New immigrants more likely to cite saving for their kids' education than other financial goals, RBC study

    TORONTO, Nov. 16 /CNW/ - When it comes to financial goals, more new
immigrants to Canada include saving for their children's education than saving
for their own retirement or even paying down a mortgage. This is according to
an RBC/Ipsos Reid survey that shows regardless of tenure or country of origin,
new Canadians clearly have education on their minds.
    While most new immigrants (70 per cent) who have been in Canada 10 years
or less are still focusing on having enough money to cover daily expenses, the
RBC survey shows 46 per cent identify saving for their children's education as
a financial goal for the next 12 months. This compares to 41 per cent who cite
saving for retirement and paying down the mortgage (40 per cent).
    "While covering day-to-day expenses is still top-of-mind for most, many
new Canadians are already looking to the future and their children's
education," noted Mark Whitmell, RBC's director, Cultural Markets. "This
doesn't entirely surprise us as new Canadians are likely to have more
education than the overall population. In fact, we learned more than
two-thirds (68 per cent) have at least some university education."
    The RBC survey shows the combined average top financial goals for the
next 12 months of new immigrants to Canada (who have been here ten years or
less) regardless of ethnicity, as:
    -   Day to day expenses: 70 per cent
    -   Saving for children's education: 46 per cent
    -   Saving for retirement: 41 per cent
    -   Paying down the mortgage: 40 per cent
    -   Saving for a major purchase other than real estate or property:
        37 per cent
    -   Saving in the event of illness or death in the family: 33 per cent
    -   Saving to buy a home (27 per cent)
    -   Saving for expenses relating to aging parents (22 per cent)
    -   Owning a business or saving for own education (20 per cent each)
    -   Paying down debts other than mortgage (19 per cent)
    -   Saving for or paying off home renovations (12 per cent)

    By tenure, the RBC survey shows the top five financial goals of new
immigrants over the next 12 months as:

    less than 3 Years        3 - less than 5 Years      5-10 Years
    in Canada                in Canada                  in Canada
    Daily expenses           Daily expenses             Daily expenses
    (77%)                    (65%)                      (70%)
    Children's Education     Children's Education       Children's Education
    (50%)                    (47%)                      (44%)
    A major purchase other                              Retirement
    than real estate                                    (43%)
    property                 Paying down mortgage       Paying down mortgage
    (39%)                    (44%)                      (43%)
    Retirement               Retirement                 Saving in the event
                                                        of an illness or
                                                        death in the family
    (36%)                    (42%)                      (35%)
    Own Education            Major purchase             Major purchase
    (35%)                    (41%)                      (34%)

    By ethnicity, the top five financial goals of new immigrants over the next
12 months are:

    Chinese                  South Asian                Other
    Daily expenses           Daily expenses             Daily expenses
    (64%)                    (75%)                      (71%)
    Children's Education     Paying down the mortgage   Children's Education
    (51%)                    (38%)                      (48%)
    Retirement               Children's Education       Paying down the
    (45%)                    (36%)                      (47%)
    Saving in the event of
    an illness or death in
    the family               To buy a home              Retirement
    (34%)                    (36%)                      (44%)
    A major purchase other   Saving in the event of     A major purchase
    than real estate         an illness or death in     other than real
    property                 the family                 estate property
    (30%)                    (34%)                      (43%)

    "We initiated this study of immigrants who have been in Canada 10 years
or less because one of our priorities is to ensure they are in the best
position they can be to settle in Canada successfully," explained Mr.
Whitmell. "Having a better appreciation of what matters most to newcomers
gives us a better perspective on how we can help them achieve their goals
faster and easier."
    One of the ways RBC is helping new Canadians is through the RBC Royal
Bank Scholarship for New Canadians which awards seven immigrant students with
a cash prize of $2,000 each toward education expenses. This year's winners, to
be announced at a dinner in Toronto tomorrow evening, have come from China,
India, and South Africa and have settled in locales as diverse as Kingston,
Ontario, Vancouver, B.C. and Red Deer, Alberta.
    Said Whitmell: "We have always believed that new Canadians place a high
priority on education but being able to quantify this knowledge makes us even
more pleased to recognize the accomplishments of new immigrant students."

    About the Survey Methodology:
    These are the findings of an RBC/Ipsos Reid survey conducted between    
March 15 and April 30, 2007. The poll was based on a randomly selected sample
of 1,000 new immigrants who are 18 years of age or older and have been in
Canada for 10 years or less. With this sample size, the overall results are
considered +/-3.1 percentage points, 19 time out of 20, of what they would
have been if all new immigrants had been surveyed. The survey was conducted by
telephone and the interviews were held in Mandarin, Cantonese, Hindi, Punjabi,
Korean, English and French. The findings were weighted to reflect the actual
regional distribution and ethnic composition of new Canadians immigrating to
Canada within the past 10 years.

    For full tabular results, please see the Ipsos Reid website at

For further information:

For further information: Media Contact: Judi Levita, Media Relations,
(416) 974-8810; Irene Tang, Dynasty Communications, (905) 907-6911, ext. 220

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