MONEY & BUSINESS T IP S F OR SE T T L ING IN FA S T E R
How to financially prepare for your winter semester in Canada
O
ver the last few years, there has been a dramatic increase in international students enrolling from South Asian countries such as India – countries known for their mild climates.
Tips to manage your finances
In addition to coming face-toface with a brisk Canadian winter, they may be in for a surprise at the unanticipated expenses that go along with it. In fact, a survey by RBC shows that 42 per cent of international students are overwhelmed when it comes to money and need help, and 41 per cent admit they struggle with creating and maintaining a budget.
One of the most important things is to make sure you know your numbers and cash flow, which will help you stay on track with spending and even save some money. Having a proper budget and tracking your expenses will help provide insight into your spending patterns, keep spending in check and avoid potential student debt.
Unexpected winter expenses
enough money – here are some tips Many international students to help you handle your finances may be unprepared for the frosty successfully: temperatures as they arrive in the middle of a Canadian winter, and • Speak with a financial advisor – one of the first things they should A financial advisor is often a good look to buy is a warm winter coat. starting point when you arrive in Set aside a small budget and save Canada, as opening a bank money by searching for deals account is essential. Financial on resale sites such as Facebook advisors can recommend Marketplace and Kijiji, or visit local accounts that cater to your thrift shops for bargain investment needs and include valuable, pieces. A winter coat is something money-saving features such as no that can (and should) last for years – monthly account fees. A financial and oftentimes you can find items in advisor can also direct you to the new, or nearly new, condition. appropriate banking solutions that will help prepare you for a Students used to warmer climates successful financial future. may not be familiar with central heating (or radiators, for older • Build a credit history – A good residences). Some buildings or credit score is often needed for homes may have this included in many things – from renting to the monthly rent, while others may getting a cell phone or a loan – charge a separate fee which ranges even as a student. Opening a based on usage and time of day. Heat credit card will help to build your is essential in the winter and should credit score, but be sure to pay be built into your monthly budget. off the bill each month to avoid In the middle of winter, heating late payment fees and penalties. costs can climb to over $100/month, and will decrease once spring – and • Enhance your financial literacy – According to the RBC survey, the warm weather – arrives around international students hold April and May. many misconceptions when it comes to finances. For example, Tips for financial success on an 26 per cent know a credit score international student’s budget is important, but don’t know what It’s important to understand and it is, and 58 per cent believe plan for expenses to ensure you have
paying the monthly minimum on a credit card means they don’t pay interest. Check out resources such as the McGill Personal Finance Essentials, a free online program, to learn how to create a budget, manage your finances and save for the future.
Amit Brahme is senior director, newcomer client strategy with Royal Bank of Canada. Visit rbc.com/newcomers or visit a branch near you for help and advice to help you save more and settle in faster.
Helping newcomers explore career & job opportunities Register for free workshops & networking events Support & resources for starting a business SKILLED IMMIGRANT INFOCENTRE Central Library, Level 4 350 West Georgia St. Vancouver, B.C. 604-331-3653 siic@vpl.ca skilledimmigrants.vpl.ca @VPLSiiC
/SkilledImmigrantInfoCentre
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