Financial security requires better understanding of how the system works.
Canadian newcomers may face significant challenges to their financial security, with a lack of understanding playing a key role in financial struggles.
According to Interac Corp., 61% of newcomers feel confident financially when they first arrive in Canada but as they grapple with the economic realities of living and working in Canada that confidence slumps to just 31%.
Most of those who took part in the Toronto-based finance firm’s research (85%) revealed at least one barrier that has impacted their financial security, a disproportionate response compared to the wider population (58%).
The firm says that this shows that tailored financial advice for newcomers is needed, to help them navigate the Canadian financial system and build their own financial security. The basics of banking in Canada and budgeting tools are among the most needed, especially as many newcomers may not have gained this kind of knowledge in their home country.
"Newcomers are calling for tailored support, with 54% believing that financial resources should be designed by newcomers," said Lauren Mostowyk, Head, Integrated Marketing & Communications at Interac. "This is why we've focused on providing comprehensive support systems through our partnerships with Credit Canada and ACCES Employment. These collaborations provide mentorship from experienced newcomers and free access to a tailored blend of resources, so we can help empower newcomers to build a strong financial foundation.”
But the requirements for those making a new life in Canada is more than simply tools. Mentorship is seen as a major benefit to help with challenges such as navigating language barriers (89%), understanding Canadian currency (86%), and avoiding financial scams (83%). Mentors who have personal experience of coming to Canada are particularly beneficial.
