Financial Management Canada: Studying in Canada is an exciting experience full of opportunities and challenges. One such challenge is managing finances as an international student in Canada. If you are planning to escalate your career to new heights with overseas education, this blog is just for you! In this blog, we will discuss some of the strategies for budgeting and managing finances as an international student in Canada. Keep reading further!
Table of contents
Understanding the Cost of Living in Canada
It is really important to estimate the cost of the country you are moving to. The total cost of living in Canada includes the cost of various things like the cost of accommodation, the cost of studying, the cost of utility bills, and much more. Major cities like Vancouver and Toronto tend to have a higher cost of living as compared to that of smaller cities. Take a look at some of the basic facts related to the cost of living in Canada.
| Population | 38,957,266 (as of January 2024) |
| No. of international students | Over 9 lakh (as of 2023) |
| Popular cities for international students | Montreal, Toronto, Vancouver, Ottawa, Quebec City, and Calgary. |
Strategies for Budgeting
Taking reference from the above table, jot down all the expenses you will be having in Canada. To maintain a healthy budget keep track of your personal expenses and these essential bills you need to pay on a monthly basis. The cost of living in Canada is quite high in comparison to the cost of living in India. It is really important to decide and allocate the budget accordingly to avoid any kind of financial worries in the future.
The style of living directly impacts the cost of living in Canada. For example, if you are an international student, you should prefer on-campus living as on-campus accommodations in Canada are quite cost-effective and cheaper. Also, if you are living off-campus, then consider living in shared accommodations in Canada. This will help a lot in sharing the cost of accommodation, study material expenses, meals spending, etc.
Be sure to avail student discounts whenever and wherever possible. Try using public transportation because that can save a lot of money. Also, residing in the accommodation in the vicinity of the college can save your commutation cost and time. Many businesses, public transportation systems, and even cultural institutions offer discounted rates for students. Try to get an International Student Identity Card (ISIC) for exclusive discounts.
Plan the budget in advance. You can also use an online student budget calculator or the budget calculator apps available for strategic planning. There are apps like Mint, YNAB, and PocketGuard which are quite helpful in keeping you stuck to your budget. Divide and allocate the funds as per the availability. Always set a limit to review your expenses and transactions on a regular basis.
Work While Studying in Canada
This is the key to managing finances while studying in Canada. Explore some of the best and possible employment opportunities that complement your studies and add experience to your resume. There are many universities that offer on-campus employment programs for international students. Be sure to check out those programs.
Also, the Government of Canada offers various employment opportunities and programs that are specifically for international students. But, don’t miss to check out the number of hours you can work as per your study permit regulations. An international student is allowed to work up to 20 hours per week during designated holiday periods as per study permit regulations.
Also Read: Facing difficulties in managing your education loan repayment? Check this blog and understand all about Education Loan Restructure!
Scholarships and Grants for International Students
There are scholarships and grants available for international students. There are some government scholarships for international students and non-government scholarships to study in Canada. With the aim of providing a helping hand to talented and brilliant students of India the government of Canada provides scholarships to meritorious students.
Don’t miss to check out the scholarships and apply for the ones you are interested in and eligible for. Research thoroughly and apply for the scholarships as it will help you a lot in managing finances. Generally, the government of Canada provides 100% scholarships which will cover your tuition fees and other academic expenses.
Opening a Bank Account in Canada
Opening an international bank account is one of the most important things you should do on a priority basis after landing in Canada. This will help you a lot in managing your international transactions and spending in Canada as well. This will simplify your financial transactions and avoid any excessive fees associated with international money transfers.
Before opening an account in Canada, be sure to check out the banks and branches available in proximity to your campus. Compare the services offered by them and also check out for the charges associated with the account. Don’t miss to enquire about the hidden fees or charges. Also, find out the reliable method to convert your home currency into Canadian dollars.
Understanding Taxes and Filing Requirements
The filing of taxes actually depends upon the income and circumstances. Check out the official website of the government of Canada or consult the Canada Revenue Agency to enquire about the taxes to be filed. You can seek professional advice as well to have a detailed discussion on taxes to be paid by the students in Canada.
Establish an Emergency Fund
An emergency fund is the most essential thing to which you should allocate your budget. While being an international student in Canada, it is essential that you should be ready for any unforeseen circumstances, medical emergencies, or unexpected travel requirements. Try to allocate emergency funds for at least three months or six months as it will help you out in the future. So, be prepared to create a financial safety net with your income regularly.
Also Read: Interest Rate increased on existing education loan? Check this blog and learn all about Education Loan Refinancing!
Tips for Managing Your Expenses in Canada
Saving is the key to successful financial planning. Be sure to maintain a balance between your needs and wants. Always allocate your budget as per your needs and wants. Here are our top tips for managing expenses
- Spend your funds wisely as per the priority.
- Allocate funds as per your needs and wants.
- If using credit cards, don’t miss to make monthly payments.
- Go for second-hand things to cut down your expenses.
- Be prepared for Canadian winter clothes, allocate funds accordingly.
- Be realistic, practical, and accurate during financial planning.
- Always adhere to your budget.
- Keep visiting your budget regularly and make necessary changes.
- Allocate the crucial portion of your budget to non-negotiable essentials.
- Prepare meals for cost-effective pricing and healthy food.
- Take advantage of student discounts on restaurants, hospitals, and transportation.
- Consider sharing accommodation. Research and compare costs before moving in.
- Prefer public transportation and take advantage of student transportation passes.
- Save medical expenses with on-campus low-cost activities.
- Seek scholarships and grants to ease your financial burden.
- Reduce the financial burden with on or off-campus part-time employment opportunities.
FAQs
The cost of living in Canada varies depending on the city, lifestyle, and other choices. Students should plan CAD 15,000 to CAD 20,000 yearly as the cost of living in Canada.
The Canadian government allows students to work while studying. Students can work part-time to earn while studying in Canada.
International students can explore scholarships, bursaries, and financial aid programs offered by their universities.
An emergency fund is the savings saved for unexpected expenses. The students must always allocate some funds for emergencies.
The best way to save money on textbooks and study materials is to go for renting options or explore digital resources.
Hope you find our blog informative and helpful where we have covered strategies for budgeting and managing finances as an international student in Canada. If you are planning to study in Canada, be sure to plan and manage your finances in advance. This will help you a lot in smoother and more effective financial management during your academic journey.
To know more about the scholarships and grants, the best bank accounts for students, forex and banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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