You’ve taken a big step in moving to Canada and how you manage your money during your transition to your new country can be daunting. Here are some tips to help you as you arrive and as you get settled.
Open a High Interest Savings Account
You’ll need a chequing account for your main banking needs (paying your bills, shopping for groceries), however opening a savings account at the same time is a great best practice.
Why it’s important:
Earn interest: While you’re deciding where to live, to buy or to rent, your money could be earning interest.
Flexibility: Our savings accounts allow you to access your funds any time you need them
Build your savings: You can easily add to your savings by setting up a regular transfer from your chequing account
Once you have settled, now it is time to work with your advisor to talk about your longer term goals, like buying a home, your children’s education and even your retirement.
Setting goals is valuable, as it lets you stay in control of your finances and your life. Some things to consider when discussing your goals:
Buying a home: You can use the funds invested in a Retirement Savings Plan (RSP) towards the down payment of your first home. And contributions made to a RSP are tax-deductible.*
Your children’s education: Students are required to pay tuition fees for post-secondary studies, which can range between $2,500 and $8,000 a year. By setting up a Registered Education Savings Plans (RESP), you can benefit from various Government grants and your savings will grow, tax-deferred.
Your retirement: Though this may seem far away, it’s never too early to start contributing regularly
Make a Financial Plan
Once you know what your goals are, you must actively take steps to achieve them. These steps can help set you up for success:
Start right away: Time flies, so when it comes to saving for your future, it is best to start as soon as you can. It’s never too late to start saving no matter how young or old you are.
Contribute regularly: Any contribution to your savings counts. Try setting up bi-weekly contributions for consistency. Over time, as your income increases, you can increase how much you contribute.
Track your goals: At the end of the year, you should review how you measured up to your goals to help guide future decision making and goal setting.