Dreamt of studying in Canada with its world-class education system and vibrant multicultural environment? You have taken the first steps by gaining admission and getting your permit approved? Congratulations! However, before you embark on this exciting journey, it’s crucial to meticulously plan your finances, understand how currency exchange works, and stay informed to avoid any potential pitfalls. This guide is designed to help you navigate the essential aspects of studying in Canada, ensuring a smooth transition. This guide is for you whether you are coming to study alone or with your family.
Click the links below to skip to the key topics covered in this guide,
Setting the Foundation
1. Understanding Tuition and Fees
Before you pack your bags, it’s essential to understand the financial commitment involved in studying in Canada. Unfortunately, many students miss their payment deadlines simply because they didn’t have a solid financial plan in place. Make sure you’re aware of the specific fees for your institution and program by checking the official website and familiarizing yourself with the payment schedule. Additionally, explore scholarship opportunities and financial aid options, as some universities and organizations offer such support to international students.
2. Living Expenses
Living expenses in Canada vary significantly depending on the city you choose. For families, these costs will naturally be higher. Here’s a rough breakdown of average monthly expenses for a family of four:
- Accommodation: CAD 1,200 – CAD 2,000
- Food: CAD 300 – CAD 600
- Transportation: CAD 150 – CAD 300
- Internet: CAD 50 – CAD 70
- Miscellaneous: CAD 800 – CAD 1,000
Cities like Vancouver and Toronto are more expensive, while provinces like Alberta, Manitoba, and Quebec could offer a lower cost of living. For example, in Montreal, you might find a cozy two-bedroom apartment for around CAD 1,500 per month. It might take some searching, but it’s worth the effort!
3. Health Insurance
Health insurance is mandatory for international students and their families in Canada. Costs can vary by province but generally range from CAD 600 to CAD 1,500 per year. Some universities include health insurance in their tuition fees, and it is your responsibility to verify this with your institution. Ensuring you have coverage at all times is crucial to avoid issues, especially in provinces like Quebec, where health insurance is tied to CAQ renewal or extension.
Cities like Vancouver and Toronto are more expensive, while provinces like Alberta, Manitoba, and Quebec could offer a lower cost of living.
FSG Xchange
Currency Exchange Advice
1. Choose the Right Time to Exchange
Currency exchange rates fluctuate, and timing your exchanges wisely can save you a considerable amount of money. Monitor the Naira to CAD exchange rate using financial news websites or apps to track real-time rates. We’ve noticed that rates tend to increase around the end of the month when rent and utilities are due, during peak travel seasons like summer and winter, and when new school terms begin.
2. Use Peer-to-Peer Platforms
Traditional banks often offer less favourable exchange rates and charge high fees. Using peer-to-peer exchange platforms like FSG Xchange can help you secure better rates and lower transaction costs. As a platform created by Nigerians in Canada for Nigerians, we understand the challenges of converting Naira to CAD and vice versa. Always compare rates from multiple platforms to ensure you’re getting the best deal.
3. Avoid Multiple Small Transfers
Each transfer incurs a fee, so it’s more cost-effective to transfer larger amounts less frequently. Plan your finances to minimize the number of transfers you need to make. At FSG Xchange, your first two transactions are free and thereafter, we charge a 1% commission on transactions, meaning your transaction costs remain consistent whether you’re transferring large or small amounts.
Make Your Money Last
Create a Monthly Budget
A well-planned budget helps you manage your expenses and avoid financial stress. You’ll be glad you planned ahead when those bills start rolling in at the end of the month. Key areas to budget for include:
- Accommodation
- Food
- Transportation
- Internet and Phone
- Clothing & Miscellaneous
- Health Insurance (if not paid annually)
Use budgeting apps like YNAB to track your spending and stick to your budget. We’ve also curated a list of helpful budgeting apps on our Instagram page—check it out!
2. Save on Accommodation
If you are looking to rent, consider renting a family apartment or house with other students or workers, splitting the rent and utilities. Websites like Realtors, Kijiji, Craigslist, and Facebook Marketplace are great resources for finding affordable housing options .
3. Cook at Home
Eating out frequently can quickly drain your budget. Cooking at home is not only healthier but also more economical. Plan your meals and buy groceries in bulk to save money. If you’re coming to Canada to study with your family, consider paying for a Costco membership. Costco offers excellent deals on bulk purchases you can only take advantage of by been a member.
4. Use Student Discounts
Many businesses in Canada offer discounts for students. Always carry your student ID and ask if a discount is available. Programs like SPC (Student Price Card) offer additional savings. For example, Société de Transport de Montréal, Montréal’s transport system provides a 40% discount on monthly fees for student-registered OPUS cards.
5. Work Part-Time
International students in Canada are allowed to work up to 24 hours per week during the academic year and full-time during scheduled breaks. This can help offset some of your living expenses. However, you must ensure your study permit allows you to work, and register for a Social Insurance Number (SIN) to get started.
Preparing for the Future
Stay informed about new regulations regarding the Post-Graduation Work Permit (PGWP) eligibility. Starting September 1, 2024, significant changes now affect the eligibility criteria including requirements for in-class attendance, program duration, and qualifying programs for a spousal open work permit. If you’re planning to study in Canada with your spouse, ensure your chosen program as the principal applicant meets the new PGWP eligibility criteria and that your institution is a Designated Learning Institution (DLI).
Conclusion
Preparing to study in Canada involves more than just academic readiness; it’s about being financially prepared and savvy. By understanding tuition fees, planning for living expenses, making smart currency exchanges, and budgeting wisely, you can make your dream of studying in Canada a reality without breaking the bank. Remember, every dollar saved is a dollar that can be used to enrich your experience in this beautiful country. We wish you great success and say “welcome to Canada!”