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Written By
Corinna Frattini
Feb 3, 2026
•Saving & Investing
If you’re wondering how to save money in Canada as a newcomer, you’re not alone. Housing, transportation, and daily living costs can add up quickly. In fact, housing and transportation often make up more than 50% of a newcomer’s monthly spending. This guide shares practical money-saving tips, cost-saving strategies, and budgeting advice to help you build financial stability during your first year in Canada.
Your first financial decisions in Canada can affect your budget for years. Many newcomers face:
Using smart cost-saving strategies helps you:
Tip: For a deeper guide on budgeting from day one, see How to Manage Your Personal Finances When You’re New to Canada.
Furnished or basement apartments reduce upfront costs, as you won’t need to buy furniture immediately. Some newcomers save up to 30% on initial setup costs this way. Discover more tips in How to Save Money on Rent in Canada: 10 Tips for Newcomers.
Living near grocery stores, schools, and services cuts transportation costs. Walking or short transit trips can save $100-$200 per month on gas and transit fares. Small savings add up over the year.
Living closer to work lowers fuel, transit, and vehicle wear costs; a simple step that can save $50-$150 monthly, depending on your city.
Many communities offer newcomers furniture support. Programs like Furniture Bank or local charities often charge a small delivery fee, saving hundreds compared to buying new.
Online marketplaces like Kijiji and Facebook Marketplace offer gently used furniture for 50-70% off retail prices. Negotiation is common, so you can get even better deals.
Flat-pack furniture stores like IKEA can provide affordable options for newcomers who prefer new items at lower costs, especially for essentials like beds or desks.
Want a step-by-step financial plan before you arrive?
Understanding daily savings tips is important, but knowing how to budget, prepare for Canadian costs, and avoid early financial mistakes makes an even bigger difference.
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 WEBINARPurchase winter clothing in spring or summer, or summer clothing in fall, to save up to 80% on clearance sales.
Stores like Winners, Marshalls, or Dollarama offer brand-name clothing and essentials at lower prices.
Thrift stores sell quality items at a fraction of the original price, an easy way to save on wardrobe basics.
For short trips, walking or cycling eliminates transportation expenses and supports good health.
Public transit passes typically cost around $150/month, significantly cheaper than car ownership, which includes maintenance, fuel, and insurance.
If you need a car, a used vehicle can reduce upfront costs, but factor in insurance and fuel efficiency. Look for cars with 8L/100 km or better fuel economy for savings.
Websites like Save.ca list discounts across stores. Using flyers to plan meals can save up to 25% on groceries monthly, a key strategy to save money in Canada.
Stores like NOFRILLS, Dollarama, or Walmart offer affordable food and household essentials.
Home-cooked meals cost less than dining out and reduce food waste. A simple home-cooked dinner can cost $5-$7, compared to $15-$20 at a restaurant.
Apps and browser extensions like Honey can automatically find discount codes for online purchases.
Food banks offer short-term support during financial hardship and are available across Canada.
Track income and expenses to avoid overspending. Use apps or a budget planner spreadsheet to monitor fixed and variable expenses. Budgeting is one of the most effective ways to save money in Canada. Our Cost of Living in Canada: A Guide for Newcomers gives detailed insights into rent, groceries, transportation, and more.
Black Friday and Boxing Day sales offer deep discounts on electronics, furniture, and household items.
Many communities list free items on Kijiji or local bulletin boards.
Garage sales offer bargains on furniture, household items, and clothing. And, there’s room to negotiate even lower costs.
Start by reducing housing and transportation costs, buying second-hand items, cooking at home, and creating a monthly budget.
Housing, transportation, groceries, and household setup costs usually take the largest share of a newcomer’s budget.
Yes, public transit is often much cheaper than owning and maintaining a car.
Budgeting helps control spending, plan for emergencies, and ensure consistent cost savings.
Learning how to save money in Canada is about making informed, everyday decisions. Newcomers who control housing, food, and transportation early often free up hundreds of dollars monthly for savings, emergencies, and long-term goals.
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 2026
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