A recent TD survey has identified significant financial knowledge gaps among newcomers to Canada, with potential implications for the banking and insurance sectors as they look to support a growing segment of the population.
The research found that 55% of newcomers surveyed said managing their finances since arriving in Canada has been difficult. Understanding how the Canadian financial system works was cited as a key barrier, one that cuts across age, income and prior financial literacy levels.
According to the findings, 38% of newcomers said they had little to no understanding of Canada’s banking system and how to manage money, compared to 25% of the general population. Similarly, 51% of newcomers reported limited knowledge about investing, and 41% said they did not have a clear understanding of the state of the Canadian economy.
The report suggested that the financial services sector may have an opportunity to improve outreach and engagement with newcomers, many of whom are navigating unfamiliar systems while managing competing financial pressures.
“Newcomers face the pressure of adapting to a new way of life while trying to get a handle on day-to-day finances—from understanding banking products to budgeting for living costs and long-term goals,” said Janice Farrell Jones, SVP, Everyday Banking, Savings & Investing at TD. “This research points to a need for stronger financial education and support.”
The survey also found that many newcomers are cautious about financial decision-making. Around 76% expressed concern about making mistakes, and more than half said they do not feel they have enough money to live comfortably in Canada. About a third said they felt embarrassed or judged when seeking financial advice.
Despite these challenges, many newcomers identified long-term financial priorities such as planning for uncertainty, investing, saving for retirement, and paying off debt. Half of those surveyed said they were interested in starting a business in Canada, but 62% said they did not feel well informed about financial products designed for entrepreneurs. This lack of awareness may extend to business insurance options, including coverage for liability, property, or business interruption.
Farrell Jones noted that broader industry involvement is needed: “Immigration will continue to be an important economic driver. There is an opportunity for financial institutions and the private sector to help newcomers succeed and contribute to Canada’s long-term growth.”
