Learn expert tips for Finance Management in Canada as a newcomer through this blog. To begin with, money management in an entirely new country is quite challenging. Sometimes, it is even difficult to cover basic expenditures like grocery or other housing costs. The financial checklist can be a great deal because it covers all sorts of expenses. When you first arrive here, a few essential tasks include opening up a Canadian bank account, getting a Social Insurance Number, building score credit, insurance, etc.
Expert tips for Finance Management in Canada as a newcomer
Before you begin your unique journey in Canada, you must get started with a number of things. You must thoroughly research the province you have chosen to reside in. Get more detailed information regarding the cost of living, schools, job market, and in-demand skills. Apart from this, collect all the relevant and essential documents and finish the paperwork, such as the transcripts or educational degrees. Get your Educational Credential Assessment done and update your CV per Canadian standards.
Once you’re all set to arrive in this new fascinating country, you must follow the detailed tips given below:
Acquire a Social Insurance Number in Canada
Acquiring a Social Insurance Number in Canada is one of the most essential things to do because this confidential number will provide you with the opportunity to work and give you access to several government programs and financial advantages. You will also require this number to open a bank account in the country. Moreover, it is vital to prevent financial fraud and theft. The first week you arrive in Canada is the perfect time to apply for the SIN.
Opening a Canadian Bank Account
Before you begin with this step, you must understand that this country has two types of bank accounts: the Chequing Account as well as the Savings Account. According to other countries, a chequing account is basically a checking or current account. A chequing account is essential for routine transactions, such as grocery payments, phone rent, utilities, gas, transit passes, and other bills.
The Chequing account in a bank lets you have a debit card to withdraw money from ATMs or carry out digital transactions. This account is where you will receive your salary, while the Savings account is where you tend to keep your funds.
If you pursue to open a Canadian bank account, you must have the following:
- Social Insurance Number;
- Two identity documents, including a PR card or Canada’s driver’s license.
You can open your bank accounts in the following financial institutions:
- Online or Digital Banks;
- Traditional Banks;
- Credit Unions; and
- Trust Companies
Typically, banks ask you to pay account fees monthly depending on the account package you opt for. Traditional banks in this country might exempt you from the annual fee in the first year. However, you must meet the preconditions of the newcomer package. In addition, you might also need to pay some fees as an initial deposit.
Developing your Credit Score in Canada for finance management as a newcomer
Financial lenders often evaluate your credibility through your credit score, a three-digit number. This number simply lets the lender know whether you’re capable enough to pay back the money you have borrowed. Therefore, when individuals arrive in this country, they seek to develop a good credit score. Also, one must remember that your previous credit scores in your home country will not contribute anything to Canada. You will have to try harder to develop a good credit score, especially if you don’t have sufficient money to pay for your expenditures.
Having a credit card is one of the chief ways of developing a good score. However, alternatively, you could use cell phone contracts, personal loans, and lines of credit.
Getting an Injury or Illness Insurance
This type of insurance is optional to get help for specific health costs that don’t fall under the provincial health plans, like prescription drugs, dental, or vision. There is another alternative called Disability Insurance, which is essential in the case of illness, accident, or disability that might lead to work loss. However, individuals must review the provincial coverage against significant medical costs.
Filing your Taxes
It is essential to file an income tax return if you reside in Canada for any length of the current tax year. You’ll be able to get rewards that will get your money back if you do this. You can be qualified for numerous advantages, such as the Goods and Services Tax (GST) benefit and the Canada Child Benefit. Settlement agencies can assist you with the initial steps of submitting your income tax return if you require assistance.
Access the following tax software:
- Turbo Tax-Free
- Wealth Simple Tax
- StudioTax
- Adv Tax
- Genu Tax
Save money in Canada as a newcomer for the best finance management
Saving your money through a savings account can be a lifesaver as it could be for a home down payment, vacation, emergency fund, wedding, vacation, or other objectives. The Canadian government launched a special savings account a few years ago, the Tax-Free Savings Account. This will help you save your finances as much as possible each year without tax. In addition, you have the choice to keep different products in your TFSA account. These include GICs, mutual funds, bonds, ETFs, and stocks.
Our immigration representatives at Make Home Canada have immense knowledge related to Canadian immigration. To clarify your doubts or queries, you may write to us at [email protected]
