Over half of newcomers struggle with managing money and navigating Canada's financial system
More than half of newcomers to Canada say they struggle to manage their finances after arrival, with many citing limited understanding of the country’s financial system as a core challenge.
In a new survey by TD, 55 percent of newcomers reported difficulty handling their finances, exposing gaps in financial knowledge that may impact long-term stability and opportunity.
Among those polled, 38 percent said they had little to no understanding of the Canadian banking system and how to manage their money, compared to 25 percent of the general population.
The gap widened when it came to investing, where 51 percent of newcomers reported limited knowledge versus 35 percent of other Canadians.
For understanding the Canadian economy, 41 percent of newcomers said they lacked clarity, compared to 26 percent of the general population.
Despite this, many newcomers appear motivated to build financial futures.
Half expressed interest in starting a business in Canada, yet 62 percent said they were not well informed about the financial products available to support business owners.
Top financial goals included being prepared for economic uncertainty (40 percent), investing effectively (37 percent), saving for retirement (36 percent), and being debt free (32 percent).
The survey also found that financial anxiety spans both newcomers and the wider Canadian population.
Fear of making a financial mistake was reported by 76 percent of newcomers and 68 percent of other Canadians.
Feeling embarrassed or judged when seeking financial advice affected 35 percent of newcomers and 31 percent of the general population.
Just over half of newcomers (56 percent) and 44 percent of Canadians overall said they do not feel they have enough money to live comfortably.
“Building a life in a new country can be both exciting and overwhelming,” said Janice Farrell Jones, SVP, Everyday Banking, Savings & Investing at TD.
She noted that newcomers often face pressure to adapt quickly, manage their finances, learn about Canadian banking products, budget for living costs and future goals, all while supporting family members abroad.
She added that the research underscores the importance of improving financial education and support for newcomers.
“This important research highlights the critical need to provide enhanced financial education, tools and resources,” she said, so that newcomers can feel confident, make informed decisions, and succeed in Canada.
Farrell Jones also said, “Financial confidence is a key part of the journey for those who are looking to build their lives in Canada.”
She noted that when newcomers are able to establish security, grow their wealth, and explore entrepreneurial opportunities, it contributes to a more resilient and competitive country.
She added that immigration continues to be a vital economic driver.
