3 steps for newcomers’ financial success
Taking steps towards a bright financial future in Canada
If you are new to Canada, you know there is a long list of to-dos to set yourself up for success. For many new Canadians, they start thinking about what they need to do long before they arrive — including establishing their finances. In fact, we found in recent research (Boston Consulting Group, 2018) that as many as 80 per cent of newcomers identified opening a bank account as a priority before even arriving in Canada.
With November being Financial Literacy Month, here are three steps you can take as a new Canadian to set yourself up for financial success:
Start saving
While you may not be eligible for all investment options within your first year in Canada (including registered retirement savings plans), there are many ways you can start saving and investing right away. A tax-free savings account (TFSA) is one great way to get started. Check out this article from March 2018 for additional information on TFSAs.
Build your credit history
For new Canadians, one of the best ways to build your financial foundation is by building a credit history. Credit can be used to help manage everyday finances such as signing up for a mobile phone, buying groceries and setting up household utilities. Paying your balance off on time, using the right credit (borrowing) solutions for your needs and checking your credit score regularly are all part of the proactive measures you can take to build your credit history.
Starting with the right credit products and behaviours will help when it comes time to make bigger purchases like a car or a home.
READ MORE: Building your credit history
Meet with a banking professional
Understanding how banking, credit and investing work in Canada can seem overwhelming. Meeting with a financial advisor is one way to get more information (for free!) and get started on the right path for your personal financial situation. Plus, they may be able to connect you with other professionals including tax specialists who can provide advice.