One-fifth of New Canadians arrive with no money: report

Interesting survey by Pollara (BMO sponsored) on immigrant savings and spendings:

Immigrants arrive in Canada with an average of $47,000 in savings – but are left with less than half of that once they get initially settled, says a new BMO Wealth Management report.

And about one-fifth, or 19 per cent, come with no money at all, finds the study being released Wednesday.

“It can be incredibly stressful – financially and otherwise – to pick up, move to another country, and begin the process of creating a new life for yourself, so it’s great to see that new Canadians do have a bit of a nest egg remaining,” said Julie Barker-Merz, president of BMO InvestorLine.

After all the initial expenses associated with getting settled — including moving costs, flights, food, clothing and shelter for their family — immigrants are left with an average of $20,000, says the inaugural study Making the Financial Transition.

It found new Canadians spend their remaining money to save for various things, including retirement at 53 per cent, their children’s education at 49 per cent, large purchases like a home or a car at 44 per cent and a trip at 36 per cent.

Two-thirds send an average of $2,300 back home to friends or family, with 17 per cent doing so monthly and one-quarter sending money a few times a year, says the report examining a variety of financial issues for those who have moved to Canada less than 10 years ago.

Immigrants face numerous challenges when arriving to their new country, including lack of familiarity with the financial system combined with language barriers, Barker-Merz said.

“What will be critical is to make sure they make their remaining money work for them by acquainting themselves with the basics of saving and investing in their new environment,” she noted.

All banks compete actively for this business.

One-fifth of New Canadians arrive with no money: report | Toronto Star.