New TD Survey Reveals 76% of Newcomers Polled Fear Making Financial Mistakes

TD Newcomers Financial Confidence is being challenged by key gaps in financial knowledge, according to new TD research.  As Canada looks to encourage greater economic growth amid shifting economic and geopolitical forces, new research from TD reveals that many newcomers polled feel there is an information gap preventing them from achieving their financial goals and building a successful life in Canada. TD conducted surveys among both newcomers to Canada and the Canadian general population to uncover financial needs, barriers and opportunities.

According to the survey, 55% of newcomers polled say it was/is difficult managing their finances since arriving in Canada. A key barrier is understanding Canada’s financial system, which the survey revealed is a common challenge for all demographics, regardless of their age, income, country of origin or general financial literacy level.

• 38% of newcomers reported little to no understanding of the banking system in Canada and how to manage their money – compared to 25% of the general Canadian population.
• 51% of newcomers reported little to no understanding about investing money in Canada – compared to 35% of the general Canadian population.
• 41% of newcomers reported little to no understanding of the state of the Canadian economy – compared to 26% of the general Canadian population.

“Building a life in a new country can be both exciting and overwhelming. Newcomers face the pressure of adapting to a new way of life in Canada, while quickly getting on the right foot financially – from understanding banking products and services, to budgeting for living costs and future goals, while maintaining financial ties to family living abroad.” Janice Farrell Jones, SVP, Everyday Banking, Savings & Investing at TD. “This important research highlights the critical need to provide enhanced financial education, tools and resources, so newcomers can feel confident at all stages of their journey and make informed decisions to achieve their financial goals and succeed in Canada.”

Newcomers and general Canadian population polled fear making a financial mistake 

While newcomers polled reported lower confidence in understanding the Canadian financial landscape and economy, both newcomers and the general Canadian population alike feel anxious and overwhelmed about their finances. This underscores the additional barriers that newcomers may face while navigating a new financial system in a new country.

• 76% of newcomers and 68% of the general Canadian population fear making a financial mistake.
• 35% of newcomers and 31% of the general Canadian population feel embarrassed or judged when they seek financial support or advice.
• 56% of newcomers and 44% of the general Canadian population say they do not feel they have enough money to live comfortably in Canada.

When it comes to their top financial goals and priorities, newcomers polled are primarily concerned about financial stability and planning for the future:

• Feeling prepared for uncertain financial and economic situations (40%)
• Investing money effectively (37%)
• Saving for retirement (36%)
• Being debt free (32%)

In addition, 50% of newcomers polled said they are interested in starting a business in Canada. Despite this entrepreneurial ambition, 62% say they are not well informed about the financial products available to support business owners. 

“Financial confidence is a key part of the journey for those who are looking to build their lives in Canada.,” Farrell Jones adds. When newcomers feel financially secure, save and grow their wealth, and put their entrepreneurial energy to work, it makes the country more resilient, competitive and prosperous for all Canadians.

Canadian banks can play a critical role in creating an inclusive financial future for newcomers 

Farrell Jones also says: “Immigration will continue to be a vital economic driver for Canada. TD is committed to leveraging our experience and resources across the bank to help support newcomers, build welcoming communities, and contribute to the broader effort to help advance Canada’s growth and resilience. However, we recognize that we cannot do this alone. We believe that there is an opportunity for the financial industry and corporate Canada at large to help set up new and established newcomers for success. As Canada determines its path to economic prosperity, now is the time to strive towards creating an inclusive financial future for everyone who calls Canada home.”

TD is dedicated to supporting newcomers at all stages of their financial lives and in their Canadian journey, with product offerings to help drive financial knowledge and confidence. This includes multi-language support in TD branches, by phone and ATMs, and online; strategic relationships with CanadaVisa, HDFC Bank, and MPOWER Financing; and funding to support organizations including Prosper Canada’s Benefits Wayfinder online tool to search for government benefits, ABC Life Literacy’s Money Matters’ free introductory financial literacy program and Futurpreneur’s Newcomer Entrepreneurship Program.

Through the financial access pillar of TD Pathways to Economic Inclusion, TD’s social framework announced in 2022, TD seeks to improve access to banking through financial education and advice, as well as enhance or develop products, services and processes to remove barriers and help build financial health and resilience for customers, communities and colleagues.

By addressing TD Newcomers Financial Confidence challenges with better tools and education, Canada can make the financial future better for everyone by making it more open and strong.