A Filipino Newcomer’s Guide to Budgeting and Saving

As you settle into life in Canada, the way you manage your money may change. You may have new expenses and responsibilities. You may also begin planning for further education, a home or retirement.

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A budget may help you turn those plans into practical savings goals. It may also help you account for the responsibilities that are part of your life today. For some Filipino newcomers, this may include contributing to a multigenerational household, saving for a wedding or other family celebration, or regularly supporting relatives abroad. Whatever your priorities, understanding where your money goes is a useful first step.

1. Identify your financial goals in Canada

Begin by listing the goals that are important to you and your family. These may include:

• Paying for education or professional training
• Buying a vehicle
• Saving for a home
• Planning a wedding or another family celebration
• Supporting parents or relatives
• Building an emergency fund
• Saving for retirement

Once you have listed your goals, estimate how much each one may cost. Remember to include related expenses. For example, the cost of a vehicle may include insurance, fuel, registration, maintenance and parking. A wedding budget may include clothing, travel, accommodations and celebrations in Canada or another country.

Next, decide when you hope to reach each goal. Some needs may be immediate, while others may be several years away. Setting a timeframe may help you estimate how much you need to save each month.

You may not be able to work toward every goal at the same pace. Consider which expenses are most urgent and which ones may be adjusted or postponed. If family members are contributing, discuss how much each person may be able to provide and when the money will be needed.

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2. Build a budget around your priorities

A budget provides a picture of the money you receive, spend and save. Start by recording your monthly income from employment, benefits or other regular sources. If your income changes from month to month, you may want to use a lower or average amount when planning.

Next, list your regular expenses, including:

• Housing and utilities
• Groceries and household items
• Transportation
• Childcare
• Insurance
• Phone and internet services
• Loan and credit card payments
• Family support and international money transfers
• Savings

Remember to include expenses that do not occur every month. School supplies, winter clothing, vehicle maintenance, annual fees, gifts, religious or cultural celebrations and travel may be easy to overlook. You may estimate the annual cost and set aside a smaller amount each month.

For example, if you expect to spend $1,200 on an annual expense, saving $100 each month may make that cost easier to manage when the time comes.

If you regularly send money to relatives abroad, include these transfers as part of your budget. Consider the amount sent, how often you send it, the exchange rate and any applicable fees. Exchange rates may change, so the amount your recipient receives may also vary.

TD customers may use TD Global Transfer ^TM through the TD app or EasyWeb to send money internationally using available transfer methods. Limits, fees, exchange rates, eligibility requirements and delivery times may vary by transfer option.

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After listing your income and expenses, look at how much may be available for savings. If the amount is less than you expected, review your spending categories and decide whether any costs may be reduced or delayed.

A budget may help you balance everyday expenses, family responsibilities and your longer-term goals.

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3. Make saving part of your routine

Saving regularly may be more manageable than trying to find a large amount of money at once. Choose an amount that fits your current budget, even if it is smaller than your eventual target.

You may consider arranging an automatic transfer from your chequing account to a savings account on or shortly after payday. This may help make saving part of your regular routine.

Keeping savings for major goals separate from the money used for everyday expenses may also make progress easier to track. You could use separate savings accounts or keep a written or digital record for each goal.

For example, you may divide your monthly savings among:

• An emergency fund
• A future home or vehicle
• Education costs
• A wedding or family celebration
• Retirement or another longer-term goal

Review your plan regularly. A change in income, rent, childcare costs or family responsibilities may affect the amount you are able to save. Adjusting your contribution does not mean giving up on the goal. It may simply change the timeframe.

If your income increases or you receive a tax refund, bonus or financial gift, you may choose to put some of that money toward one of your savings goals.

4. Plan for unexpected expenses

An emergency fund is money set aside for costs that you did not plan for. These might include a sudden vehicle repair, an urgent trip to support a family member or a period of reduced income.

Try to keep emergency savings separate from money intended for planned expenses. School supplies, holiday spending and regular travel are not emergencies if you know they are likely to happen. Including them in your budget may help you prepare for them in advance.

The Financial Consumer Agency of Canada suggests aiming over time for the equivalent of three to six months of regular expenses or income. That amount may not be realistic immediately, particularly while you are getting established in Canada.

You may begin with a smaller target and add to it gradually. Even a modest fund may help cover part of an unexpected expense and reduce the amount you need to borrow. Revisit your target as your income, household costs and family situation change.

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5. Get support as your goals grow

Your priorities may change as you become more established in Canada. You may move from covering immediate settlement costs to saving for a home, your children’s education or retirement.

TD offers newcomer banking support in more than 80 languages, including Tagalog / Filipino. Speaking with a banking professional in your preferred language may make it easier to ask questions and understand the options available for different goals.

Banking tools may also help you monitor your budget. For eligible TD customers, the TD MySpend app may track spending and deposits from eligible Canadian-dollar TD personal banking and credit card accounts. It may also categorize expenses and help customers monitor progress toward savings goals.

A financial professional may help you review your priorities, understand financial products and consider how different goals may fit within your budget. Your plan may continue to change as your family, income and responsibilities evolve.

Key takeaway: Major financial goals may take time. A realistic budget and regular savings habit may help you make progress while balancing your other priorities.

Why Choose TD?

More than 160 years of helping Canadians:

TD has a proud history of delivering financial solutions to Canadians for more than 160 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.

TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.

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Sources

Financial Consumer Agency of Canada. “Making a Budget.”
https://www.canada.ca/en/financial-consumer-agency/services/make-budget.html

Financial Consumer Agency of Canada. “Setting Up an Emergency Fund.”
https://www.canada.ca/en/financial-consumer-agency/services/savings-investments/setting-up-emergency-funds.html

TD Canada Trust. “New to Canada.”
https://www.td.com/ca/en/personal-banking/solutions/new-to-canada

TD Canada Trust. “Send Money Internationally with TD Global Transfer ^TM.”
https://www.td.com/ca/en/personal-banking/ways-to-bank/ways-to-send/international-money-transfer/td-global-transfer

TD Canada Trust. “TD MySpend.”
https://www.td.com/ca/en/personal-banking/solutions/ways-to-bank/td-myspend