Moving to Canada marks the beginning of an exciting new chapter—one filled with opportunities and hope, but also financial uncertainty. Your first year may come with unexpected expenses, from setting up in a new home,managing high housing costs, to limited access to credit and the challenge of affording daily essentials.
So here is an easy-to-follow guide designed specifically for newcomers in Canada to help you manage your money during your first year and beyond.
1. Open the right bank account
Within days, or even before arrival, open up a Canadian Bank account. Banks like TD, CIBC and BMO offer a newcomer banking package with no fee accounts for up to 24 months.
– Bringing an original ID such as a passport or a PR (Permanent Resident) card with a proof of address is a way to get to the next step.
– Choosing a free checking account is the simplest way to avoid any additional costs.
– Opening an account with early insurance secures access to your funds and starts building your relationship with Canadian banks faster.
2. Understand and build your credit score
Canada’s economy revolves around credit. Renting an apartment, securing a phone plan, buying a car and even a job background can all include a credit check.
So here’s how to build your credit score:
– Apply for a newcomer credit card, which can be offered alongside a checking account.
– Pay your balance in full each month to avoid interest and boost your credit score.
– Use your credit responsibly (such as keeping your balance under 30 per cent of your limit) and avoid late payments.
3. Create a budget
A budget helps you see where money goes and where you can save. Canada’s Financial Consumer Agency of Canada (FCAC) offers a helpful guide to assist in categorizing expenses into needs and wants, tracking daily spending on goods and services like coffee or public transit, and setting financial goals.
You can try out this framework to see if it helps:
– 50 per cent needs: rent, groceries, transit, utilities
– 30 per cent wants: entertainment, dining out
– 20 per cent savings: emergency fund, debt repayment
This framework provides structure, but it can also be adjusted. For instance, you might choose to devote more of your earnings towards your savings if you’re planning for immigration-related costs such as permanent residency application fees, settling-in expenses, or supporting family members abroad.
Financially, your first year in Canada is foundational. By opening the right bank account, building credit, budgeting well and learning the system, you’re setting yourself up for long-term success. It may feel overwhelming, but with tools, information and community support, you’re building more than stability. You’re building security. You’ve already made the biggest step by moving here. Take control of your money with confidence.