 to $4,200 per year and interestfree Canada Student Loans from $210 to $300 per week.
“The federal government is also calling on provinces and territories to make education more affordable through robust investments in student financial assistance and postsecondary institutions,” the budget stated.
NEW STUDENT HOUSING
Canada is removing the GST on new student residences for not-for-profit universities, public colleges, and school authorities to incentivize institutions to build more student housing.
This measure is expected to cost $19 million over five years, starting in 2024-25, and $5 million per year ongoing.
MORE EXPENSIVE VAPE AND NICOTINE PRODUCTS
Budget 2024 said millennials and Gen Z are picking up on new forms of old habits because of appealing marketing: “vaping nearly as frequently as the baby boomers smoked cigarettes,” the budget said.
The federal government, as a result, is increasing the tax on cigarettes and vaping products.
On April 17, cartons of cigarettes became $5.49 more expensive, and in July the cost of vaping products will go up by 12 per cent.
The budget said nothing is more valuable than a long and healthy life.
“The government is taking action to protect the next generation from harmful, cancercausing habits.”
ELIMINATE CREDIT SCREEN
To help mature students return to post-secondary to “pursue their dreams or find a better-paying job,” Budget 2024 proposes permanently eliminating the credit screening requirement for mature students applying for Canada Student Grants and Loans for the first time.
This measure is estimated to cost $18.9 million over five years, starting in 202425, with $4 million annually ongoing. It will allow up to 1,000 students per year to benefit from federal student aid.