Finances: Part II- In Transition

Hey everyone! I just wanted to say before starting this post that I have had trouble with my self-hosted website system. So, thanks to those who have notified me about not being able to interact on my blog. I will be switching to a new host soon, so bear with me! Fingers crossed it works out this time!

This is a continuation of my posts on expat finances. I am learning a lot as I go, especially now that I’m an adult and have more financial responsibility than I did when I previously moved to another country. See my previous post Finances: Part I- The Basics for my first post on this subject. Now, without further ado, let’s bust these money taboos!

Previous Experiences:

I was really young with my first two international moves. However, when I was old enough, my parents told me stories of their money experiences while transitioning and adjusting to a new culture.

When I repatriated to the US, things were relatively easy for me. I didn’t have assets in the UK, so I decided to move all my money to the US. Additionally, the exchange rates were favourable between the US Dollar and the Pound Sterling at that time.Β 

Financially Transitioning to A New Country:

There is a common misconception that Third Culture Kids are wealthy because of their mobile lifestyle. Family wealth is not always a factor in being able to move overseas. There are a variety of factors that make a mobile lifestyle possible. Companies can pay expenses for transitioning overseas, and include other perks for expats, so that’s a big deal. Additionally, it depends on where you are moving and how you move. Believe me, moving across an ocean and most, or all of another country can really compound the costs of moving. Plus, everyone’s situation is different, and people handle money differently.

As an example, I had to cancel my cell phone number in England before I moved. So far, I have been able to keep my US number while living in Canada. I had to upgrade my cell phone plan to allow calls within Canada and also be able to call the US when I have needed to do so. My initial plan was to change to a Canadian cell phone number after a month. However, Canada has some of the most expensive cell phone plans of any country, and I still have to make calls to the US now and then. I decided to keep my US cell phone number for a little while until I feel more financially stable.

Open A Bank Account Before or After Moving?

That’s a critical decision. When I moved to the US, there was no urgent need for me to have money there, so I waited until after I moved to open a bank account. However, with moving to Canada during the pandemic, I knew that I would have to quarantine for two weeks and I needed to be sure I had a bank account there. My Mum decided to wait to open one until after we arrived.

I bank with HSBC, so I was able to set up a bank account in Canada to be ready for when I got there. I had to go through an application and setup process that took some time, but it was worth it. Plus, I was able to sort out any problems before I moved! On the other hand, I couldn’t get a debit card for the account until I had arrived in Canada. After quarantine, I had to go to my branch to sign a couple more papers, and then I could get a debit card.

We realized later that I had the right idea all along. Additionally, we learned that the finances with moving to another country never really end, and it’s too much for one person to bear. Mum decided to take on extra tasks with moving so that I would have more bandwidth to deal with the finances. The reason why the situation ultimately worked out was that my Mum and I communicate well.Β 

Striking A Balance:

When you’re in transition, it’s not a time to cut corners. If you need to pay for something, suck it up and do it! I’ve had to pay more for my US cell phone plan, but so what? It works here in Canada and that’s all I ask! Plus, in my Quarantine Diaries Week 1 and Week 2, I talked about my Mum and I not getting our mattresses from Overstock. I caved and ordered them from Amazon because we had been sleeping on the floor for NINE days! We needed mattresses so badly we didn’t care about buying them again. Overstock delivered the mattresses a month later.

At the same time, unimportant costs can add up. As I said in my Finances Part I post, you are one decision away from making a financial mistake. I learned over the years to save any potential discounts for a time when I might really need them. There is no better time to use discounts than doing an international move.Β 

Want to know how much it cost me and my Mum to fly from San Francisco to Calgary via Vancouver? Nothing. We saved our credit card points for a time we really needed them. Of course, I offset our carbon emissions, and I was happy to put a little money towards it. My attitude was, “Sorry Mother Earth! I know you’re hurting, but my Mum and I need to get out of a crappy situation! Here’s a little something for you to say thanks.”

What You Need to Get Settled:

Again, it depends on your personal circumstances. You need to decide how much furniture you need to get and whether you actually need it. If your place is already furnished, great!

Sometimes, you can’t know what you need until you actually get there. My Mum and I had to buy PROPER winter clothes when we arrived. When my Mum was talking about getting winter clothes in California, I said, “You don’t go to California to get winter clothes.” Get what I mean?

Additionally, you have to get used to what shops are around when you move to a new country. I had to ask a Canadian friend what the difference is between Canadian Tire and Home Depot. Plus, when I discovered Co-ops in Calgary, I felt like a kid in a candy store! It was the best Co-op I had ever seen! Your general daily expenses are not going to settle until you decide where you like to shop and for what.

A Note on Healthcare:

Getting used to a new country’s medical system is something you need to budget for! Different countries have different rules for when new immigrants qualify for healthcare. That is if they have a government healthcare system.

In the UK, it took about a year to qualify for healthcare. Although, from what I saw with my family and friends, they don’t give quality healthcare to new immigrants until they have paid taxes for a while. In the US, you have to pay ALL medical bills until you get insurance! You absolutely MUST read the fine print of what your insurance covers! Plus, medical costs there are sneaky! You learn a lot of soft skills to save money on healthcare costs. For example, I decided early on what hospital I would want to go to if I had an emergency. I was certain of their quality care, but they didn’t charge me any out-of-pocket costs for using their resources like a hospital gown, or soap. It pisses me off that hospitals charge unreasonable costs that your insurance doesn’t cover!

How I feel when I hear about being absurdly overcharged for out-of-pocket costs:

Canada has a law that you cannot enter without health insurance. Plus, you have to live there a minimum of six months and one day to qualify for their government healthcare. That system works well because it’s a good time to get acquainted with a healthcare system before you qualify for care.

There are Cultural Ways of Dealing with M0ney:

You CANNOT ignore this! Countries will have different ways of banking, managing and transferring money and you have to work with it. It can feel overwhelming at times.Β 

Before my Mum and I moved to Canada, we had to put a deposit on our new apartment. The landlord told us how to send the money, but at first, I didn’t understand the instructions. I thought it was a simple wire transfer and the instructions didn’t make sense. Google didn’t help too much when I tried to find “what does ______ mean??” I figured because my ISP was in the US, I couldn’t access it.Β 

Eventually, I figured out the banking feature I had to use was called Interac eTransfer. Even though I had my Canadian bank account, I hadn’t really explored the features since I was busy moving. Then, I suddenly had to do a rent deposit and I was FREAKING OUT!!!! Plus, it seemed counterintuitive to me that there is actually a banking feature that doesn’t charge you fees for using it?! What kind of a country IS this where they don’t charge you for every banking service you use?! After a failed attempt at the Interac eTransfer the first time, I was going to blow like a volcano! Finally, I found a page on HSBC Canada about Interac eTransfer that explained it.Β 

Mum said, “you’re going to love this service someday!” She was right. There was so much stress the first time, but now I love it! Now, I look back on this story and laugh. That story is another reason why I was glad to open a Canadian bank account before I moved there. I don’t know what I would have done about the deposit if I didn’t have a Canadian bank account!

Final Notes:

Bottom line: It takes a MINIMUM of a few grand per person to get settled in a new country. The more you move to a new country, the better you get at making financial decisions. Mistakes don’t completely go away, but you’re less likely to make a serious one if you go by past precedent.

Additionally, it was a lovely surprise to find the best French patisserie in Calgary. Whenever someone does something nice for me or my Mum we get a box of macarons. When you’re an expat, you need a lot of help, and it’s really touching when people come through for you. There’s no better reward than seeing their faces light up when we give them macarons. You’re probably asking, “You have money for that?” The answer, “Yes, I have money for that.” I’m new here, and I’m building connections. Sometimes, I have moved and really been thrown into the deep end because people weren’t willing to help. Canadians are among the most generous people I have had the pleasure of living with, and I have given out a lot of boxes of macarons to say thank you!

What do you think? Do you agree or disagree with what I have to say about finances as an expat?

Author: winteroseca

I'm a Third Culture Kid who has lived in four different countries before and recently moved to Canada. Follow my blog about my life in Canada, plus expat life hacks and more!

20 thoughts on “Finances: Part II- In Transition”

  1. I read the whole post religiously! lol! You were right about all of them and it brought back my own memories actually! The first time I discovered eTransfer was at Fat Burger when I needed to give my share when having lunch with my friend. I went to my RBC mobile app and tried finding a way to give him his money! It changed my whole life at that moment! lol
    Glad to hear you’re getting used to Canada, although I bet it’s not easy to get used to the Albertan winters!

    1. Oh wow! eTransfer is definitely something that can throw you off when you move to Canada. I still sometimes fumble with it when I’m out, but it’s better now. It’s like what Trevor Noah says at the end of his routine about his first time having tacos, “So much stress… Now I love tacos!” Your experience sounds less stressful than mine though because I had to do a rent deposit by a deadline. I actually love the winters here. Calgary has its own microclimate, which helps a lot

      1. I heard that even though Vancouver doesn’t get as cold as the rest of Canada, other places get far more sunshine during winter after each snow. But I never had a friend from other provinces to confirm it! lol

      2. I can actually confirm that is true for Calgary. In fact, Calgary has actually really surprised me in terms of how sunny it is. It’s 52 degrees North, which is the same as London, but it couldn’t be more different. I was bracing myself for depressing London conditions, but it didn’t happen

      3. That’s amazing. I’ve been thinking of relocating to Edmonton or Calgary for a while (for housing prices). Now I’m more serious about it Thanks for the info.
        But how do people survive walking or shopping when the weather is like -4F in there?

      4. I get it. Housing prices are great. This is the only place where I can rent an apartment in the middle of the city. My family and I are talking about buying a house in the centre of Calgary.
        1. I don’t do Fahrenheit anymore thank you!
        2. Are you moving from BC or California because that’s exactly the kinds of questions two of my friends from California ask? Lol. I’m teasing πŸ˜‚
        3. You get proper winter clothes, get acclimatized to different temperatures and learn how to walk like a penguin to stop falling on any ice patches. My Mum has mobility issues, but she’s actually learned really well how to deal with it. Sometimes we need to get Uber if it’s really icy though. I do plan to do a post on my pro tips for winter though

  2. SUCH key advise! Oh the tears I cried dealing with the banking differences. No money, paycheck holds for 30 days, no food. HUGE lesson but would have much preferred to read this post years ago and learned the smart vs the hard way!

    1. Oh wow! Was that when you recently moved to Italy? That’s crazy you had to go through that. I have some crazy stories, but not like that. I did have a panic attack on my second night in Canada because of the stress though, and that was when my Mum agreed to take on extra tasks

      1. No that was when I moved to Canada actually. It was my first international move and it was a solo one. Glad your Mum agreed to help out a bit more. Sometimes just a hand till the anxiety passes is enough!

      2. Oh wow! That definitely sounds crazy, especially for your first international move! Yeah, finances can be too much for one person to deal with. Thanks for commenting 😊

  3. This really brought back memories of when I had to do all this! This is such great advice/information for anyone who may be moving to a new country.

    1. Thank you. It’s so weird because everyone has a different experience and every country has a price tag. There’s so much information that’s missing on this subject and makes me want to do something about it. Thanks for commenting! πŸ™‚

      1. Yay I can comment on your posts again!

        Yeah there was so little information when I moved so it’s nice that you’re sharing this information.

      2. Thank you. Yeah, it frustrates me no end and I plan to do more about this in the future! Watch this space! πŸ˜‰ Thanks for commenting 😊

  4. These are all great suggestions or things to be mindful of when moving to another country. I’ve lived in Canada my entire life, but my husband moved to Boston for a few years for work and had to deal with very similar issues, especially around healthcare.

    1. Thank you. Yeah, finances are a very real thing and it’s my first time playing a role in it. It’s not just listening to my parents’ stories anymore. Healthcare costs are ridiculous in the US! If you don’t know the soft skills too, you can lose a lot of money. Thanks for commenting πŸ™‚

  5. You raise very critical issues when moving to another country. The adverse effects on one’s personal finances would definitely influence one’s ability of success in your new home country.

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