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Written By
Corinna Frattini
Oct 31, 2025
•Financial First Steps
November 2025 marks the 15th anniversary of Financial Literacy Month (FLM) in Canada. Led by the Financial Consumer Agency of Canada (FCAC), FLM supports the National Financial Literacy Strategy 2021–2026, helping Canadians and newcomers strengthen their financial knowledge and skills for better financial well-being.
This year’s theme is “Talk Money,” encouraging people to speak openly about money and break the stigma surrounding financial discussions. Whether you’re an international student managing a tight budget or a newcomer managing household expenses, talking about money increases confidence and improves financial decision-making.
Newcomers face unique financial challenges: navigating a new banking system, building credit from scratch, and managing living costs in a new economy. Financial literacy can help newcomers make informed choices about credit, savings, and investments, and avoid costly mistakes.
Financial literacy is vital and can help you:
According to the FCAC, only 49% of Canadians describe themselves as financially confident, highlighting the need for accessible, practical financial education.
Financial literacy is the ability to manage money effectively. Key skills include:
According to a 2023 OECD study, over 40% of Canadians lack basic financial literacy skills, highlighting the ongoing need for education and conversation.
Budgeting gives you control over your finances. A practical way to budget is by following the 50-30-20 Budget Rule:
Adjust your budget based on your income. If you earn less, reduce discretionary spending. If you earn more, increase savings or investments.
Read next: How to Save Money on Rent in Canada.
Canadians with a monthly budget save 2–3x more than those without a plan.
Financial Consumer Agency of Canada, 2022
Not all debt is harmful. Here’s how to borrow strategically to strengthen your financial future.
Good debt helps you build assets or increase your earning potential. Examples:
Bad debt reduces your net worth, for example, high-interest credit card debt or loans for depreciating assets such as new cars or luxury items.
Pro Tip: Using a credit card responsibly (paying the balance in full each month) can actually build your credit score and lower borrowing costs over time.
An emergency fund protects you from unexpected financial shocks. Here’s how to build one.
Your saving habits can protect you from the unexpected, and it’s important since nearly 40% of Canadians say they couldn’t cover a $500 expense without borrowing.
Read more: Saving Money for Your Emergency Fund
If you’d like expert help creating your newcomer budget, join our free financial webinar.
Join us for an eye-opening session on how to build your financial future in Canada with confidence. This free webinar is hosted in partnership with Scotiabank, a trusted leader in newcomer banking. Together, we’ll guide you through how the Canadian banking system works and share free tools and strategies to help you plan, save, and invest wisely as a newcomer.
REGISTER FOR THE WEBINARFinancial scams are more sophisticated than ever. Here’s how to stay safe and protect your money in Canada.
Remember:
Financial scams aren’t just about fake CRA calls; they can also appear in housing listings. Read How Can Newcomers Avoid Rental Scams? 10 Smart Tips to learn how to verify listings and protect your money.
In 2024, Canadians lost over $150 million to scams (Canadian Anti-Fraud Centre).
Investing helps grow wealth and achieve long-term goals. The sooner you start investing, the sooner you will begin to see gains.
Here’s a quick comparison of Canada’s main registered savings accounts and how each account can support your financial goals:
| SAVINGS PLAN | BENEFITS |
|---|---|
| Registered Retirement Savings Plan (RRSP) | Designed for retirement savings with tax-deductible contributions. Money grows tax-free until withdrawn in retirement (when your tax rate is often lower). You can also borrow from your RRSP to buy a first home or pay for education. |
| Tax-Free Savings Account (TFSA) | Lets you grow savings tax-free. Investment income, interest, and dividends aren’t taxed, even when withdrawn. Great for short-, medium-, or long-term goals as you can withdraw funds at any time. |
| Registered Education Savings Plan (RESPs) | Helps families save for a child’s post-secondary education with government matching grants — up to $500 per year (20% of the first $2,500 contributed). Funds grow tax-deferred. Lifetime contribution limit: $50,000 per child. |
| Tax-Free First Home Savings Account (FHSA) | Helps first-time home buyers save for a down payment. Combines the benefits of a TFSA and RRSP: tax-deductible contributions and tax-free withdrawals. |
Once you understand the savings options, you can speak to a financial advisor to create a plan that fits your goals.
Managing your budget, learning how credit works, and setting financial goals can feel overwhelming when you’re new to Canada. But you don’t have to do it alone. For newcomers, a financial advisor can also explain how the Canadian banking system works, help you build your credit, and identify programs or accounts designed for newcomers.
A financial advisor in Canada helps you create and manage a plan to reach your short- and long-term financial goals. They can guide you through key areas such as budgeting, investing, saving for retirement, and building credit.
Here’s what they typically do:
For newcomers, a financial advisor can also explain how the Canadian banking system works, help you build your credit, and identify programs or accounts designed for newcomers.
Start with the 50-30-20 rule, track expenses for a month, and adjust based on your income and goals.
A student loan is good debt if your degree leads to strong earnings; it becomes bad debt if you cannot repay it from your income.
Financial scams often use urgency, threats, or fake offers to pressure you. The Canada Revenue Agency or your bank will never request payments by e-transfer, cryptocurrency, or gift cards. Always verify suspicious messages directly with the official organization.
Looking to build your financial skills in Canada? These trusted national resources can help newcomers learn to budget, save, and invest with confidence.
Whether you’re learning how to open your first bank account or planning long-term financial goals, Canada offers several free and reliable tools to help you get started:
The FCAC leads Financial Literacy Month and offers tools to help you budget, save, manage debt, and understand banking in Canada.
Many local settlement agencies offer free workshops that cover budgeting, credit scores, taxes, and avoiding scams.
Find free newcomer services in Canada.
Read next: Essential Services to Help Newcomers Settle in Canada
Canadian banks offer specialized newcomer programs that make it easier to settle and manage your money. These often include no-fee bank accounts, credit cards without a Canadian credit history, and financial advice tailored to newcomers. Many banks also provide resources on budgeting, saving, and building credit to help you start your financial journey with confidence.
Financial Literacy Month 2025 is a great time to gain control of your finances. Budget, manage debt, save, invest, and talk openly about money to build confidence, make informed decisions, and strengthen long-term financial well-being in Canada.
For more money-saving guidance, explore our Managing Money section.
WRITTEN BY
Corinna Frattini
Senior Editor and Content Director, Prepare for Canada
Corinna researches and writes content to help newcomers make informed decisions about housing, employment, banking, and aspects of settling in Canada. With a background in human resources and leadership development, her articles focus on how newcomers can continue their careers in Canada. Her writing combines research, practical guidance, and clear language to support newcomers on their journey.
© Prepare for Canada 2025
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