Welcome to Canada!
Settling into a new country is an exciting but daunting task, made all the more complicated when you factor in the challenge of getting your finances in order. Here are three financial tips for newcomers to help them get on the right foot:
One of the first things you should do upon arrival in Canada is to open a bank account. This will allow you to access your money and make transactions easily. Be sure to shop around and compare different banks and their offerings to find the best fit for you.
The two most common types of accounts are chequing and savings.
Savings accounts are a great way to set money aside for large purchases or unforeseen expenses. If you’re new to Canada, shop for banks offering special promotions for newcomers. Always be sure to compare options before making a decision. Once you’ve opened an account, make regular deposits. Even deposits as small as $20 each week can go a long way in keeping you on track to reach your saving goals over time.
In Canada, your credit score is important – financial institutions use it to determine your eligibility for loans, lines of credit and credit cards. If you have a good credit score, you can access better terms and rates. You can check your credit score for free with a credit reporting agency such as Equifax or TransUnion.
A credit card can help you establish your credit history, which is key for things like renting an apartment or applying for a loan in the future. Many financial institutions in Canada require newcomers to put down a sizable deposit for a credit card if they don’t have an established credit history, so it’s advantageous to apply as soon as possible.
It’s never too early to start thinking about your long-term financial goals in Canada. Do you want to buy a house? Save for retirement? Start investing? Begin by looking at your current budget and expenses to get an idea of where you can start making changes.
There are many resources available to help you make financial decisions that are right for you. The Government of Canada’s website has various topics, from credit and debt management to saving and investing.
Though there are plenty of difficulties that come with moving to a new country, managing your finances is often one of the trickiest. By following these three simple tips, newcomers to Canada can hit the ground running regarding managing their money and building their financial future in their new homes.
