Survey reveals why many newcomers to Canada worry about their finances
A new survey released by TD reveals that a significant majority of newcomers to Canada, 76% of those polled, fear making financial mistakes. The research underscores an information gap that may be hindering newcomers from achieving their financial goals and establishing a successful life in Canada.
The survey, conducted among both newcomers and the general Canadian population, aimed to uncover financial needs, barriers, and opportunities. It found that 55% of newcomers polled reported difficulty managing their finances since arriving in Canada. A primary challenge identified was understanding Canada’s financial system, a hurdle for all demographics regardless of age, income, country of origin, or general financial literacy.
Understanding the financial landscape
Key findings illustrate this knowledge gap: 38% of newcomers reported little to no understanding of the Canadian banking system, compared to 25% of the general population. Similarly, 51% of newcomers had limited understanding of investing money in Canada, versus 35% of the general population. Furthermore, 41% of newcomers polled understood little to nothing about the state of the Canadian economy, compared to 26% of the general population.
Janice Farrell Jones, SVP, everyday banking, savings and investing at TD, emphasized the dual challenge newcomers face. “Building a life in a new country can be both exciting and overwhelming,” she stated. “Newcomers face the pressure of adapting to a new way of life in Canada, while quickly getting on the right foot financially.” She highlighted the need for enhanced financial education, tools, and resources to boost newcomers’ confidence.
Shared anxieties and entrepreneurial spirit
While newcomers showed lower confidence in navigating the Canadian financial landscape, both groups shared financial anxieties. The survey noted that 68% of the general Canadian population fear making a financial mistake. Additionally, 56% of newcomers and 44% of the general population felt they did not have enough money to live comfortably in Canada.
Despite these concerns, the survey also revealed an entrepreneurial ambition among newcomers, with 50% interested in starting a business in Canada. However, 62% of these aspiring business owners felt uninformed about available financial products.
What steps do you think are most crucial for newcomers to confidently navigate Canada’s financial system? Share your insights in the comments below.
