Tips for saving and spending

Saving your money

You can save money on items such as housing, food and clothing by choosing housing you can afford, shopping for food carefully and buying clothes at second-hand stores. You can also save on transportation by walking, riding a bicycle or taking a bus rather than a car or taxi. When you first move to Canada, you may find that necessary items take up as much as two-thirds of your budget.

Major purchases

To avoid going into debt, save for a major purchase before buying. If you have to borrow money for a house, a car or to start a small business, you will probably have to make a down payment—perhaps as much as 20 percent—from your savings.

Emergencies

It is a good idea to put aside some money for an emergency, such as an accident, illness or in case you lose your job or source of income. Most financial advisors suggest you try to keep at least three months' salary in savings to cover your costs in the event of an emergency.

Long-term goals

You may want to start saving for college or university for your children or grandchildren. You may also want to save for your own retirement or major purchases such as buying a home. It is important to include your long-term goals in your budget so that you can save money over time.

Sending money outside of Canada

Many newcomers choose to send money to their families in their home country. You may use financial institutions, the post office or private money-transfer services to send money to another country.

If you send money outside Canada, do not send cash. Use a certified cheque or money order, but first make sure that the cheque can be cashed in the other country.

Ask your financial institution about how to send money outside of Canada.

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