3 Essential Financial Tips for Filipino Newcomers to Canada
When our visa got approved in 2015, I was over the moon! I was already daydreaming about our new life in Canada—a land of endless possibilities and promises. Even though it was hard to say goodbye to family and friends back home, I was laser-focused on the exciting future ahead. My expectations were sky-high. I mean, what could go wrong in a country with free healthcare, a booming job market, and Tim Hortons at every corner?
Well, here’s the reality check: Many Pinoys arrived in Canada without the proper financial info and end up falling into the all-too-common debt traps here. If you want to get your finances right from the get-go, here are three financial tips to set yourself up for success!
Financial Tip 1. Avoid Credit Like the Plague
I know, I know—this goes against everything you’ve probably heard. From the moment we landed in Canada, I kept hearing, “You need to build your credit!” That translates to, “You need to start using credit cards!” But here’s the thing: back home in the Philippines, most people don’t even have a credit card unless they meet specific income requirements. Many of us didn’t grow up using credit cards, and honestly, I think that’s a good thing! Credit cards are tempting because they make it easy to spend money you don’t actually have.
Many kababayans who move to Canada feel like their life has been upgraded when they get their first credit card, and suddenly, they’re buying things they wouldn’t normally be able to afford. Maybe you’re thinking, “I’ll just be responsible with it.” But according to the 2024 Canadian Consumer Credit Card Report, 55% of Canadian adults have credit card debt—the highest ever! It’s so easy to swipe, swipe, swipe and suddenly be buried in debt.
What to Do Instead?
Does that mean you should avoid credit cards altogether? Not necessarily! If you want to keep your finances in check, use credit cards for some fixed expenses only—like phone bills or utilities. For groceries and daily expenses, stick to cash or debit, just like we do in the Philippines. Trust me, some of our financial habits back home work great here, too!
Financial Tip 2. Say No to Brand New Everything!
I get it. You’ve arrived in a new country, and you want a fresh start. It’s so tempting to buy all-new furniture, clothes, a fancy car, and gadgets to celebrate your new life. And what’s easier than charging it all to your brand-new credit card, right? But listen, if you’re going for the “I deserve this” splurge, you’re setting yourself up for a financial headache.
What to Do Instead?
Good news—Canadians love to get rid of stuff. People here often donate or even throw away things that are still in excellent condition. Before buying brand new, ask family or friends if they have things they’re willing to pass on. And don’t feel bad about using second-hand items; you’re saving money, not settling! You can find amazing deals at garage sales, thrift shops, and on Facebook Marketplace. Sometimes, you’ll even find perfectly good items on the curb for free—especially in the spring and summer. Avoid drowning in debt for “new stuff.” There’s time for that when you’re financially stable. For now, go the budget-friendly route and make your money stretch!
Financial Tip 3. Don’t Send Half Your Income Back Home
Before I moved to Canada, I used to think that money just magically appeared in your wallet—like cash grew on maple trees or something. So, I can’t totally blame our loved ones back home for having the same idea. But what happens when you finally get here? Pera Padala requests start pouring in from relatives back home. I’m talking about “allowance ni pamangkin, birthday gift for Junior, a new phone—preferably an iPhone with the latest model, or si friend asking to borrow a quick ₱20k“—the requests just don’t stop!
No matter how hard you try to explain that life in Canada isn’t easy, they won’t fully understand until they’ve walked in your snow boots! Social media makes it worse—when they see photos of you all bundled up with snow around you or posing in front of frosted trees, they assume you’re living the dream, not realizing you’re just trying to survive your first winter. Don’t get me wrong, there’s nothing wrong with helping our friends, family, extended family, and, well, the entire barangay. But if you’re just starting out in a new country, you’re probably not yet in a position to be everyone’s Santa Claus.
What to Do Instead?
Set boundaries—firmly but kindly. Explain that you can only help with the essentials for now because you need to focus on building your financial foundation so you can help more in the long run. It’s like they say during pre-flight instructions: “Put your oxygen mask on first before helping others.” You can’t support your loved ones if you’re struggling to keep yourself afloat. Be open about your expenses—show them your bills and explain how they eat up your take-home pay. If they still don’t understand despite your best efforts, that’s on them, not you. Remember, it’s okay to say no for now so you can say yes to generosity in the future. I recommend the book Boundaries by Dr. Henry Cloud and Dr. John Townsend. It teaches you how to say yes and no appropriately, helping you take control of your life while maintaining healthy boundaries with those around you.
Build a Better Financial Future in Canada!
Moving to Canada is an exciting adventure, but it’s easy to get caught up in financial traps if you’re not careful. Avoiding unnecessary credit, buying used over new, and setting firm boundaries on remittances can help you establish a solid financial foundation. These practical tips for saving money will keep you on the path to financial success, allowing you to enjoy all the opportunities that brought you here in the first place.
Remember, being financially responsible isn’t about being stingy—it’s about making wise choices for your future – so you can be more helpful financially. Stick to these tips, and you’ll thank yourself later!
In addition, find a church that shares your belief. Many churches offer groups where you can join, connect, and get support. Canada is a multi-diverse country, so you’re bound to find Filipino communities that can offer encouragement and a sense of home. At the same time, try to network with other races and ethnicities—you never know when you might make a connection or receive a job referral that could make a big difference! Building both your financial and social support systems will go a long way in helping you settle down and thrive in your new environment.
I hope this makes your transition to Canada a bit smoother, mga kababayan! Remember, it’s all about making smart money moves early on so you don’t get stuck in the same financial traps that many newcomers face. Good luck, and welcome to your new home!
