Financial Planning & Resources

You can take steps to plan financially for life in Canada. These steps may include budgeting, understanding the cost of living, setting up a bank account, building credit history, understanding taxes, assessing insurance needs, saving for emergencies, retirement planning, and seeking financial advice and loans.

Financial planning is important for you when you are re-establishing your career in Canada for several reasons:

  1. Financial stability: Immigrant professionals often face initial challenges in finding suitable employment opportunities upon arrival. Effective financial planning helps them manage their finances and maintain stability during this transition period, ensuring they can meet their basic needs and cover expenses while seeking suitable employment.

  2. Cost of living adjustment: Canada may have a higher cost of living than where an immigrant lived before arrival. Financial planning allows immigrants to understand and adjust to the new cost of living, including housing, transportation, healthcare, education, and other essential expenses.

  3. Credential recognition: Immigrants may need to undergo the process of having their foreign credentials recognized in Canada. This can involve additional costs, such as evaluation fees, exam fees, and educational or training programs. Financial planning helps immigrants allocate funds for these expenses and plan for any potential career advancement or retraining required.

  4. Financial obligations: Immigrants may have financial obligations in their home country, such as loans, mortgages, or supporting family members. Effective financial planning ensures these obligations are accounted for and managed appropriately while re-establishing their career in Canada.

  5. Emergency funds: Having a financial plan allows immigrants to establish emergency funds to cover unexpected expenses or periods of unemployment. This provides a safety net during challenging times and reduces financial stress.

  6. Retirement planning: Financial planning is crucial for immigrants to save for retirement early in their careers. Planning for long-term financial goals ensures that immigrants can secure their financial future and build a comfortable retirement.

  7. Tax planning: Understanding the Canadian tax system and planning for tax obligations is essential for immigrant professionals. Financial planning helps immigrants navigate tax requirements, take advantage of available deductions and credits, and ensure compliance with tax laws.

  8. Building credit history: A healthy credit history in Canada is important for accessing loans, mortgages, and other financial services. Financial planning helps immigrants understand credit-building strategies and maintain good financial habits to build a strong credit profile.

Financial Literacy

Financial literacy refers to the knowledge and skills required to manage one's finances effectively, make informed financial decisions, and understand the intricacies of the financial system. In Canada, financial literacy is very important. First, navigating the Canadian financial landscape, including banking systems, taxation, and investment options, can vastly differ from their home countries. Immigrant professionals must understand these nuances to make sound financial choices and optimize their financial well-being. Second, being financially literate helps immigrants avoid potential pitfalls like debt accumulation, fraud, and exploitation. It empowers them to build a stable financial foundation, save for their future, and achieve their long-term goals, such as homeownership and retirement. Moreover, financial literacy fosters economic integration and participation in the Canadian economy, ultimately contributing to their overall success and prosperity in their new home country.

You can acquire financial literacy through a variety of means:

  1. Online Resources: There are numerous online resources, including websites, blogs, and videos, dedicated to teaching financial literacy. They cover topics such as budgeting, saving, investing, and retirement planning. Websites like the Financial Consumer Agency of Canada (FCAC) and the Canadian Foundation for Economic Education (CFEE) offer comprehensive guides and tools.

  2. Workshops and Seminars: Many organizations and community groups offer free or low-cost financial literacy workshops and seminars. These events provide practical insights and guidance on managing finances in Canada. Immigrant settlement agencies, local libraries, and community centers often host such programs.

  3. Government Programs: The Canadian government promotes financial literacy through initiatives like the FCAC's "Your Financial Toolkit" and the Canada Revenue Agency's (CRA) tax information sessions. These programs offer valuable information tailored to newcomers.

Finding Financial Advice

Financial advisors can help immigrant professionals understand saving, investing, budgeting, and taxes in Canada. Research which institution is best for your banking and financial needs, then book an appointment with a financial advisor to discuss your situation and ask questions. Financial institutions tend to provide special accounts or options for newcomers. The following examples from financial institutions are a good starting point:

Financial Advice Resources:

Money Smart Program

The Money Smart program, offered by The Immigrant Education Society, is a free resource that can support you in your financial decision-making, whether that is saving for your child’s education, buying a home or vehicle, or understanding the Canadian banking system.

The Money Smart program offers free access to financial one-on-one coaching and workshops.

Money Management
Check out the Money Management resource, which will help you develop a clear understanding of how to be more fiscally responsible. Having money management skills is about having the knowledge and confidence to make good financial decisions and knowing how to work and plan toward your goals. This guide can help you understand Canada’s economic system. Knowing the basics will help you get started and develop positive habits that will lead to ongoing financial success.

YouTube

Help with Filing Taxes

Tax clinics are valuable resources for immigrant professionals in Canada. These clinics assist in understanding the Canadian tax system, preparing and filing tax returns, and maximizing available tax benefits and credits. They offer accessible and affordable support, often in multiple languages, making them helpful for individuals with limited resources and language barriers. Tax clinics also contribute to building financial literacy and provide opportunities for networking and community engagement. By utilizing these clinics, immigrant professionals can confidently navigate the tax system, fulfill their tax obligations, and optimize their financial situation, leading to greater financial stability and integration into Canadian society.

Free Tax Clinics are hosted through community organizations. Volunteers complete income tax and benefit returns for eligible individuals. Eligibility criteria include having a modest income and a simple tax situation. See About Free Tax Clinics on the Government of Canada website for eligibility. 

Web-based or computer applications are also available to support professional newcomers in filing their own income tax and benefit returns. TurboTax and Wealthsimple Tax provide step-by-step guidance through the process of filing taxes.

Loans for Immigrant Professionals

Loans provided in Canada for immigrant professionals are specifically designed to help you start or re-establish your career in Canada. These loans alleviate financial burdens, provide access to necessary resources, and support career integration efforts. By assisting with credential recognition, skills upgrading, relicensing, and entrepreneurship, loans facilitate the transition and re-establishment of immigrant professionals in their chosen careers in Canada.

Loans are offered to immigrant professionals in Canada for the following reasons:

  • Credential Recognition: Many immigrant professionals face the hurdle of having their international education and qualifications recognized in Canada. The costs associated with assessment, accreditation, and professional licensing can be significant. Loans help cover these expenses, allowing immigrants to navigate the credential recognition process and establish themselves in their respective professions.

  • Skills Upgrading and Training: Immigrant professionals may need to update their skills or undergo additional training to meet Canadian standards or industry requirements. Loans can finance career-related courses, workshops, certifications, or educational programs to enhance their knowledge and competencies. This helps immigrants bridge skill gaps and increase their employability in the Canadian job market.

  • Relicensing and Certification: Certain professions in Canada require immigrants to obtain new licenses or certifications to practice legally. Loans can assist in covering the costs associated with licensing exams, professional membership fees, and other certification requirements. By providing financial support, these loans enable immigrant professionals to meet the necessary regulatory standards and resume their careers in Canada.

  • Business Start-Up or Self-Employment: For immigrant professionals interested in entrepreneurship or self-employment, loans are available to help them start or expand their businesses. These loans can cover start-up costs, working capital, equipment purchases, marketing expenses, or other business-related needs. By offering access to capital, immigrant professionals can leverage their skills and expertise to create employment opportunities and contribute to the Canadian economy.

Programs that Offer Loans for Immigrants:

  • Service-Bredin Microloans for Professional Newcomers

    Service Credit Union and the Bredin Centre offer low-interest loans of up to $15,000 to support internationally educated professionals with costs related to gaining Canadian licensing or training.

  • Windmill Microlending

    Windmill is Canada’s largest microlending charity for skilled immigrants and refugees, offering up to $15,000 to applicants to pay for credentials, licensing, retraining, or professional development needed to achieve career success in Canada. Along with the loan, Windmill offers mentorship and coaching services that target soft skills and financial planning.

    Download the Skilled Immigrant Career Success Guide from Windmill to find helpful information on navigating the licensing/credentialing process and understanding different types of loans (e.g., student, career loans, or traditional credit lending). 

Financial Dangers and Fraud

As you settle in Canada, be aware of potential financial dangers and fraud that can impact (or even target) immigrants. Some examples include:

  • Debt Accumulation

    If credit cards or loans are mismanaged, you may accumulate debt that becomes difficult to repay, leading to financial stress and negative consequences on credit scores.

  • High-Interest Rates

    Some credit cards or loans may have high-interest rates, especially if you have limited credit history or lower credit scores. This can result in increased repayment costs and financial burdens.

  • Identity Theft

    Immigrants may be vulnerable to identity theft, where scammers use personal information to open fraudulent credit cards or loans in their name. This can negatively impact credit ratings and lead to financial losses.

  • Predatory Lending

    Unscrupulous lenders may target immigrants, offering loans with exploitative terms and conditions, such as high fees or hidden charges. It's crucial to carefully read and understand the terms before accepting loan offers.

  • Loan Modification Scams

    Scammers may pose as loan modification or debt relief companies, promising to reduce or eliminate debts. They often charge upfront fees but provide little or no assistance, worsening the financial situation.

  • Phishing Scams

    Immigrants can be targeted by phishing scams where scammers impersonate banks or financial institutions, attempting to obtain personal and financial information. These scams can lead to identity theft or unauthorized access to accounts.

  • Employment-Related Scams

    Immigrants may be targeted by job scams that promise lucrative opportunities but require payment for fake job offers or work permits. It's important to research and verify the legitimacy of job offers and consult official channels.

  • Immigration Scams

    Scammers may pose as immigration consultants, assisting with visas, work permits, or citizenship applications. They exploit immigrants by charging excessive fees or providing false information. It's crucial to use authorized and reputable immigration representatives.

Resources on Fraud:

  • Money and Finances

    The resource page from the Government of Canada informs individuals about managing money, debt and investments, planning for retirement and protecting themselves from consumer fraud.

  • Protecting Yourself from Immigration Fraud

    The webpage of the Government of Canada informs individuals about protecting themselves from fraud and scams related to immigration and settlement in Canada. It offers resources, guidance, and warning signs to help individuals recognize and avoid fraudulent activities and protect their personal and financial information.

  • Fraud Targeting Newcomers

    The webpage provided by the Government of Canada is tailored specifically for newcomers and provides information on protecting themselves from fraud and scams in the immigration and settlement process. It offers resources, tips, and warning signs to help newcomers navigate safely and securely through their immigration journey in Canada.

  • The Immigrant Education Society (TIES)

    TIES provides a step-by-step guide to managing your money in Canada, as well as the Money Smart program.

Wills

A will is a legally binding document that outlines an individual's wishes regarding the distribution of their assets and belongings after death. It also allows them to name a personal representative to carry out these wishes and appoint a guardian for any minor children. For newcomers to Canada, having a will is particularly important for several reasons. First, the Canadian legal and financial system may differ significantly from their home country, and a will ensures that their assets are distributed according to their preferences in this new environment. Second, a will can help mitigate potential complexities and conflicts among family members and loved ones during a time of grief, providing clarity and peace of mind. Additionally, for those who may have limited familiarity with Canadian laws and customs, creating a will with the guidance of a legal professional can ensure that their wishes are accurately represented and legally enforceable, helping them secure their financial legacy in their adopted country.

Resources on Wills:

Insurance

In Alberta, there are several types of insurance that newcomers to Canada should consider obtaining. These include health insurance, auto insurance, home or rental insurance, and life insurance. Health insurance is essential to access healthcare services in Canada, as it covers medical expenses, doctor visits, and hospitalization costs. Auto insurance is mandatory for drivers in Alberta and provides coverage in case of accidents or damage to your vehicle. Home or rental insurance protects your property and belongings from unexpected events like theft, fire, or natural disasters. Finally, life insurance provides financial security to your family in the event of your passing, helping them cover expenses and maintain their quality of life. For newcomers, having these types of insurance is crucial because it provides peace of mind, financial protection, and compliance with legal requirements, ensuring a smooth and secure transition to life in Canada.

Here are examples of organizations and resources in Alberta for different types of insurance:

  1. Health Insurance:

  2. Auto Insurance:

  3. Home or Rental Insurance:

    • Insurance Brokers Association of Alberta (IBAA): IBAA can connect newcomers with insurance brokers who can help them find suitable home or rental insurance policies tailored to their specific circumstances.

    • Major insurance companies: Similar to auto insurance, many prominent insurers offer home and rental insurance in Alberta, including providers like Aviva, SGI Canada, and Wawanesa.

  4. Life Insurance:

    • Licensed insurance agents and brokers: Numerous insurance agents and brokers operate in Alberta, helping individuals assess their life insurance needs and find appropriate policies.

    • Canadian Life and Health Insurance Association (CLHIA): CLHIA offers resources and information about life insurance options and considerations for newcomers in Canada.

Extra Financial Resources

Financial resources provided by the Canadian government for immigrants offer several benefits, aiming to support newcomers as they settle and establish themselves in the country. These benefits contribute to immigrants' successful integration into Canadian society and the workforce.

  • Financial Assistance for Basic Needs:

    Government programs, such as the Resettlement Assistance Program (RAP) and the Immigration Loan Program, provide financial assistance to cover immediate needs like housing, food, and clothing, helping newcomers establish a stable foundation.

  • Healthcare Coverage:

    Immigrants and refugees in Canada are eligible for public healthcare coverage through provincial or territorial healthcare systems, ensuring access to essential medical services without significant out-of-pocket expenses.

  • Education Opportunities:

    Alberta offers free public education for school-aged children, ensuring that immigrant families can access quality education for their children. See The School System in Alberta for more information

  • Language Training:

    Government-funded language programs, such as the Language Instruction for Newcomers to Canada (LINC) and English as a Second Language (ESL) programs, help immigrants improve their language skills, which is crucial for employment and integration.

  • Child Benefits:

    Programs like the Canada Child Benefit (CCB) provide financial assistance to families with children, helping reduce the financial burden of raising a family in a new country. See Childcare for more information and resources.

  • Income Support:

    For those facing economic hardships, social assistance programs are available to provide temporary financial support until individuals or families can become financially self-sufficient. See Alberta Income Support for services and information.

  • Subsidized Housing:

    Some provinces offer subsidized housing for low-income individuals and families, including immigrants, to ensure affordable and safe living arrangements.