Building a Strong Financial Foundation: Tips for Newcomers in Canada
Canada is known for the vast opportunities it provides and its strong economic landscape. From 2016 to 2021, 1.3 million new immigrants into the country have been recorded. While Moving to Canada, managing finances will be one of the major obstacles with a new financial ecosystem and a new currency, Canadian Dollar. In this blog, we will explain the financial ecosystem of Canada, from Banking to Tax Management, along with the best practices and Financial Tips for Newcomers in Canada for managing money that can be followed to budget, save, invest and maintain a positive credit score.
CANADIAN BANKING SYSTEM
Setting up a bank account is the fundamental step for you as a newcomer in Canada. You can use the debit card of your home country at the Automated Teller Machine (ATM) or at shops which will, however, charge you additional fees. Setting up a bank account and transferring the funds to the new account is the best option you can opt for.
You can open a new bank account by walking into the local bank branch near you or online through Internet banking. The documents required to open a bank account are –
- Social Identification Number (SIN)
- Immigration Papers
- Verification of address through Temporary Residence Permit or Permanent Residence Permit or Confirmation of Temporary Residence Permit
The Banking operators will advise newcomers to Canada to open a new bank and even register their businesses with the bank. Some banks even have special promotions for newcomers in Canada.
Investment is an asset whose value increases with time and is one of the best options to improve the personal finances of Canadian Immigrants in 2023. You can invest in either companies or securities. Personal Finances Canada can be improved through investment as it provides income in future for a specific time duration and can even be sold at a higher price than the original price at which it was bought.
The basics of managing Personal Finance for Canadian Immigrants in 2023 is to create a monthly budget tracking your income and expenditures for necessary utilities, such as rent, transportation, groceries and health amenities. Once you are done preparing a monthly budget, you can figure out a balance for managing money and saving accordingly. You can divide your savings and put some into investments and others into savings accounts, which will accrue interest, to manage Personal Finance for Canadian Immigrants in 2023.
CREDIT HISTORY AND SCORE
After investing and budgeting, understanding credit cards and credit scores will help manage money in Canada. The Personal Finance for Canadian Immigrants in 2023 suggests the following three options that provide Credit cards for newcomers in
Canada with no existing credit history in Canada :
- “Newcomer to Canada” program of Canadian bank
- A secured credit Card
- Financial Institution that recognizes your Credit history existing in your home country
The credit card payments are to be made at the end of the month, which will be reflected in the Credit History. The detailed credit report from the bank provides you with a Credit Score. Our advice for newcomers to Canada is that you should track your expenditure through a credit card and make the payments on a timely basis to improve your credit card score. When you get a credit card, use it responsibly.
Once you are in Canada and enrolled in the Canadian economy, you will be required to pay taxes and file tax returns yearly. The critical aspect of Personal Finances Canada is to get a knowledge of the tax system in Canada, which has deductions and credits available. So you must be up to date with the taxation policies and file the returns by the deadlines prescribed by the policies.
Personal Finance for Canadian Immigrants in 2023 has options for you even to transfer money in domestic and international areas. You can transfer the money to your home country, subject to fees. Even though the procedure to transfer money internationally is simple, the fees are high, ranging from $15 per transfer to $40 per transfer. There is no lack of channels or platforms for transferring money.
These Financial Tips for Newcomers in Canada will act as a guide for managing Personal Finance for Canadian Immigrants in 2023. Being able to manage your finances in Canada will determine your future prospects of staying in Canada. While following the financial tips, you should research well to stay updated about the new policies and be alert for scams and fraud. You must make an informed decision while estimating the risk and returns of a scheme or plan you are seizing. Establishing a solid financial foundation in Canada might take time and effort, but it will be worth it. To get complete strategies on how to kick-start your financial journey in Canada and achieve your dream goals, you can consult our experts at Sharkish immigration. Our experts offer a one-stop solution for your canadian immigration requirements whether you are in or outside Canada. You can reach out to us at our Facebook LinkedIn, and Instagram handles.
Let’s get your Canadian adventure started!