Due to Covid-19 the information contained in this website related to course structures and formatting may have changed.
Support Your Community Join Us Favourites FAQ
Write a Review
Claim school page

Living in Canada: How to Prepare Yourself Financially

Living in Canada: How to Prepare Yourself Financially
August 11th, 2022

One of the challenges you’ll face when arriving in Canada will be the initial expenses. 

You’ll need a place to live, you’ll have to buy domestic items, and also make a financial plan for the future. In this post, we’ll help you start preparing yourself financially to move.

First of all, how does the Canadian currency work?

The official currency is the Canadian dollar. It includes banknotes and coins, with different names and values. Nickel (5 cents), dime (10 cents), quarter (25 cents), loonie (1 dollar), and toonie (2 dollars).

Organize your expenses

In order to reach your financial goals and live with the budget you have, it is important to organize and prepare yourself for expenses other than the ones you’re used to.

Open a bank account 

It is indispensable to open a bank account as soon as you arrive in Canada. There are two types of accounts: chequing and savings. Debit cards are used to access your account and for purchases.

What's nice about them is that banks offer customized services for people who have just arrived in the country, available in different languages and with discounts (yay!$$$).

Credit cards

Another purchase option is through credit cards. They are important for building a positive payment history. That's why it's important to pay your bills only from the budget you have, and always within the deadline, to avoid interest for late payments.

Taxes and fees for residents

Residents of the country pay taxes for government programs and public services, such as education and health. If you’re residing in the country, you must return an amount of your income every year, normally before April 30th, to the “Canada Revenue Agency”.

By paying your taxes, you can have access to some government benefits. Self-employed workers must also pay tax. In most jobs, taxes are deducted from the salary.

Sending money to your home country

You can send money back to your country electronically or by money order. The exchange can be made at a bank, at the post office, or at a broker or private service. In this case, it is indispensable that you research and check if the service and the company are trustworthy before sending the money.

Financial Planning

When staying in the country, it is important that you organize yourself financially, make investments, and have a financial reserve. In Canada, some options for you to plan for the future are: Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSPs), and Tax-Free Savings Account (TFSAs).

With this information in hand, you can take the first step towards organizing yourself financially in Canada.

Latest news

See all

Important vaccination and medical records to enter Canada

It is important to mind your health before going to Canada.

Read more

How to work as a team and ask for help?

🤝 An excellent way to build networking and make new friends is working with others by joining a team to complete a project.

Read more

What is the Post Graduation Work Permit (PGWP) and How it Works?

The Post Graduation Work Permit (PGPW) is a path that many foreign students take in their journey to immigrate in Canada.

Read more