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To most of us, Boxing Day in Canada is the holiday that comes right after Christmas. Many Canadians don’t know the history of the holiday or what its true purpose was. Today, it’s a shopping holiday where you can get great deals on everyday items. It was not always this way, however. Let’s explore the history of Boxing Day and what it has transformed into today.
Boxing Day is an international holiday that many countries around the world celebrate. The holiday is celebrated on December 26, which is the day after Christmas Day. If the day falls on a weekend, the holiday shifts to the following Monday.
Boxing Day originated as a day to give gifts to the poor. After giving each other gifts the day before, the wealthy would box up gifts and give them to the poor. Most people serving the upper class had to work on Christmas and did not get the day off. As a result, the following day would almost serve as their Christmas. Boxing Day also became a time for the wealthy to donate to the poor.
While the idea of boxing day has been around since the 1600s, its official origin was never confirmed. Most people believe that the day was officially established in Britain during the reign of Queen Victoria.
Today, many countries linked to Britain, such as some of the Commonwealth Countries, celebrate Boxing Day. Since Canada used to be a British colony, it too celebrates the holiday.
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Boxing Day is a statutory holiday for all federally regulated employees. However, not all provinces made it a statutory holiday. The only province that observes Boxing Day in Canada as a statutory holiday is Ontario. This means that if you live outside Ontario and do not work in a federally regulated industry, Boxing Day will not be a statutory holiday for you. If you live in Ontario, however, it is a statutory holiday.
While Boxing Day was originally a day for giving gifts to the poor, it has undoubtedly transformed into a shopping holiday. In recent years, the term, “Boxing Week”, has started to become popular. This is because of the sales that take place during the week after Christmas. For some families, December 26th can also serve as a way to extend Christmas celebrations. As mentioned above, some Canadians have Boxing Day as a statutory holiday, so they can take the day off.
Boxing Day in Canada has become a great way to save on household items you are planning to buy. If you know you need a new TV, and Boxing Day is a month away, it is usually worth waiting. Boxing Day sales can save you hundreds of dollars if you plan and time your big purchases correctly. Things like electronics, furniture, clothes, and home renovation items usually face tremendous discounts during Boxing Week.
From large corporations to local businesses, almost every store in Canada offers Boxing Day sales. In this section, we will look at some of the most common stores across Canada and what items you will find on discount.
Walmart is one of the biggest corporations in the world. It also offers some of the biggest discounts during Boxing Day in Canada. Most items sold by Walmart receive sales during Boxing Week, with the exception of food items. The items that receive the biggest sales are electronics, appliances, and furniture. You might also be able to find discounts on various other items such as toys and clothing.
Both Best Buy and Staples are some of the best brick-and-mortar stores to buy electronics. They are famous for holding massive sales during certain times of the year, including Boxing Day. Best Buy and Staples also have Back-to-School Sales and Black Friday sales so it is a good idea to be on the lookout for both.
Canadian Tire is another big retail store that offers great deals on Boxing Day. You will find a wide variety of items on sale if you do your research. Some common products that are usually on sale include small kitchen appliances, kitchenware, garden tools, and much more. To get a better idea of what items in Canadian Tire are on sale, click here.
These are just some examples of stores that offer Boxing Day deals. Almost all big retailers, and even some small businesses, extend the sale for a week. Make sure to be on the lookout for such sales if you are planning to make a big purchase in the near future.
While the holiday began as a way to give gifts to the poor and allow people to enjoy a day off, it has taken on a completely different role today. Commonly referred to as a shopping holiday, Boxing Day in Canada has become a great way to save money. Today, the holiday mainly serves as a shopping holiday and an extra day to enjoy the Christmas holidays.
Salary negotiation is a touchy subject. Most job seekers are still unclear about the best practices for negotiating their salary. As a newcomer to Canada, the subject can be even more intimidating. You’re new to the country and you may be unfamiliar with common job search practices. Many people fear that asking for more money means they will miss out on the job offer. Others may immediately accept a job without knowing you have the option to negotiate salary and other benefits.
Negotiating your salary in Canada is common. It’s part of the hiring process. So, you shouldn’t shy away from the topic. As with other aspects of the job search process, there is a time and place for everything. There will be some jobs where there is no room for negotiation. There are also certain times when it is better to discuss money with your potential employer.
Here are specific actions, tips, and advice for when and how to negotiate your salary in Canada.
Yes, you can negotiate your salary when applying for jobs in Canada. A job offer is just that – an offer. You can negotiate all aspects of it, including your salary.
Remember that as a job candidate, you are interviewing the company as much as they are interviewing you. You need to be sure the company is somewhere you want to work. And you need to make sure you will be compensated fairly for the work you will do.
This applies to entry-level positions as well. Most people incorrectly assume entry-level salaries are non-negotiable. But this is not always true. Companies will make exceptions for candidates they feel are the right person for the job. However, you usually have less wiggle room for these entry-level positions because they are easier to fill.
There are a few common situations where you will find yourself in a position to negotiate your salary.
Salary negotiation is a normal part of the job search process. While it can be an intimidating process, it’s completely normal. Here are some reasons you should negotiate your salary before accepting a job offer:
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARIf you are going to negotiate your salary, you need to approach it the right way with the following actions:
You need to understand the salary trends for your industry and your specific position. Consider your skills, education, and level of experience. All these factors play a role in determining how high of a salary you can command. This will take some research.
The more information you have, the stronger case you will be able to make to justify your salary request. You can’t ask for more money “because you think you should make more.”
Learn how much other companies pay for a similar position. Research the employer’s compensation structure. Find out how much people are paid for similar job titles.
Use websites such as LinkedIn, Glassdoor, and job boards such as Indeed to get this information.
You can ask others about the employer’s hiring practices to determine if they are receptive to negotiating salary.
If you plan to ask for a higher salary, expect the employer to ask you to justify why you should get more money. You can expect employers to push back and need to understand your positions.
Have several well-thought-out reasons why you should have a higher salary. For example, fluency in another language is a great asset for a global company. Or, you may have specialized training the employer requires.
If the employer is willing to negotiate, have a clear salary in mind. You should also expect them to counter your offer.
They may offer you more but not as much as you are asking. So, choose a number you know is higher than you expect. For example, a job has a salary of $40,000 per year. You believe you should make a little more. You ask for $50,000. The employer counters with an offer of $45,000. You meet in the middle, and everyone is happy.
Remember you can also negotiate more than money. If an employer won’t budge on the salary you can ask for other benefits such as more vacation time.
This is important and often overlooked by employees. Get all agreed-upon salary terms and conditions in writing. This will ensure everything you have spoken about is documented.
Here are some important pointers to keep in mind. Avoid doing the following as part of the negotiation process:
The timing of your negotiations is important. Ideally, you should wait until you have received a formal offer in writing. Feel free to ask for time to consider the offer and formulate your salary request.
It can be very easy to get yourself into a mindset where you are only thinking about salary. Salary is important but it is not the only thing. Consider the possibility of a signing bonus, commission, and other forms of compensation as part of your job offer package. Other things to negotiate on top of or in addition to base salary include:
Don’t reveal your bottom-line number or you will lose your leverage in the negotiation. Know your worth and do not be afraid to ask for it. Employers will respect this. Your offer will not disappear because you want to negotiate. In most cases, the worst thing that will happen is they will say no to your request for a higher salary.
Salary negotiations can be intimidating, but they are necessary if you want to be paid what you are worth. It’s also a common practice in the hiring process in Canada. So if you don’t negotiate salary, you could leave money on the table.
While there are many things to do, here are the top 10 financial steps to take before you leave for Canada. And when you take these steps, it will prepare you for better financial footing when you arrive in Canada.
Having a Canadian bank account before departure has many benefits. You can use the statement as proof of funds for the immigration officer at the Canadian airport, you don’t have to carry cash and worry about safety, and you have funds ready to use and don’t have to wait a week before a draft clears. Scotiabank is one of the few banks that allow you to open a bank account online when in your home country.
Pay your debts. Review your insurance policies. Cancel your monthly services and obtain the necessary proof. Sell your property or arrange to manage it from afar. In the stress of moving to another country, it is incredible how easily we overlook details and leave behind loose ends. Never say “I’ll deal with it later,” because settling financial affairs from a distance often turns out costlier and more stressful.
Before you leave, research the basic costs in the city where you plan to settle. While you won’t be able to estimate your monthly expenses down to every detail, it’s helpful if you know the following costs:
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARBring important documents such as professional licenses, education transcripts, and educational credential evaluation results. If enrolling young children in school, bring their birth certificates, school records, and immunization records.
Other documents include travel and temporary health insurance, medical records, driving license, and marriage certificate.
Check out the Canada Border Services Agency (CBSA) website for restricted and prohibited goods. You want to avoid paying fines or extra taxes or having to dispose of certain goods.
Make a list of everything you need to buy to set up a home, down to forks and spoons. The things we take for granted at home cost money, every single one of them. The list may be long, but you should always have a realistic idea of your needs. This way, you will avoid getting carried away when you shop for your new life in Canada.
The Canadian government requires immigrants to show they have the minimum settlement funds to support themselves and their dependents for six months after arrival. However, it’s better to have more than the minimum.
When you arrive, you need to manage your savings carefully. If you can take on extra work and reduce unnecessary spending. These vital steps financial steps before you leave for Canada will minimize financial stress.
Take advantage of cheaper services while still in your home country. For example, in Canada, like in most advanced countries, dental services are notoriously expensive, as are many other medical or cosmetic procedures. Repairs and restorations of items such as artwork or other valuable possessions will, most likely, be more expensive in Canada.
If you don’t have any friends or family willing to offer temporary accommodation, research the cost of short-term rentals well in advance, and make reservations. Pick a cost-effective and convenient location that will allow you to move around easily while you search for a permanent home.
Know in advance how you will handle your money. Will you carry cash? Will you rely on credit? Many hotels in Canada do not accept cash and require a credit card, and rental buildings require payment by debit card or cheque.
It can be stressful carrying around too much cash, but you can easily lose track of spending solely relying on plastic. So make a point of checking your balance.
Moving to a new country will require a solid financial plan. And when you take these financial steps before you leave for Canada you’ll be better able to manage your finances.
For newcomers, it’s not uncommon to face an uncertain financial situation in your first few years. An emergency fund can help you meet unexpected costs, manage expenses while searching for employment, or stay afloat if you face a job loss. Unexpected expenses can arise at any time, anywhere to anyone. Those who are prepared will walk out without bearing too much harm to their financial health. A good way to make sure you can survive a financial crisis is to save money for an emergency fund. This article covers the different types of emergency funds and how you can save money for each fund.
An emergency fund is a pool of cash that is set aside to be used in the case of an emergency. It should be stored completely away from your checking/saving accounts to ensure that you are not tempted to use it for daily expenses.
The purpose of an emergency fund is to keep you financially secure. When an unexpected expense arrives or you lose your job, this fund will help you cover expenses. Your fund could be used for emergencies such as:
That is why it is important to have at least three to six months of living expenses in your emergency fund. This type of fund is called a traditional emergency fund. However, it is not the only type of emergency fund that will help you.
Emergency funds are a very important asset to have because they can help you get through a financial crisis without bringing much harm to your financial health. Even so, a traditional emergency fund can take years of saving money to build. Fortunately, there are many types of emergency funds, some of which are easier to save money for. Let’s take a look at three different types of funds:
1. A traditional emergency fund
2. Stash of Cash (having cash on hand)
3. Passive income.
A traditional emergency fund is the biggest fund on this list. Because of this, it can take years to save up money to build a traditional emergency fund. Generally, a traditional emergency fund should cover three to six months of your income. This means that if you lose your job, you will have enough money in your emergency fund to pay all the bills for several months.
A traditional emergency fund can also be used for things such as health emergencies, auto and home repairs, and any essential need that requires a large amount of money immediately.
A stash of cash isn’t a big emergency fund and it is easy to save up money for one. This type of emergency fund can come in handy during a natural disaster or a power outage. Basically, you need cash in any situation when you can’t withdraw money from an ATM. Your stash of cash could be anywhere between $500 to $1500. It should be enough to pay your expenses for a week when an ATM is inaccessible.
The biggest concern about keeping money at home is safety. Some argue that it is unsafe to have that much money in your home. This challenge can be overcome by hiding that money in a place that is easily accessible, but hard to find. Just make sure it is nothing too obvious like a money pouch or a wallet.
Most burglaries happen very quickly so hiding your stash of cash in a good place is enough to keep your money hidden. If you are still concerned about safety, you can buy a money safe or locker to hide your money.
This third type of emergency fund isn’t even a fund at all. However, during a financial crisis, passive income can prove to be very beneficial. This strategy is also used by countries to avoid a nationwide financial crisis. The main idea here is to diversify your income. Here is how it works:
Most of us have one job that we rely on to pay all of our expenses. But what if you lost that job? How will you pay the bills? To avoid this, you can diversify your income. Simply put, you should find other ways to make money so that you will still have a flow of income that you can rely on to pay the bills if you lose your main job.
You can make passive income in many ways. Some common ways to make passive income are:
These are just a few ways to make passive income. There are countless other ways you can make extra money. You can also be a little creative and think of your own way to make money on the side. Overall, your objective should be to diversify your income source so that you can rely on other sources of income during a financial crisis.
Even when there is no emergency, passive income will help you save for your emergency fund and overall, have a higher household income. This will not only help you be financially secure but it will also help you grow financially.
Financial stability is vital for anyone who has recently arrived in Canada. Even if you have a strong financial standing in your home country, you must establish it in Canada. Applying for a credit card is one of the first and most effective steps to build your credit and give yourself a buffer.
Credit cards are a convenient payment option and they help establish your credit history. Paying off your credit card balance each month will help you build your credit score and qualify for larger loans and financial products in the future. This is important especially if you want to get a car loan or qualify for a mortgage.
Applying for a credit card can seem overwhelming, especially if you are a newcomer. You may not know how to apply, what information you need, or if you qualify. Here we will provide you with the information you need to apply for your first credit card in Canada.
You will need the following information to apply for a credit card:
Applying for multiple credit cards can affect your credit score. So, avoid applying for several cards to see which one accepts your application. You must assess your financial situation to know what type of card will best meet your needs.
Ask yourself:
Many types of credit cards offer unique benefits. Depending on your situation and financial needs, these card features may make sense for you:
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINAROnce you have completed your research, you can complete your credit card application. The most effective way to do this is online through the lender’s website. You can also apply over the phone and through the mail.
If you apply online or over the phone, your application can be processed and approved in just a few minutes. Sometimes you will need to provide additional information to get approved. Once approved, you can expect your credit card in the mail in about five business days.
You have more options to consider than you think. Applying for the right credit card that matches your needs can help build a solid financial foundation.
Pay deductions can often be confusing and can come as an unpleasant surprise if you weren’t expecting them. Canadian workers have quite a few pay deductions that you should be aware of. Some of these are mandatory, like taxes, while others are voluntary, like union dues. These deductions make the difference between net pay and gross pay. Many pay deductions are there to help you in the future. However, you won’t be able to take advantage of the extra money if you do not know where it is and how you can access it.
After you accept a job in Canada, you will receive a job offer letter. This is an exciting time! Your offer letter, also known as an employment letter, will include:
The amount of money that is shown in the letter will not be the same amount that you will receive. This is because the amount on the letter is your gross pay.
Understanding the difference between net and gross pay is important to put your money to the best use. Fortunately, net pay and gross pay are quite easy to understand.
Gross pay: the money your employer pays you before mandatory and voluntary deductions.
Net pay: the amount of money you receive after deductions.
Each time your employer pays you, they must deduct a certain amount from your paycheque. The deductions depend on:
However, when an employer tells you how much you are going to be paid they are talking about gross pay. Gross pay is your pay before deductions. It is not actually what you are going to receive. Your gross pay includes bonuses, commissions, and overtime pay.
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
Arrive in Canada Financially PreparedFrom your gross pay, your employer will deduct the following:
These deductions are not lost, however. Taxes pay for many public and social services in Canada. CPP and EI will also benefit you in the future when you retire or if you lose your job.
After all the deductions, the remaining money is your net pay. This is the amount you will take home. Avoid confusing your gross and net pay because you need to budget your net pay, not your gross pay.
Your pay stub, or the letter you will receive with every pay, will have your gross and net pay. Your gross pay is listed at the top of the pay stub, followed by any deductions. At the bottom, you will find your net pay. This is the amount of money you will receive for that payment term.
Now let’s look at different pay deductions and how they affect your pay.
Your employer must deduct any voluntary pay deductions before they deduct any income tax. These deductions will affect your net pay. Some examples of voluntary deductions include:
Not every paycheque will have these deductions because you will choose whether or not you want them. Whenever you buy anything from your workplace, you will either have to pay on the spot or the amount will be deducted from your pay. If you are part of a trade union, your union dues will also be deducted from your paycheque.
Any automated deposits you arrange will also be deducted from your paycheque. These deposits may be linked to your savings account or automatic contributions to a Registered Retirement Savings Plan (RRSP).
Depending on your job, you could also have other deductions as well. Review your pay stub each month to ensure the deductions are correct. If you see a deduction you don’t recognize, talk to your employer about it. Keep in mind this money is not taxable income. You pay taxes based on the income after deductions.
Once all the voluntary pay deductions have been made the remaining money is taxable income. The government will take some of your taxable income as income tax. Income tax goes to both the provincial government and the federal government. The government uses this money to invest in education, healthcare, and infrastructure.
Another deduction that is made from your taxable income is EI. As the name suggests, employment insurance provides financial support in case you lose your job. EI provides a temporary income to workers while they are forced to leave their jobs due to illness, need to care for family, or upgrading skills. Click here to learn more about Employment Insurance.
Another mandatory pay deduction is CPP. This deduction ensures that you have some financial support after you retire. CPP functions to replace some of your current income when you retire. Of course, the more CPP you contribute, the higher your pension will be when you retire.
Another way to increase your pension after retirement is to work longer. The earlier you retire, the less pension you will receive each month. So to receive more, you can retire later. The standard age of retirement is 65. However, you can retire as soon as 60 and as late as 70.
To learn more about CPP, click here.
As you can see, many payroll deductions help you save for the future. However, you can take things further by adding more deductions to your pay, each payment term. I know it’s tempting to want all your money from each paycheque but it’s wise to save for the future.
A good way to save for the future is to set up automated deposits into your savings account or a Registered Retirement Savings Plan (RRSP). These automatic deposits contribute a portion of your paycheck into whatever account you want them to.
You can refer to the 50/30/20 budgeting rule if you’re unsure how to budget your money. The rule recommends you put at least 20% of your pay toward savings. This way, you will have most of your pay for fixed expenses and entertainment while building savings over time.
If you plan to pay for your child’s post-secondary education, you can also open a Registered Education Savings Plan (RESP). An RESP is a great way to save for post-secondary education because the government will also contribute money to your RESP for every dollar you contribute. You can set up another automated deposit for this.
The best financial advice is to stick to a budget and automated pay deductions are no exception. Divide your money properly and have enough to pay for basic expenses before you set up any automated deposits. However, it may be wiser to make manual deposits if your income is not reliable or low.
Newcomers should know about the different types of bank accounts to use all the financial resources available to them. Knowing what each bank account is for will help you to put your money in the right place. Opening a bank account is one of the first things you do upon arrival in Canada. A bank account is a place where you can keep your money safe. And buying a house or using a debit card to pay at a grocery store would not be possible without a bank account. As well, a bank account makes you eligible for a loan such as a mortgage and is a convenient way to store your money.
A bank account is an account in which you can deposit and withdraw money. These transactions can be both negative and positive. A positive transaction is when you deposit money in your bank, making your account balance go up. A negative transaction is when you take out money from your bank account, making your account balance go down. These transactions decide what your account balance is, or how much money you have in your bank account.
With your bank account, you can store large amounts of money that you can withdraw at any time. However, not all bank accounts will allow you to withdraw money at any time. There are two main types of bank accounts; a chequing account and a savings account.
Opening a chequing account will probably be the first thing you do in Canada because it is the account you will use for your day-to-day expenses. It allows you to withdraw money at any time, making it a convenient way to pay for expenses such as your grocery bill and withdraw money from an ATM. Opening a chequing account will also get you a debit card. A debit card is a card that can make payments without cash. Almost every store in Canada has a debit card terminal so you will almost always have the option of paying digitally from your chequing account.
One thing to keep in mind is that most chequing accounts have a small monthly service fee as long as the account is running. Most chequing account service fees are usually around the $10 range. However, some chequing accounts have no service fees, called no-fee chequing accounts.
Some chequing accounts also offer ways to avoid paying monthly service fees. Some ways to avoid service fees are to either maintain a set minimum balance or deposit a certain amount of money into the account each month. The minimum deposit is usually around $5000. This means that if you have more than $5000 in your chequing account, you will be charged no fee that month. A minimum deposit usually ranges from $300 to $500. This means you need to deposit at least the minimum deposit amount in order to avoid paying your chequing account fees.
Opening a savings account allows you to save and grow your money. Unlike your chequing account, a savings account earns you interest on the money you save. However, a savings account cannot be used for day-to-day expenses. There is a fixed number of transactions you can do from your savings account each month, and that number is usually three. If you do any more transactions than that, you will have to pay transaction fees which make a savings account inconvenient for daily expenses.
Opening both a savings and a chequing account is a great way to manage your money. Together, they have all the features to meet your financial needs. You can keep the money you need for your daily expenses in your chequing account while keeping any additional money in your savings account. That way, you can pay for your expenses while earning interest on the rest of your money.
Now let’s look into some more specialized types of bank accounts that will help you save for the future.
Ready to take control of your financial journey in Canada? Join our expert-led online webinar! Learn essential banking tips to build a strong financial foundation. Hear from David Frattini, Managing Partner at Prepare for Canada, and Neil Dhanani, Financial Advisor at Scotiabank, as they guide you through everything you need to know.
REGISTER FOR THE WEBINARCanadian banks have many resources to help you achieve your financial goals. Some of those resources include specialized bank accounts. The types of bank accounts covered in this section will help you achieve your financial goals faster. These accounts are all registered, meaning they are registered with the Canada Revenue Agency (CRA) to provide tax shelters. All the specialized accounts listed below are great saving resources because they can help you save on taxes.
The accounts covered in this section are Registered:
Opening an RRSP is a great way to save for your retirement. An RRSP works by delaying when you pay taxes on your income. This can be both to your advantage and disadvantage. The reason this is considered a retirement savings plan is because you will be in a lower income tax bracket at the age of retirement.
When you deposit money into your RRSP, it will come off your income directly and won’t be considered taxable income. For example, if your income is $50,000 and you decide to put $5000 toward your RRSP, the government will only make you pay income tax on $45,000 of your income.
This doesn’t mean you don’t have to pay taxes on that money in the future. When you withdraw money from your RRSP, that money will be considered as your income, and you will be taxed on it.
So then what is the point of RRSPs? If it saves you from taxes now, only to make you pay taxes in the future, why open an RRSP account? The answer is simple. You will have to pay more taxes when you are earning compared to when you are retired. When you take out money from your RRSP at retirement, you won’t have to pay as much income tax compared to when you were working.
As the name suggests, opening an RESP will help you save for your child’s education. Here is how an RESP works.
Every time you deposit money into your RESP, the government of Canada will contribute some money to your RESP as well. This money is called Canada Education Savings Grant, or CESG. A basic CESG is 20% on top of your deposit. However, low-income families might qualify for a 40% CESG.
To put this into perspective let’s look at an example.
Let’s say you deposit $2000 to your RESP this year. With a basic CESG, the government of Canada will contribute an additional 20% of that $2000 to your RESP.
$2000 x 20% = $400.
After your $2000 deposit, your RESP account balance will be $2000 (your contribution) + $400 (government’s contribution), which is $2400.
An RDSP is a savings plan intended to help people with disabilities save for a financially secure future. It works very similarly to an RESP. The government contributes money for every dollar you put in your RDSP. Unlike an RESP, however, RDSPs offer incredible returns, even as much as triple your contribution. The money contributed by the government is called the Canada Disability Savings Grant, or a CDSG. CDSGs will vary from person to person so they can even be as high as 300%!
RDSPs are an amazing way to save for the future and ensure a financially secure future for anyone with a disability. They offer some of the best returns on investments in Canada so if you are eligible for an RDSP, look into getting one.
To learn more about registered accounts in Canada, here is an article on RRSPs, RESPs, and TFSAs that explains each of those in detail, as well as some frequently asked questions.