Newcomers in Canada are feeling the pinch of cost-of-living challenges, and the situation is particularly severe in B.C., according to a new survey.
More than three out of five (61 per cent) B.C. newcomers say they don’t feel they have enough money to live comfortably, according to the Toronto-Dominion Bank (TSX:TD) survey released last week.
This is the highest among all regions of Canada.
An average of 56 per cent of surveyed newcomers reported feeling cost-of-living pressures compared with 44 per cent for the general Canadian population.
Muhammad Kara, associate vice-president of TD’s New To Canada program, said many B.C. newcomers come with strong educational and professional backgrounds, but adjusting to the Canadian financial landscape can be “pretty daunting.”
“[This is] super important to be aware of in order to meet your financial goals, not only in the current state, but into the future,” said Kara.
“On top of that, if you add in things like the higher cost of living, especially in areas like Metro Vancouver, that truly amplifies the pressure.”
Almost one-third (32 per cent) of B.C. newcomers surveyed reported little to no understanding of the banking system in Canada and how to manage their money, and nearly half (47 per cent) said they have little to no understanding of how to invest money in the country, according to the survey.
Meanwhile, more than half (51 per cent) of B.C. newcomers said it is difficult to manage their finances since arriving in Canada and more than a third (34 per cent) feel embarrassed or judged when seeking financial support or advice.
Despite that, 52 per cent of B.C. newcomers said they are interested in starting or already own a business in Canada, slightly higher than the national newcomer average of 50 per cent.
“Newcomers actually have a lot of ambition, a lot of determination, but the challenge they face is in adapting specifically to the Canadian financial system–it's often very different from the system in their home country,” said Kara.
“So the opportunity here for us is to really overcome this challenge. It's not about the capability; it's about the familiarity.”
He said Canadian financial institutions should work together to make financial knowledge, support and opportunities more accessible to newcomers.
This includes providing multilingual support across multiple channels, forming partnerships with organizations and investing in community-led programs to reach and support newcomers before and after they land in Canada, and offering dedicated banking packages, according to Kara.
“When newcomers feel financially secure, when they know how to save and grow their wealth, put their entrepreneurial energy to work, it'll make the country more resilient, more competitive, more prosperous for all.”
The survey was conducted between Jan. 31 and Feb. 10 among 1,021 newcomers to Canada who arrived within the past 10 years.
