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:

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.

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.

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.

Two reasons to save:

How can I save money?

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