In an exclusive interview with Weekly Voice and Voice Media Group, Nazreen Siska, a certified credit counsellor with Credit Canada, shared valuable insights into the organization’s initiatives to empower newcomers in navigating Canada’s financial landscape. Drawing from her personal journey as an immigrant who arrived in 2014, Nazreen passionately advocates for financial literacy as a key to easing the transition for new residents. Through tools like the Butterfly budgeting app and free credit counselling services, Credit Canada is equipping individuals with the knowledge and resources needed to build a strong financial foundation in their new home.
Introduction & Background:
Can you share a bit about your background and your role in promoting financial literacy, particularly among newcomers to Canada?
I’m Nazreen and I’ve been a a certified credit counsellor with Credit Canada for the last 2 years. I moved to Canada back in 2014.
What inspired you to focus on financial education for immigrants and new residents?
I was once a new immigrant myself and I’ve had my fair share of challenges navigating the credit system and budgeting in Canada. I’ve had to start building my credit history from scratch and learn about various credit products along the way. It can be tough to adjust to the Canadian financial system, and I want other fellow newcomers to have a more seamless experience. That’s why I feel very passionate about financial education for immigrants.
Budgeting Challenges:
What are some of the common financial challenges that newcomers to Canada face when trying to create a budget?
When you’re a newcomer, it’s often difficult to gauge the cost of living, especially in Canada where it varies among different provinces and cities. At first, it can be quite a cultural shock and one can feel overwhelmed. It’s tough to know how much money to put aside for different expenses when you’re not sure how much everything will cost. Plus, you might be worried about being taken advantage of.
On top of that, you’re operating in a new currency that you’re not used to. This can also lead to confusion and frustration.
Are there specific cultural or systemic barriers that make budgeting more difficult for new immigrants?
From a personal perspective, I come from a background where the topic of money is not something that is discussed openly with friends and family. I know first hand that this can feel isolating when you’re in the process of learning about money management/credit systems in Canada, since you’re not sure who you can talk to if you have questions or concerns.
How do these challenges differ from those faced by long-term residents or citizens?
Long-term residents most likely have created a community they can lean on, as opposed to newcomers who might lack a sense of community at the start. This can make navigating the Canadian financial systems harder, as you don’t have anyone to turn to when you need help.
Financial Literacy Resources:
What essential resources or programs would you recommend to newcomers to help them improve their financial literacy?
There are a lot of great resources and programs out there for newcomers to improve their financial literacy.
One of them is Butterfly, a free budgeting app by Credit Canada. It was designed by newcomers, for newcomers and is available in Hindi, French, Spanish and English. It has a lot of newcomer-focused features like currency conversion, newcomer-specific questions, and average expense data for goods and services depending on your city.
Are there any specific government or community programs that are underutilized but could greatly benefit newcomers in budgeting and financial planning?
There are definitely underutilized programs out there that could greatly benefit newcomers in budgeting and financial planning.
At Credit Canada we offer free credit counselling and debt management services, and all our appointments are confidential. So if you need help with basic budgeting or want more information on how to establish a credit history in Canada, you can give one of our certified credit counsellors a call.
Practical Advice:
What practical advice would you give newcomers to effectively manage their finances during their first few years in Canada?
A basic budget is key. At Credit Canada, we use the Sustainable Spending Method, which is made up of three steps: Analyze, Brainstorm, Change. Or for short, A, B, C.
First, analyze your income and expenses. Determine your total net income (income that’s paid into the bank account). Differentiatebetween fixed and variable expenses. Fixed expenses are rent/mortgage, car insurance, utilities, medical. These are hard to reduce or eliminate from the budget. Variable expenses are groceries, entertainment, eating out. For some newcomers who are supporting their family back home, they might want to think about how much to budget each month, which would fall into the fixed expense category.
Then, brainstorm. Think up ways you can increase your income or decrease your expenses. There’s no pressure here to commit to anything; you’re just figuring out your options.
Finally, change. Pick out a handful of ideas you came up with in the brainstorming step, and really commit to these changes. With this method, you’ll be able to manage your finances like a pro!
Can you highlight any common financial mistakes that new immigrants should avoid and strategies to overcome them?
The most common mistake is signing up for too many credit facilities to establish a credit history. This will result in excess debt accumulation.
Less is more when it comes to credit rebuilding. A credit card with a small limit of $300-$500 can help one establish a healthy credit history. If you do see yourself in debt please get in touch with a credit counsellor at Credit Canada for a free consultation.
Personal Experiences & Stories:
Could you share any success stories of individuals or families who improved their financial situation through financial literacy initiatives?
I have a friend who moved to Canada back in 2016 as a student. Once they finished their course, they found themselves unemployed due to a lack of Canadian work experience. They ended up doing some volunteer work and doing part-time deliveries to save some money. When they finally received an offer for a full-time job, they took a couple more years to save money for their first home. They were able to take advantage of the First-Time Home Buyer’s Tax incentives.
How can newcomers draw inspiration and learn from the experiences of others who have successfully managed their finances in Canada?
Acknowledge that everyone’s experience is unique. Some are lucky to have help from their families and communities, some aren’t. When I found myself alone/isolated I used social media and meet-up groups to connect with other expats to create a sense of community. I was lucky to have a couple of friends who had gone through this journey. One of the first pieces of advice I received was to apply for a secured credit card to establish a credit history in Canada. This can be acquired from your bank. I was advised about the importance of establishing a credit history as it’s essential to find a new job, rent, and buy a new home. This was a valuable piece of information as I had come from a country that didn’t have the concept of credit score/ratings.
Budgeting Tools & Technology:
Are there any specific tools, apps, or technologies that you recommend for budgeting and financial management tailored to newcomers?
The following resources are a great place to start
- Butterfly – Credit Canada’s budgeting app for Newcomers
- Peacegeeks AI-driven Virtual Career coach for Newcomers
- Specific bank services (they all have programs) – Smart Progress at BMO etc.
- ICC’s Canoo app – Massive discounts just for Newcomers
- Credit Canada’s e-learning modules on credit scores– 4 free e-learning modules on credit scores in 8 languages.
How important is it for newcomers to stay updated with digital financial tools, and how can they navigate choosing the right ones?
Digital financial tools are a great way to keep track of finances as it’s an all-in-one place. With Butterfly, we use sustainable spending, or the analyze, brainstorm, and change method. You start with inputting your income and expenses This step helps you analyze your budget, as you can see what’s coming in and going out. The app will show you if you have a deficit or surplus. With this information, you can then brainstorm, which is the second step of this method. This step is all about how you could increase your income/decrease expenses. The app will provide suggestions based on your budget. Then comes the third and final step: change. Commit to one or two of the brainstormed ideas and make those changes. Next month, revist your budget, and see what additional changes you could make. A budget is a living thing that you update over time.
Cultural Sensitivity & Financial Planning:
How does understanding cultural differences impact the approach to teaching financial literacy to diverse communities?
Understanding different communication styles is key. Some cultures prefer direct vs indirect approaches. Choosing the right methods such as storytelling/visual aids can help teach financial concepts. There are cultural stigmas around personal finances that could create barriers towards learning. It is important for a facilitator to understand and acknowledge this to provide a more supportive environment for better outcomes.
What role does community support play in helping newcomers feel more confident in their financial decisions?
Getting support from your community will help build confidence for three reasons. Firstly, you’ll be able to discuss your financial decisions in your native language. Secondly, you’ll be able to discuss the financial norms and practices within your new environment with someone who has once also been new to it. Finally, it’sis really important to hear other people’s lived experiences and success stories so that you feel reassured and have a sense of security.
Final Thoughts:
What lasting piece of advice would you like to share with newcomers as they embark on their financial journey in Canada?
Moving to a new country can be both an exciting and challenging experience for newcomers. Understand the financial system and build credit wisely. Be cautious of scams and frauds while sharing personal/financial information and always verify legitimacy of the offers. Finally, engage with local community organizations that support newcomers.
How can the broader community help support financial literacy initiatives for immigrants and newcomers?
Education and mentorship programs in different languages with a focus on financial literacy can be crucial in helping immigrants navigate their new environment. These initiatives can help you understand financial systems, set and make informed financial decisions.
