Being a newcomer in Canada is a significant life transition with excitement and challenges, especially financial ones. Between setting up a home, finding employment, and adjusting to a new culture, you may face unexpected expenses that can strain your savings as a new immigrant. However, with the proper knowledge and tools, you can manage your finances and save money while establishing a new life in Canada.

This guide explores proven strategies, programs, and tips to help you save your money as a newcomer in Canada.

How Can I Save Money as a Newcomer in Canada?

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Establishing yourself financially in a new country like Canada can be challenging, but implementing smart saving strategies from the outset is key to long-term security. Here is a look at the top things you can do to save money as a newcomer in Canada.

The Cost of Living in Canada

Before saving money, you must understand where your money is going. The cost of living in Canada varies greatly depending on the city or province. Major cities like Toronto and Vancouver are known for their high rental and housing costs. Smaller cities and provinces like Winnipeg or Halifax often offer a more affordable lifestyle. This is depicted in the table below with figures from Numbeo.

Expense Category Toronto (CAD) Winnipeg (CAD)
Rent (1-bedroom Apartment) 2,509.13 1,257.10
Public Transit 3.35 3.25
Phone 52.88 58.50

Understanding these differences can help you make informed choices, such as where to settle if cost is a significant concern.

Create a Budget From Day One

Creating and sticking to a budget is one of the most effective ways to manage your money as a newcomer in Canada.

Use Budgeting Tools

Apps like Mint, YNAB (You Need a Budget), and KOHO can help you track income and spending. You can categorize your expenses and set savings goals, giving you better control over your finances in Canada. Make sure you prioritize needs over wants when budgeting, primarily focusing on:

  • Rent and utilities,
  • Transportation,
  • Groceries and household needs,
  • Insurance (health, car, tenant)
  • Communication (phone/internet).

Once necessities are covered, you can allocate funds toward savings or discretionary spending.

Take Advantage of Settlement Services in Canada

Canada offers a wide range of free newcomer services funded by the federal and provincial governments. These services can help reduce job hunting, language learning, and social integration expenses. Some of the key settlement services you can use as a newcomer in Canada include:

  • Free English/French language classes, e.g., Language Instruction for Newcomers to Canada (LINC)/ Cours de langue pour les immigrants au Canada (CLIC),
  • Job search assistance and résumé workshops,
  • Free career counseling, and
  • Public libraries with free internet and study spaces.

You can access these services through organizations such as:

  • YMCA Newcomer Services,
  • Immigrant Services Society of British Columbia (ISSofBC), and
  • COSTI Immigration Services.

Save on Housing in Canada

Housing in Canada is generally the biggest monthly expense for newcomers. Here are ways to reduce that cost:

Share Accommodations

Consider renting a room or sharing a home with others until you are financially stable. Use websites like Kijiji, Roomies.ca, or Facebook Marketplace to find affordable options.

Look Beyond Downtown

Living outside the city center, while factoring in transportation costs, can significantly lower your rent. Suburban areas or smaller towns often offer better value.

Explore Subsidized Housing (Long-Term)

Some Canadian provinces and municipalities offer subsidized or rent-geared-to-income (RGI) housing for low-income individuals and families. Although waitlists can be long, applying early is worthwhile.

Buy Second-Hand or Budget-Friendly Essentials

Outfitting a new home from scratch can be expensive, but buying second-hand items can save a lot. You can shop for budget-friendly or second-hand essentials as a newcomer in Canada from:

  • Thrift stores like Value Village or Salvation Army,
  • Facebook Marketplace,
  • Kijiji.ca, and
  • Freecycle or local “Buy Nothing” groups.

You can find everything from furniture and appliances to clothing and electronics at a fraction of the price.

Use Public Transportation

Owning a car in Canada is costly; gas, insurance, maintenance, and registration all add up. Until it becomes necessary, consider using public transit systems, which are strong in most urban centers. Here are some of the most affordable monthly transit passes in major Canadian cities, with figures from Numbeo.

  • Toronto (TTC): 156.00 CAD.
  • Montreal (STM): 100.00 CAD.
  • Calgary (Calgary Transit): 118.00 CAD.
  • Vancouver (TransLink): 120.00 CAD (1-zone).

Many Canadian cities also offer discounted or free passes for low-income residents, students, and seniors. Check your local municipality for available transit subsidy programs.

Shop Smart for Groceries

Food costs can vary depending on where you shop and what you buy. Below are some common tips you can use to save on groceries in Canada as a newcomer.

  • Shop at discount stores like No Frills, FreshCo, or Walmart,
  • Use flyer apps such as Flipp or Reebee to find weekly deals,
  • Join loyalty programs (e.g., PC Optimum or Air Miles),
  • Buy in bulk at Costco if you have a large household, and
  • Choose generic or store brands over name brands.

Many newcomers in Canada also go to ethnic markets for culturally specific foods at lower prices.

Use Free and Low-Cost Banking Options

Traditional bank accounts in Canada often come with monthly fees, but some banks offer newcomer packages with fee waivers and perks. Here are some of the recommended affordable bank accounts you can open as a newcomer in Canada.

  • Scotiabank StartRight Program,
  • RBC Newcomer Advantage,
  • BMO NewStart Program, and
  • CIBC Welcome to Canada Banking Package.

The services offered by these bank accounts usually include:

  • No-fee banking for 12 months,
  • Credit card without a credit history, and
  • Access to financial advisors.

Online Canadian banks like Tangerine and Simplii Financial offer permanently no-fee chequing accounts, which are great for long-term savings.

Apply for Government Benefits

Depending on their income and family situation, newcomers with Canadian permanent residency status may qualify for various government financial support programs. The federal financial benefit programs you can apply for as a newcomer in Canada include:

  • Canada Child Benefit (CCB): Canada Child Benefit (CCB) offers monthly payments for families with children under 18,
  • GST/HST Credit: GST/HST Credit offers quarterly payments for low- to moderate-income individuals, and
  • Canada Workers Benefit (CWB): Canada Workers Benefit (CWB) provides Financial aid for low-income workers.

The provincial financial benefit programs you can apply for as a newcomer in Canada include some of the following examples.

  • Ontario Trillium Benefit (OTB),
  • BC Climate Action Tax Credit, and
  • Alberta Child and Family Benefit.

Register for these through your Canadian Revenue Agency(CRA) My Account after filing your tax return.

Use Health Services Wisely

Canada has a public healthcare system, but coverage and waiting times vary by province. Essential doctor visits and hospital care are free with a provincial health card, but prescriptions, dental, and eye care are often not covered. To save on healthcare costs in Canada as a newcomer, you can:

  • Apply for your provincial health card immediately upon arrival,
  • Use community health centers that offer free or low-cost care,
  • Look into low-income dental programs or university dental clinics, and
  • Consider private insurance or employer benefits for additional coverage.

Plan for Canada’s Tax Season

Filing taxes in Canada is required and can lead to refunds and benefits. Even if you haven’t earned much, filing a tax return in Canada makes you eligible for credits like the Canada Child Benefit or GST/HST credit. You can get help to successfully plan for Canada’s tax season as a newcomer from:

  • Free tax clinics offered by CRA’s Community Volunteer Income Tax Program (CVITP),
  • Local settlement agencies often help newcomers file taxes in Canada at no cost, and
  • Online tax software like Wealthsimple Tax or TurboTax Free.

Continue Learning for Free

Whether it’s improving your language skills or upgrading your career, investing in free or low-cost education can save money in the long run. Resources for Free Learning that you can use as a newcomer in Canada include:

  • LINC,
  • Coursera, Udemy, and edX offer free or low-cost courses,
  • Library programs offer free computer and language classes, and
  • LinkedIn Learning is free with some library cards.

Building a Good Credit Score in Canada

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Establishing good credit in Canada is significant as it affects your ability to rent a home, get a loan, or even a job. Some of the common things you can do to build your credit in Canada as a newcomer include:

  • Getting a secured credit card or a newcomer credit card,
  • Make small purchases and pay off the entire balance monthly, and
  • Avoid late payments and keep your credit utilization low.

Good credit habits help you avoid costly interest and open doors to better financial products in the future.

Common Mistakes Newcomers in Canada Make That Disrupt Savings

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Newcomers in Canada often unintentionally disrupt their savings through several common mistakes. These mistakes commonly include:

  • Neglecting to build credit in Canada wisely resulting in higher costs for loans and services in the long run.
  • Underestimating the cost of living, particularly in major cities, leading to insufficient budgeting.
  • A lack of proactive budgeting from day one means expenses quickly outpace income.
  • Failing to use free settlement services for job searching and language training results in unnecessary costs.
  • Opting for expensive housing in Canada without exploring shared or suburban options, which significantly drains finances.
  • Purchasing new essentials instead of exploring the second-hand market adds avoidable expenses.
  • Neglecting public transportation in favor of immediate car ownership resulting in high vehicle-related costs.
  • Impulsive grocery shopping without meal planning or comparing prices, causing inflated food bills.
  • Overlooking newcomer banking packages with initial fee waivers, leading to unnecessary charges.
  • Not applying for eligible government benefits leaves potential personal income untapped and,

FAQs

Are There Any Free Entertainment Services for Newcomers in Canada?

Yes, newcomers can find many free entertainment options across Canadian cities. These often include free admission days at museums or art galleries, allowing exploration of culture without cost. Local parks, beaches, and hiking trails provide opportunities for outdoor recreation and enjoying Canada's natural beauty for free. Public libraries frequently offer free programs like movie nights, workshops, and internet access, providing entertainment and valuable resources.

Are There Any Fees I Should Know With Canadian Banks?

Yes, be aware of potential transaction fees, ATM withdrawals outside your Canadian bank's network, and monthly account maintenance. Before contracting with any specific Canadian bank, make sure you compare their plans to find one that suits your usage and affordability needs.