How Newcomers can Save Money in Canada
Life in Canada may bring many new experiences and challenges, including managing day-to-day expenses.
As you adjust to the Canadian lifestyle, finding ways to manage expenses and save your money may help you feel more comfortable and in better control. From everyday banking to household costs, small choices may add up over time. Here are a few ideas that can help you save as you begin this new chapter.
Two reasons to save:
Building savings is a part of financial well-being[1] for all Canadians, including those new to the country. There are many reasons why setting money aside can be helpful. Here are two:
- Planning for the future: Whether it’s buying a home, a car, or preparing for retirement, saving[2] can be a helpful step toward achieving your long-term financial goals and dreams[3].
- Handling the unexpected: Life can be unpredictable, and having money set aside in a savings account[2] can provide a safety net for unexpected expenses like urgent travel to your home country, car repairs, medical emergencies, or changes in employment.
Here’s the good news: by making saving money a habit, you may begin to feel more prepared for both planned milestones and unforeseen challenges.
How can I save money?
Saving money starts with a clear plan. Here are a few tips that may help you build your savings over time:
- Set a budget and track expenses: Understanding where your money goes is an important step in managing your finances. By setting a budget and keeping track of your spending, you can identify areas to save. Budgeting apps and tools, such as the TD MySpend App[4], can make this process easier.
- Make the most of discounts and offers: Smart shopping may also help you save money. Look out for special promotions, discounts for newcomers[5], and seasonal sales to help better manage your budget.
- Explore savings and investment options: Choosing the right place to keep your money can help it grow over time. There are various savings and investment options designed to support your financial goals, so consider what works best for your situation.
Here are a few savings options to consider:
- Savings Accounts[6]: While chequing accounts are useful for daily transactions, a savings account typically offers interest on your deposit, which may help your money grow over time.
- Registered Plans: These are savings and investments accounts registered with the federal government and offer tax benefits. We will be discussing three different registered accounts here. Each account comes with its own eligibility requirements, rules, and conditions; you can learn more about these requirements by clicking on the link of each account type below.
- Tax-Free Savings Accounts (TFSA)[7]: A TFSA can allow you to earn interest on qualified investments tax-free, making it a flexible option for both short-term and long-term savings.
- First Home Savings Accounts (FHSA)[8]: If you’re planning to buy your first home, an FHSA can help you save for a down payment. Eligible contributions are tax-deductible, and qualifying withdrawals are tax-free. You can contribute up to $8,000 per year, with a lifetime limit of $40,000.
- Registered Retirement Savings Plans (RRSP)[9]: Designed for long-term savings, an RRSP allows you to set aside money for retirement while deferring taxes. Eligible contributions are tax-deductible, which may help lower your tax bill.
Please speak to a tax professional for more information with respect to your individual tax situations.
To discover more tips and learn how your savings could grow over time, check out TD Calculators and Tools. These resources can help you plan and make informed financial decisions.
While adjusting to life in Canada, a good savings strategy may help you feel more secure and confident. The right tools and financial habits may also make it easier for you to manage expenses, work toward your financial goals, and feel more in control of your financial future.
Why Choose TD?
150 years helping Canadians:
TD has a proud history of delivering financial solutions to Canadians for more than 150 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.
With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.
TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.
Ready to Bank?
Learn more about TD New to Canada Banking Package today. Book an appointment to talk with a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.
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