More than half of newcomers to Canada report experiencing significant financial stress within their first few years of arrival, according to newcomer financial well-being surveys. For many immigrants, the pressure is not simply about earning income. It is about navigating unfamiliar financial systems without a safety net, often while supporting families both in Canada and abroad.
That reality became clear for the Adeyemi family shortly after they arrived from Nigeria.
At 45, the father understood that starting over meant rebuilding everything at once. With three children aged 13, 10, and 8, education costs were no longer a distant concern. Housing expenses, daily living costs, and long-term stability weighed heavily on every decision. His wife, 42, worried about vulnerability. One illness, job loss, or unexpected expense could undo years of sacrifice.
Like many immigrant families, their early focus was on settlement. Financial planning came later. Experts say that delay often increases long-term risk.
Across the city, Nethmi, a 20-year-old immigrant from Sri Lanka, was navigating a different version of the same system. With limited income and no dependents, she recognized early that time itself is a financial asset. Decisions around saving, credit, and long-term investing, she believed, would shape her future far more than short-term earnings.
Kwame, a 30-year-old immigrant from Ghana, reached a similar conclusion through experience. After witnessing a family member’s sudden death without insurance coverage, he saw how quickly financial stability can collapse. Income alone, he realized, does not equal security.
Although their stories differ, they point to a shared pattern among newcomers: financial risk is often highest in the early years of settlement, yet financial planning is frequently put off.
To understand why, Mogaji ‘Tunde sought expert perspectives from certified financial professionals who work closely with immigrant communities.
Bose Odueke, a Certified Financial Planner, Publisher of Step to Your Financial Freedom, and Principal Consultant at Alpha Oasis International, says many immigrants delay planning because they associate it with wealth rather than preparedness.
“Financial planning is about structure, not status,” Odueke explains. “Immigrants often focus on income first, but without planning, they leave themselves exposed.”
She points to foundational tools such as education savings plans for children, diversified long-term investments, and life insurance designed to protect income and dependents. According to Odueke, even modest, consistent investments can compound significantly over time, particularly when started early.
For immigrants arriving in their 40s, she notes, timelines are compressed. Education funding and retirement planning often overlap sooner than expected, making early decisions critical.
Dr. Peju Afanu, a Certified Financial Advisor at Bsquare Management, highlights insurance as one of the most misunderstood aspects of financial planning among immigrants.
“Insurance is often seen as an expense instead of a strategy,” Afanu says. “But coverage such as life insurance, disability insurance, and critical illness protection plays a key role in preserving income and protecting long-term investments.”
Afanu notes that investment-linked insurance and structured savings options can help immigrants strike a balance between growth and protection, particularly those supporting families or building businesses while settling into a new country.
Data support these concerns. Studies indicate that many newcomers remain underinsured in their early years in Canada, even as settlement costs quickly reduce savings and increase financial vulnerability. At the same time, immigrants report high anxiety around financial stability, particularly when unexpected events arise.
As immigration continues to reshape Canada’s workforce and economy, these findings raise important questions. Why do so many newcomers delay financial planning despite heightened exposure to risk? And how can earlier access to financial education and trusted professional advice improve outcomes?
What emerges from both the data and lived experience is not a lack of ambition, but a lack of early clarity.
For immigrant families rebuilding their lives mid-career, young adults establishing roots, and professionals balancing multiple responsibilities, financial planning is increasingly less about wealth accumulation and more about survival, resilience, and control.
In a new country, financial success is rarely a matter of chance. It is built deliberately, through informed decisions, early action, and a clear understanding of risk.
Comments
Post a Comment