You are on: Get Organized tabs
Here are a few tips that will help you stay organized and plan your new life in Canada.
Saving money when you shop
Day-to-day living expenses in Canada may be very different from what you were used to in your home country. Costs for food, clothing and home furnishings may surprise you. Even more surprising may be the variation in costs between different regions of the country and between different retail stores.
Stores compete with one another for your business, so it's always worthwhile to compare prices before you buy. Note: the price of a product does not include provincial sales taxes (PST), goods and services tax (GST) or harmonized sales tax (HST) (applicable to select provinces only), which will add anywhere from 5 percent to 15 percent to the cost of an item, depending on the province in which you buy it.
Here are some more tips to help you save money when you shop:
- Check your local paper for flyers and coupons.
- Need to make a large purchase? Check craigslist.com
or kijiji to see if you can find a gently used or second-hand item.
- Many of your favourite brands provide special offers and rewards via email so be sure to sign up for their newsletters.
- Check out Flyerland for online access to flyers and coupons from stores in your area.
These tips may help you save a few dollars as you shop and take care of your day-to-day needs. However, a more formalized budget can help you manage your money carefully so that you have enough to meet everyday needs and can save for future goals.
Getting your driver's license
You may have been able to use your foreign driver's license for the first few months after you arrived in Canada but at some point, you will need to get a Canadian driver's license to continue driving. To get a Canadian driver's license, you need to take a road test and a knowledge test on the rules of the road. Some provinces use a graduated licensing process, which gradually gives you more freedom to drive as you gain experience. Find out more about getting a driver's license in the province or territory where you live.
Tip: A driver's license is good to have as a form of alternative identification that you can use, instead of your passport. It is a good idea to get a Canadian drivers license even if you don't plan to buy a car and drive regularly.
Find childcare in your area
Most childcare centres have both regular, full-fee and subsidized spaces for families that qualify. This national source of daycare listings and child care information is helpful for finding quality daycare centres and reviews across Canada. Alternatively, you can review the specific listings below.
Toronto: Childcare in the City of Toronto is available in over 900 licensed childcare centres and through 21 licensed home child care agencies working with over 2,000 approved home care providers. Use the childcare finder to find services near you.
Ottawa: Review the different child care options , available in both English and French, in Ottawa. Or use their search engine to find all the child care centres, nursery schools, licensed home child care agencies and Early Years Centres in a specific area.
B.C.: The Ministry of Children and Family Development works with community groups to promote quality child care choices that meet the needs of local families. You can search by postal code or city to find child care options convenient to you.
Enrol your children in school
Regardless of which province you live in, your children will have the same access to education. Children must be enrolled in a school in order to attend classes. To enroll your children, you will need their birth certificates and other identification (such as their Record of Landing, Permanent Residence Card, or passport). You may also be asked to bring immunization records and past school and health records. To find out which school is closest to you and the one which serves your community, visit the local district school board website.
Children between the ages of 6 and 16 must attend school. The majority of Canadian children go to public schools. You can enroll your children at the local public school free of cost. School classes usually start in early September and end in late June. There is a two-week vacation in December and a one-week vacation in either February or March. Children attend school Monday to Friday, for about six hours a day. In some provinces and schools, kindergarten school is only for half a day or 3 hours. There are morning or afternoon slots depending on the school in your area.
There are also private schools, but you will need to pay fees if you want your child to attend a private school. These fees can be quite expensive. Public schools and separate (Catholic) schools in some provinces are paid for through your provincial taxes.
You are on: Personal Finances tabs
Now that you're becoming more comfortable with your new life in Canada, you'll probably want to start looking ahead and plan for your future. Here are a few ideas that you may wish to consider:
Managing your debt
Having a credit card or a line or credit can be a great way to manage your expenses. These products will help you build your credit rating in Canada. A strong credit rating will help you when you wish to get a loan for a car or when you apply for a mortgage, ensuring you get competitive rates.
But if you take on too much debt and are unable to meet your payment obligations, it could have a negative impact on your credit rating. To avoid this, make sure you understand the terms of the credit when you borrow. Different products come with different rates, credit limits and repayment obligations, and should be used for different purposes. For example:
- Credit cards are a convenient alternative to cash or debit. They are a good choice for day-to-day purchases when you know you can pay the balance when the statement comes in. You can also earn rewards for paying with your credit card (either RBC Rewards or Cash Back) that add up over time.
- Term loans offer a lower interest rate than credit cards, and make sense for occasional big-ticket purchases, such as a car, furniture or a vacation. They also provide a repayment structure.
- Lines of credit are a flexible way of borrowing when you need to make a number of purchases. They offer access to credit that's there as a backup when you need it, but you don't pay for it when you're not using the funds.
- Mortgages are uniquely designed for the biggest purchase most people make: their home. Mortgages come with a range of options tailored to your situation.
Use the credit that's right for your needs to help you achieve your common goals, borrowing only as much as you feel you can comfortably pay off.
Invest in your children's education
Canada offers tremendous educational opportunities for your children, but post-secondary education, such as college, university or a vocational, technical or trade school, costs thousands of dollars each year for tuition, books, computers and living expenses. One of the most effective ways to save for this expense is with a Registered Education Savings Plan (RESP). An RESP is a registered investment account that allows you to set aside money specifically for your children's education. There is no annual limit to contributing to an RESP however, there is a lifetime contribution limit of $50,000 per child.
RESPs have three advantages over non-registered savings plans.
- Government grants – The Canada Education Savings Grant (CESG) program matches 20% of the first $2,500 contributed annually (e.g. a $500 grant) per year per child, from birth until age 17. The maximum lifetime CESG is $7,200 per child. Learn more about RESP's and other federal grants that you may qualify for such as the Canada Learning Bond . Check with your province to find out if you are eligible for any additional education grants.‡
- Tax-deferred growth. Contributions to RESPs are not tax-deductible; however, all investment earnings accumulated are not taxed until the funds are used for higher education.‡
- Little or no tax when withdrawn – Investment earnings in RESPs are not taxed as long as they stay in the plan. Once the money is used for post-secondary education the money is taxed as your child's income. Usually there is little or no tax for your children to pay.
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‡ Investment products such as mutual funds are offered through Royal Mutual Funds Inc. (RMFI) and guaranteed investment certificates are offered through Royal Bank of Canada. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not guaranteed or covered by the Canada Deposit Insurance Corporation or by another government deposit insurer. For funds other than money market funds, unit values change frequently. For money market funds, there can be no assurances that a fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in a fund will be returned to you. Past performance may not be repeated.
Financial planning services and investment advice are provided by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada, The Royal Trust Company and Phillips, Hager & North Investment Management Ltd. are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.
Buy your first home
In addition to providing you and your family with a place to live, a home is a valuable investment for your financial future. Purchasing a home is likely one of the biggest investments you'll make in your lifetime and it comes with financial and emotional implications. Finding the right location is key, especially when you have children. Consider these points before starting your search:
- You'll want a safe neighbourhood, close to schools and transportation
- Factor in all of the costs associated with buying a home, above and beyond your down payment and mortgage payments. Like land transfer taxes, closing fees, or even the cost of appliances and window treatments.
- Consider moving costs, taxes, insurance, utilities and maintenance.
It is important to note that most first-time homebuyers in Canada need a mortgage – a long-term loan from the bank that uses the home as security. Mortgage rates are among the lowest of all credit products but, because of the large amounts involved, a mortgage loan is also typically the longest to pay back. As you grow your savings in Canada and enjoy more financial security, you may be able to take steps to pay down your mortgage faster.
Find out what kind of monthly payment you can afford right now with these tools:
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Manage your savings
Putting a savings plan in place today can help ensure that you have the money you need to achieve both your long-term and short-term goals. Once you've identified your saving and investing goals, an RBC advisor can help you decide the best way to invest to reach them. Some things to consider are:
Investment fit: Which investments will help you meet your personal goals with a level of risk that you're comfortable with?
Investment type: Are you interested in individual investments, such as Guaranteed Investment Certificates (GICs), or mutual funds, which are a selection of investments managed by professionals?
Investment returns: Some investments, such as GICs, have guaranteed rates of return. Other investments, such as equities, are not guaranteed but offer higher potential growth over the long term. What kind of investment mix do you want in your portfolio? There are many different investments to choose from. An RBC advisor will explain the features of each one to you and will help you select the mix that's appropriate for you.
Buy a car
Many people think of their car as a long-term purchase and buy one that not only meets current needs but one that can accommodate future needs as well. In fact, today it is not unusual for a car to last for 10 years or more. One of the biggest considerations you will have when purchasing a car is how to finance it. There are a number of options to consider which include the following: Installment loans, cash rebates, and discounted interest rates.
A typical car loan involves borrowing the full amount of the purchase price and paying it back over a set term, typically one to five years.
Before you make any vehicle purchase, explore your options and shop around for the best price.
Also, remember to factor in the cost of car insurance, which is mandatory in Canada. Car insurance can cost $1,000 or more each year, depending on the car, your age, your driving habits and where you live.
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Protect your family, belongings and lifestyle
Insurance is an important part of any financial planning that protects you and your family from the effects of unexpected events. Whether it's home, auto, life, health, emergency medical coverage when traveling or protecting your personal belongings, insurance could be one of the wisest investments you can make. Without it, just one unexpected incident could jeopardize your financial security.
To help you understand how you can safeguard your financial plan, ask for your free General Insurance Needs Assessment at any RBC Royal Bank® branch. For general advice around protecting what is important to you, visit our Advice Centre 
The following tutorials are a great starting point to learn how you can protect your family, belongings and lifestyle.
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Plan your retirement
It's never too soon to think about how to make the most of your retirement years. With a plan in place, you can get a better idea of where your money will come from so you can achieve the lifestyle you want when you're ready to retire. Even a small saving commitment today can make a significant difference in the long term. One of the most valuable tools available to help you save is a Registered Retirement Savings Plan (RRSP).
An RRSP is different from a non-registered account in that your contributions are tax-deductible and the earnings generated by the investments in your RRSP are tax–deferred, in other words, they are not taxed so long as you keep them in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan.
Because RRSPs offer generous tax breaks, there's a limit on how much you can contribute each year. Your maximum contribution is generally 18% of the amount that you earned during the previous year, up to a specified dollar maximum set by the government, less any pension adjustment related to an employer pension. As a new Canadian, you should not make a contribution until the year after you begin working in Canada.
To learn more about how RBC Royal Bank can help you save for retirement, just visit any branch to talk to an RBC advisor. We can work with you to help identify your retirement savings needs and develop an action plan to help you reach your goals.
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You are on: Canadian Income Taxes tabs
Canadian taxes, while necessary, can seem complicated and overwhelming. The Canada Revenue Agency (CRA) offers a free online course for individuals who aren't familiar with the income tax system. It will give you a basic understanding of Canada's income tax system, and will explain how to complete a simple tax return and answer many of your tax related questions.
Minimize taxes with a Tax-Free Savings Account
Canadian residents who are 18 years of age or older with a valid Social insurance number (SIN) are eligible to contribute up to $5,000 annually to a Tax Free Savings Account (TFSA). The initial amount contributed as well as the income earned in the account is tax-free, even when it is withdrawn. Learn more
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Filing your income tax
Canada Revenue Agency's website has all the information you need about completing your income tax and benefit return including:
If you are unable to complete your income tax and benefit return by yourself and are unable to pay for assistance, our Community Volunteer Income Tax Program (CVITP) may be for you. Volunteer preparation clinics are generally offered between February and April of each year in various locations across Canada, however, some tax clinics operate year round. For more information, call 1-800-959-8281.
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