How to deal with Canada’s rising cost of living: As Canada continues to accept more and more strangers, inflationary pressures and rising costs of living continue to raise questions about how much newcomers will have to pay to get settled in their new homes.
There are ways for newcomers to Canada to deal with the rising cost of living in the country, thanks to help from the federal and provincial governments and the resources available to people.
Read on to find out what kinds of help the government offers and what tools and resources you can use to control costs and save money.
The present situation
In the 2022 Consumer Price Index (CPI), which is a survey program run by the Canadian government and used to measure price increases by comparing a fixed basket of goods and services, Statistics Canada found that prices of goods and services in Canada went up the most since 1982.
Statistics Canada just came out with another report that said almost one in four Canadians couldn’t pay for an unexpected cost of CAD 500, and 44% of Canadians are also worried about the rising prices of food and gas.
The federal government helps
In reaction to these inflationary pressures and after the 2022 Fall Economic Statement, the Canadian government has put in place and kept in place several policies to help Canadians pay their bills.
Many of these policies have been put in place as part of the Affordability Plan, which is made up of several measures and costs the federal government CAD 12.1 billion.
One of the plans is doubling the Goods and Services Tax Credit (GST Tax Credit) for six months starting on November 4, 2022. About 11 million Canadians who have a low or moderate income will be affected by this change.
A single person without kids could get an extra payment of up to CAD 234, while a couple with two kids could get up to CAD 467 or more. Seniors (those who are 65 or older) will get an extra CAD 225 on average.
The Canada Workers Benefit (CWB) is another program that helps low-income workers, who often play important parts in the economy, earn more money.
In the Fall Economic Statement of 2022, it was suggested that qualified people get regular biannual advance payments of $4 billion over six years, starting in July 2023.
Through the tax return payment, the CWB can give up to CAD 1,428 to a single worker or up to CAD 2,461 to a family. This will help a lot to make up for the fact that prices are going up.
To make college less expensive, the federal government has also made the federal part of all Canada Student Loans and Canada Apprentice Loans interest-free forever. This is true for loans that are still being paid back.
In September 2022, the Canada Dental Benefit was put in place to help make dental care cheaper. This program gives qualified parents or guardians tax-free payments to cover dental costs for children under 12 years old.
People whose family income is less than $90,000 a year and who don’t have dental insurance can get up to $650 a year for the next two years.
Before the Fall Economic Statement of 2022, the government’s Affordability Plan has added several new steps.
These include lowering childcare costs by an average of 50 percent in Ontario, raising the Old Age Security (OAS) pension for adults 75 and older by 10 percent, and making sure that different benefits keep up with inflation.
Keep in mind that you may or may not be eligible for these programs, based on your situation and which program services you want to use. Visit our tax page here to learn more about the credits, perks, and refunds that the Canadian federal government offers.
The provincial government support
The provincial governments can also help with the rising cost of living, and most of them have their programs to help their people. It is also very important to know What is the future of the Real Estate Market in Canada?
Depending on the area you live in, these programs can help with things like medical bills, learning skills that employers want, getting help finding a job, childcare, workers’ benefits, and more.
Notably, it is mostly up to provincial governments to make sure that people have affordable housing and housing help. Here is a list of the services and programs pages for each state government, with information about each one:
- British Columbia
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia with housing programs listed here
- Prince Edward Island
Tools and resources
In addition to this government aids, people in Canada can also use a variety of tools and resources to figure out how to pay for their basic needs.
Budgeting: There are several free apps that can help newcomers plan their spending and make a budget. Tools like the planning app from your bank and third-party apps like Mint, Koho, and YNAB are easy and free ways to keep track of your spending;
Saving: Other places can help you save money and even give you cash back when you buy something.
Again, Koho is a popular choice in Canada, as are apps like Ampli and PC Optimum’s cash-back feature, which can be useful.
Cash-back plans usually only work with stores that are partners, so it’s important to check with each service to see where you can get cashback.
Smart Shopping: These tools give customers information about the goods they want to buy, such as price changes, better deals, and discount codes. Save.ca and Flipp are both well-known websites in Canada that search the web for deals.
Also, web browser add-ons like Honey make it easy to see if the prices of items you’re looking for online go down or up.
Food, groceries, and necessities: Newcomers can save money on their necessities by using a variety of tools, resources, and programs.
Tools like Flipp and Save.ca are useful, but newcomers can also use loyalty programs with their food store partners (like PC Optimum and Airmiles) to save money and get cash back on their purchases.
Also, many shops have price-matching policies that new customers can use to make sure they’re getting the best deal on everything they buy. Keep in mind that both depend a lot on the rules of each store, so it can be important to check all the important details;
Housing and other: Classifieds websites can be very helpful when you want to buy used items, swap items, or even find a place to rent or buy.
Apps and websites like Facebook Marketplace, Kijiji, Classifieds Canada, and others can save you money on all kinds of goods and help you avoid paying real estate agent fees when looking for a place to live.
Travel and Transportation: Canadians have access to several tools to help them travel and get around. For example, Skyscanner and Tripadvisor look for the best prices on airfare and room and board, respectively.
For more travel within the country, newbies can use apps like Transit and GasBuddy, which compare gas prices and public transportation costs to find the best deals.
Education: Many online resources, such as YouTube, SkillShare, Khan Academy, Coursera, Udemy, Codeacademy, Linkedin Learning, and others, can help newcomers learn new skills and continue their education at little or no cost to them.
These include Khan Academy, Coursera, Udemy, Codeacademy, Linkedin Learning, and others. Keep in mind that some of these sites may also offer paid classes, but most of the information is usually free; and
Activities that don’t cost money: Apps like Canoo can help you find free or low-cost things to do in your area. Eventbrite is also a great place to find out about free or cheap events near you. Here, too, it might be helpful to do another web search.
- The Canadian government offers assistance through the Affordability Plan, including tax credits, benefits, and interest-free student loans.
- Provincial governments have their own programs to help with medical bills, housing, childcare, and more.
- Use budgeting apps like Mint, Koho, and YNAB to plan spending and manage finances.
- Utilize cash-back apps like Ampli and PC Optimum to save money on purchases.
- Smart shopping tools like Save.ca and Flipp help find deals and discount codes.
- Access free or low-cost resources for education, entertainment, and activities through online platforms like YouTube, Coursera, and Canoo.
Q1: How can I deal with the rising cost of living in Canada?
A: There are several ways to cope with the rising cost of living. You can take advantage of government assistance programs, budget your expenses, use cash-back apps, and find deals through smart shopping tools. Additionally, explore free or low-cost resources for education, entertainment, and activities.
Q2: What government programs are available to help with the cost of living in Canada?
A: The Canadian government offers various assistance programs, including the Goods and Services Tax Credit (GST Tax Credit) for low and moderate-income individuals, the Canada Workers Benefit (CWB) to increase the earnings of low-income workers, interest-free federal student loans, and the Canada Dental Benefit for dental care coverage for children under 12.
Q3: How can I budget effectively to control my expenses?
A: You can use free budgeting apps like Mint, Koho, and YNAB to plan your spending and track your expenses. Creating a budget will help you understand where your money is going and enable you to make necessary adjustments to control your expenses.
Q4: What resources can I use for smart shopping in Canada?
A: Save.ca and Flipp are popular websites in Canada that help you find deals and discounts on products. You can also use web browser add-ons like Honey to track price changes and find better deals and discount codes.
Q5: Are there any programs to help with food and groceries expenses in Canada?
A: Yes, you can save money on food and groceries by using loyalty programs like PC Optimum and Airmiles, which offer cashback and rewards on purchases. Additionally, many stores have price-matching policies to ensure you get the best deal on your purchases.
Q6: How can I find affordable housing and transportation options?
A: To find affordable housing, you can use classified websites like Facebook Marketplace, Kijiji, and Classifieds Canada to search for rental or used items. For transportation, apps like Transit and GasBuddy compare gas prices and public transportation costs to help you find the best deals.
Q7: Are there any free or low-cost educational resources in Canada?
A: Yes, there are many online platforms like YouTube, SkillShare, Khan Academy, Coursera, Udemy, and Codeacademy that offer free or low-cost courses and educational content to help you learn new skills and continue your education.
Q8: Where can I find free or low-cost activities to do in my area?
A: Apps like Canoo and Eventbrite can help you discover free or inexpensive events and activities in your local area. You can also do web searches for more options based on your interests and location.
- Government Assistance.
- Government action to ease the financial strain.
- Canada Workers Benefit
- Interest-free student loans.
- Provincial Support.
- Smart Strategies like budgeting apps
- Free or low-cost educational resources.
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