The ABCs of financial literacy for newcomers: Becoming familiar with Canada’s financial system is important for a number of reasons

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The ABCs of financial literacy for newcomers: Becoming familiar with Canada’s financial system is important for a number of reasons
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When you’re busy moving countries, the main things on your mind are work permits, permanent residency status, and finding a job and a place to live. If you’re a student, you’d also concern yourself with study permits and college applications.

“Some of my clients have been surprised by the Canada Pension Plan and Employment Insurance deductions and taxes, so it is best to be aware of them. Knowing how much you will take home after taxes and deductions will help you determine how much you can afford for housing and your other living expenses,” said the financial planner.Credit cards, lines of credit, loads, and investments, are another important part of financial literacy.

“At times, mortgage companies can use international credit reports to confirm you paid your bills on time in your home country. However, not all countries use reports like ours, which can make it difficult. It is best to get started building credit right away and make sure your debt payments are made on time.”

In Canada, there are three primary sources of retirement income: government pensions and program, workplace pensions, and personal savings. Finally, it might be useful to learn about the different retirement savings accounts in Canada, such as the Registered Retirement Savings Plan or RRSP and Tax-Free Savings Account or TFSA. “ can help boost your retirement savings.”

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