Saving Tips for New Canadians

The cost of living in Canada is among the highest in the world—higher even than most other developed countries. For newcomers, it can be challenging to adjust to these high costs while also saving and investing for the future. There are ways to cut costs though, and Canadians have learned some that might be new to you.

Here are 10 tips to help you save money, so you can make your financial goals a reality.

1. Save on groceries 

A Canadian family of four spends about $1,227 a month on food, so finding savings at the grocery store can make a big difference to your budget. Shopping at a discount retailer can be a good start. Most of Canada’s big grocery retailers operate discount stores that carry many of the same products at a lower price.¹ Some independent and specialty grocery stores also offer low prices, plus often carry ingredients like you’d get at home. Saving apps like Flipp can also help you find weekly deals 

Meal planning – deciding on and preparing meals for the week ahead of time – is another way to save money, as it’ll help you only buy what you need and use up the ingredients you do buy.

Many Canadian grocery retailers also offer loyalty programs – which give you points when you shop that you can later redeem to pay for purchases. For example, RBC has the Metro + Moi Rewards program.

2. Lower your utility bill 

Canadian winters might be something else you need to adjust to, and heating your home through the colder months can get pricey. To save money, you can add weather stripping around your windows and doors will keep out icy drafts, which can prevent up to 25% of your home’s heat loss. Installing a programmable thermostat can also help, as you can set the temperature lower when you’re asleep or not home. You can also check if your electricity provider charges less for usage at off-peak times, and if they do, schedule high-energy-use chores (like laundry—especially using the dryer) accordingly. Even something as simple as swapping out an old shower head for a newer water-saving one could cut your hot water usage in half,² and save you money on both your water and household energy bills.

3. Shop second-hand

Hand-me-downs and swap-meets are part of Canadian life, so don’t be shy to check out thrift stores, rummage sales or online marketplaces like Facebook Marketplace, Kijiji and the Karrot app. You can often find gently used clothing, furniture, household goods and other items in excellent condition. Many teenagers have even gotten into the thrift trend, using vintage fashions to express their personal style.³

4. Anticipate annual sales

If you need to buy new items, it might be worth waiting for one of Canada’s annual retail sales. Some examples are deals on bedding and towels (known as White sales) available in January and back-to-school deals on children’s clothing and school supplies available from August until Labour Day (the first Monday in September). While Canadians celebrate Thanksgiving in October, many of our retailers have embraced the Black Friday and Cyber Monday sales around American Thanksgiving (the fourth Thursday in November). Finally, most Canadian stores have annual Boxing Week sales at the end of the year, right after Christmas. Sign up for store newsletters to get notified about sales and discounts.

5. Consider living without a car

Owning a car in Canada costs an average of $1,387 a month⁴ once you factor in the price of insurance, gas, parking and maintenance. The high cost is why many people living in Canada’s largest cities don’t bother with car ownership. To save money on transportation, you can use public transit and ride-sharing services. If you’re tight on time, or need to be punctual, you could also consider using a car-sharing service such as Zipcar or Communauto.

6. Access community resources 

One of the best things about living in Canada is the vibrant variety of free or low-cost community services. In addition to lending out books, dvds and more, many public libraries offer services like internet access and printing, and host events such as resume workshops. Libraries often also allow you to borrow e-books or audiobooks, and use free platforms⁵ to watch movies and other video content from home. 

Community centres also often host free or low-cost classes, workshops and fitness programs, and parks provide a budget-friendly way to enjoy outdoor activities. Keep an eye out for local events like movie nights, street festivals, public art displays and farmers’ markets. These activities let you enjoy community without breaking the bank.

Look for newcomer-serving organizations in your area which may be able to recommend other local resources.

7. Apply for Canadian benefits

There are some government benefits available to Canadian residents,⁶ including

• The GST/HST tax credit, which is a rebate on federal sales taxes

• The Canada Child Benefit, payments to help families with children up to age 18

You will only have access to some of these benefits once you have filed taxes for the first time, so you might not be eligible for them right away. For some, you’ll need to apply to find out if you’re eligible, but first you’ll need to get a Social Insurance Number, or SIN. To get a SIN, visit a Service Canada office.

8. Drink tap water

While some Canadians prefer the taste of bottled water, the water provided by municipal utilities is safe to drink out of the tap. In fact, the quality standards in Canada for bottled water and tap water are similar,⁷ so there’s no need to pay extra for bottled. If tap water isn’t to your taste, a household water filter (or a slice of lemon) might win you over.

9. Know when to negotiate

Generally, it’s not acceptable in Canada to negotiate prices when shopping retail, but there’s one major exception: car shopping. In that case, it’s not only okay to negotiate, it’s expected. To make sure you get a fair price, find out the vehicle’s market value from a reputable pricing website such as the Kelley Blue Book. November and December are usually the best months to buy a car, as dealers are eager to clear out old models and motivated to sell.

You can also sometimes negotiate the price on services such as insurance, internet and mobile phone plans.  When speaking with service providers, consider asking if they can match a competitor’s price or offer a discount.

10. Use the right banking tools

Many Canadian credit cards offer cash back or other rewards on purchases, which can help you stretch your dollars. Look for cards that complement your spending habits, like those offering rewards on groceries or gas.

Finally, you might want to consider investing any money you save, so that it can grow. One way to do this is to set up pre-authorized contributions from your chequing account to your investment accounts. That will allow you to add to your investments regularly, without being tempted to spend your savings.

Sources

^1. _{Global News, “Major grocers invest in discount stores as customers keep budgets tight”, March 2024}

^2. _{SaveEnergyNB, “Why Water Efficient Showerheads Work Better and Feel Better”, March 2022}

^3. _{CBC News, “More people turning to second-hand items, say Sudbury, Ont. stores”, January 2024}

^4. _{Ratehub.ca, “What is the total cost of ownership for a car”, February 2025}

^5. _{Chatelaine, “How To Watch Movies For Free Thanks To Your Local Library”, October 2021}

^6. _{Government of Canada, “Newcomers to Canada and the CRA”, March 2025}

^7. _{Government of Canada, “Frequently Asked Questions about Bottled Water”, December 2013}