As Canada continues to welcome more newcomers, there are concerns about the rising cost of living in the country. Inflationary pressures have led to increased expenses, making it challenging for newcomers to settle in their new home. However, there are several government supports and resources available to help newcomers manage costs and save money.
Current Situation
In 2022, Canada experienced the largest increase in the Consumer Price Index (CPI) since 1982, reflecting rising prices for goods and services. Additionally, a recent report revealed that nearly one in four Canadians couldn’t cover an unexpected $500 expense, with concerns about food and gasoline prices on the rise.
Federal Government Supports
The Canadian government has implemented various measures to address these issues through the Affordability Plan, representing a $12.1 billion investment. These measures include:
- Goods and Services (GST) Tax Credit: It’s doubled for six months, benefiting about 11 million Canadians with low or modest incomes.
- Canada Workers Benefit (CWB): This program provides biannual advance payments to low-income workers, with potential benefits of up to $1,428 for individuals or $2,461 for families.
- Interest-Free Student Loans: The federal portion of Canada Student Loans and Canada Apprentice Loans is now permanently interest-free.
- Canada Dental Benefit: Introduced to cover dental expenses for eligible parents or guardians with children under 12, if their annual family income is under $90,000.
- Other Measures: These include reducing childcare fees, increasing the Old Age Security (OAS) pension for seniors 75 and older, and indexing benefits to inflation.
Provincial Government Supports
Provincial governments also offer programs and services to assist residents in managing living costs, especially housing. Each province has its own specific programs and services, which vary depending on your province of residence.
Tools and Resources
In addition to government supports, newcomers can use various tools and resources to navigate expenses effectively:
- Budgeting Apps: Many free applications help with budgeting, such as banking apps, Mint, Koho, and YNAB.
- Savings Apps: Apps like Koho, Ampli, and PC Optimum offer cashback and savings on purchases.
- Smart Shopping Tools: Resources like Save.ca and Flipp help find discounts and deals, while browser plugins like Honey show price changes for online products.
- Essentials Savings: Loyalty programs (e.g., PC Optimum, Airmiles), price matching offers, and classified websites (e.g., Facebook Marketplace, Kijiji) help save on groceries, housing, and miscellaneous items.
- Travel and Transportation: Skyscanner, Tripadvisor, Transit, and GasBuddy offer ways to save on travel and commuting costs.
- Education: Online platforms like YouTube, SkillShare, Khan Academy, Coursera, Udemy, and more provide opportunities for skill development and education, often with free resources.
- Free Activities: Apps like Canoo and Eventbrite help discover low-cost leisure activities and events in your local area.
Navigating the rising cost of living in Canada is challenging, but with these government supports and resources, newcomers have options to manage expenses and save money effectively.
