But financial literacy gaps are also concerning for the broader population
Newcomers to Canada are grappling with how the country’s financial system operates and need more help to plug gaps in their knowledge.
A new survey from TD shows that many newcomers feel held back by a lack of financial knowledge and that there’s a significant gap between the financial support newcomers need and what they actually receive.
The survey polled both newcomers and the general Canadian population to better understand their financial experiences, needs, and challenges. It found that 55% of newcomers said managing their finances in Canada has been difficult, mainly due to a lack of familiarity with how Canada’s financial system works. This issue affects newcomers across all age groups, income levels, and countries of origin, even those with a solid background in financial literacy.
Four in ten (38%) newcomers said they have little to no understanding of Canada’s banking system or how to manage their money, compared to 25% of the general population, and 51% of newcomers reported little to no knowledge of investing in Canada (vs. 35% of Canadians overall).
Newcomers are also less likely to understand the Canadian economy - 41% of newcomers said they don’t compared to 26% of the general population.
“Starting life in a new country is exciting, but it comes with pressure, especially when it comes to money,” says Janice Farrell Jones, SVP of Everyday Banking, Savings & Investing at TD. “From understanding banking services and budgeting for daily costs, to supporting family back home, newcomers have a lot on their plate. This research shows why it’s so important to provide better financial education and support tools that help newcomers feel confident and informed.”
But newcomers aren’t the only ones feeling the stress. The survey also found that financial anxiety is high across the board, but it’s amplified for newcomers:
- 76% of newcomers (and 68% of Canadians) fear making a financial mistake.
- 35% of newcomers (and 31% of Canadians) feel judged or embarrassed when seeking financial advice.
- 56% of newcomers (compared to 44% of Canadians) say they don’t feel financially comfortable in Canada.
When asked about their top financial priorities, newcomers cited:
- Preparing for financial uncertainty (40%)
- Learning how to invest effectively (37%)
- Saving for retirement (36%)
- Becoming debt-free (32%)
Half of all newcomers polled said they’re interested in starting a business in Canada, but 62% don’t feel well-informed about the financial products available to help business owners, pointing to another area where support is needed.
“Financial confidence is critical to building a new life,” Farrell Jones added. “When newcomers can manage their money, build wealth, and pursue business opportunities, it benefits not just them, but all of Canada.”
Farrell Jones says banks and other financial services firms should collaborate to plug the knowledge gaps.
“We can’t do this alone,” she says. “There’s an opportunity for the entire financial sector, and corporate Canada as a whole, to help newcomers succeed. An inclusive financial system isn’t just good for individuals, it’s essential to the long-term strength and resilience of our economy.”
