Here’s an article I did for the Toronto Star featuring the financial literacy services at WoodGreen, both what I teach and the classes in the Immigrant Services Unit. Thanks to my three clients, Samatha, Soledad, and Hazel, for joining me in the photograph!
Back in Mumbai where she came from, Hazel D’Souza did most financial transactions in cash, so knew nothing about the hidden fees charged to her Canadian bank card.
Soledad Gasilan, a native of Manila, experienced a similar financial fright after moving to Canada. Short of cash one time, she sought help from a Toronto payday loaner, thinking the service was a godsend. Little did Gasilan know she would end up paying 38 per cent interest for the quick money.
Both new immigrants wish they could have enrolled sooner in a financial literacy program now offered at Toronto’s WoodGreen Community Services; the course helps newcomers manage their personal finances in this country and avoid the pitfalls associated with high-interest credit, service charges and other money matters.
WoodGreen is one of three agencies across Canada – the only one in Ontario – that receives funding from Citizenship and Immigration Canada for the pilot program called Financial Literacy for Newcomers.
Canadian statistics show income levels of new immigrants have declined over the last three decades and the proportion of newcomers who live in poverty has grown steadily.
For both Canadians and newcomers, a good foundation on the ins and outs of personal finance is particularly important with the recent economic recession, said Casey Cosgrove of the Canadian Centre for Financial Literacy, which initiated the pilot program.
Eight instructors have been trained at WoodGreen by the centre, established by Social and Enterprise Development Innovations and TD Canada Trust in 2008 to improve financial literacy among 4.7 million low-income Canadians.
“We found that quite often newcomers lack the language, terminologies and knowledge in financial services in Canada. That sometimes get them into all sort of trouble, losing money and getting into debt,” said Shaida Addetia, WoodGreen’s settlement services manager.
“It is very important that they acquire this knowledge because when new immigrants come to Canada, they get into a materialistic society where people buy things they can’t afford. We want to help them make informed decisions.”
The course covers everything from attitudes about money to basic banking and budgeting, credit and debit, insurance and taxes, basic consumer protection resources and investing in registered retirement saving plans, as well as wills and estates.
Though newcomers are known to be good “savers,” Gasilan said personal finance is a different animal in Canada which has so many products and services unfamiliar to them. The lack of knowledge makes them vulnerable to predatory sale pitches by financial companies, she added.
“Some of them are like sharks,” said Gasilan, 50, who just graduated from WoodGreen’s financial literacy class.
D’Souza, also a recent graduate, said her son recently got a credit card and was surprised to see a $42 service charge on all the cash withdrawals and miscellaneous services he put on the card. “Everything is in the fine print. You really have to be careful,” said the 57-year-old mother of two.
At WoodGreen, the financial literacy course is incorporated into its regular English language training program for newcomers or offered alone in two four-hour sessions in the evening. It also offers the training in another program that helps women acquire life skills to be financially independent. All programs are free.