Navigating financial health in Canada

Credit to Author: Canadian Immigrant| Date: Wed, 14 Aug 2024 03:17:43 +0000

A financial therapist shares her own experiences and stories of clients, and highlights practical tools and strategies to help newcomers address underlying emotions and beliefs impacting their financial journey.

I remember vividly the day we landed in Canada. My parents were filled with hope and trepidation as they embarked on this new chapter of our lives. Back home in Lebanon, the concept of saving for retirement was overshadowed by the immediate need to provide for the family.

When I turned 18, I started to work in the local restaurant and set up my first bank account. I told my dad that I also opened a Registered Retirement Savings Plan (RRSP). Intrigued but skeptical, he questioned why an 18-year-old would be saving for retirement. This was a completely foreign concept to him.

Later, as a therapist, I realized that since we grew up in a war zone, my dad’s uncertainty about the future prevented him from allocating savings toward it. Most people around me coped by adopting the YOLO (you only live once) mindset. I reflected deeply on this and learned how to see it with compassion instead of judgment.

My journey instilled in me a profound appreciation for the importance of financial planning and the transformative power of not just financial knowledge but also therapeutic tools to address the underlying emotions that impact our behaviors.

After spending a decade working in the Canadian financial sector, I realized that as advisors, we were talking financial strategies with clients; when in many cases we needed to dive deeper and explore the emotions and beliefs around money.

After being called a therapist by many clients, I went back to school to become a psychotherapist, and became the first financial therapist in Toronto.

In my practice, I have worked with many newcomers who come with diverse belief systems and mindsets impacted by their country of origin and the systems they belong to. Here are a few cases that highlight the practical tools and strategies to help newcomers navigate their financial journey in Canada.

Story 1: Building credit from scratch

Despite their professional qualifications, a couple from India struggled with the concept of credit and debt, which was not as prevalent in their home country. Debt was frowned upon in their community and they were uncomfortable borrowing money.

We discussed the importance of building a good credit history. They applied for a secured credit card, which required a deposit as collateral and used this for small purchases, paying off the balance in full each month. Over time, their credit scores improved, allowing them to qualify for better financial products. We addressed emotions underlying their fears of debt, recognizing the difference between good and bad debt. This allowed them to work towards setting a goal to buy their first home.

Story 2: Navigating the job market

Despite an impressive resume, a software engineer from Brazil faced difficulties finding employment in Canada.  He was disheartened and anxious about his financial future, being stuck in chronically underearning positions.

We focused on networking and upgrading his skills, as well as strengthening his beliefs about his ability to earn a high income. He joined professional organizations, attended industry events and also enrolled in a certification program to align his skills with Canadian industry standards. These efforts paid off, and he secured a job that matched his expertise.

Story 3: Understanding taxation

A single mother from Syria was overwhelmed by the complexity of the Canadian tax system. She also had little trust in the government given the trauma she endured from her country. I helped her shift her mindset and feelings around taxes, explaining to her where her taxes go (such as education for her kids, facilities such as parks, healthcare,, etc.)

We also discussed the various tax credits and benefits she was eligible for, such as the Canada Child Benefit (CCB). Understanding the various tax credits and benefits she was entitled to provided her with much-needed financial relief and confidence in managing her finances.

Practical tools and strategies

Based on these experiences, here are some tools and strategies to help you navigate financial health in Canada.

Be gentle with yourself. It is important to realize how normal and natural it is to feel overwhelmed when navigating a new financial system. It’s helpful to be gentle with yourself and find easy ways to stay calm before and after making important financial decisions. Helpful activities include spending time in nature, having a warm shower or bath, making some extra space in your schedule for quiet time, or keeping a journal to express your feelings.

Connect with community. It’s always helpful to talk to others who can empathize and share your experiences. Normalize talking about money with others and create personal and professional relationships that you can build and grow to support you around your financial goals and challenges.

Create small and measurable goals.  Building financial confidence is something that happens slowly, by taking small positive steps and rewarding yourself for each important milestone achieved. It’s great to start with a 3-month, 6-month and 1-year plans to support your financial goals. Make your progress visible to keep yourself motivated and inspired.

Embrace the journey. Navigating financial health in a new country is filled with learning and growth. It’s essential to be patient with yourself and seek support when needed. Remember that you are not alone—many have walked this path before you and found success.

With the right tools, strategies, and mindset, you can build a secure and fulfilling financial future in Canada.

Aseel El-Baba is a financial therapist and mental health expert who is blending emotional wellness with financial planning. 

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