Moving to a new country can offer a wealth of opportunities, but it can also come with its own set of bumps in the road, like learning how to navigate a new financial system. TD bank recently did a new study that showed nearly half (45%) of new Canadians said they didn’t know where to start when it came to their finances in their new home of Canada. Yet almost nine in ten (88%) consider it a top priority to have established good financial standing in their first year after coming to Canada.
To get on the right financial foot, Associate Vice President at Everyday Banking TD Canada Trust, Shirley Malloy has some tips to help unpack the banking basics!
- Don’t skip banking 101: As a newcomer in a new country, take the opportunity to ask questions about banking in Canada while addressing your immediate banking needs.
- Learn the building blocks: Your credit history from another country is not considered when establishing credit in Canada. That’s why it’s important practice good financial habits right from the beginning, like paying all bills on time and in full. Setting up pre-authorized debits to pay credit card and other bill balances each month is a simple and effective way to ensure payments are never missed and your credit rating continues to improve.
- Cut the jargon: There are plenty of savings vehicles that make finances easier for Canadians, but you can’t take advantage of what you don’t understand. An advisor can explain how things like a Registered Retirement Savings Plan (RRSP) or Registered Education Savings Plan (RESP) can help you maximize saving for the future.
- Practice makes perfect: Like many newcomers, you may face compressed timelines to reach your financial goals. For example, in the first five years, you may plan to buy a home, while saving for your child’s education and retirement. An advisor can help build a plan for the future to address competing priorities that works for your financial reality.
Everyone has different financial needs and priorities, so TD Canada Trust encourages newcomers to come in and talk to them about their personal goals, whether its buying a car, a home or saving for their children’s future education.
For more information visit www.tdcanadatrust.com/newtocanada
Money Talk for Newcomers (CNW Group/TD Canada Trust)