In this episode, one woman tells us how her life changed when she moved from Canada to the United States — particularly when it came to her finances. For more insight on how people budget differently in expat situations, check out this video:
When i came to new york city from toronto for graduate school in my early 20s i didn’t expect to settle here permanently but because life doesn’t always go as planned i ended up marrying a new yorker and starting a family in the suburbs of nyc there are many aspects of life in suburban new york that i expected to differ from life in downtown toronto where i grew up
And lived my entire life before the move budgeting however was one aspect i didn’t think would change much when i think about budgeting i think about credit card bills groceries clothes eating at restaurants seeing movies as a parent of young children and a homeowner i now add mortgage child care and healthcare cost and when you live in the suburbs with children so
Much more comes into play cars gas even birthday presents for your kids friends i didn’t really think about how taxes would change my budget a decade ago not just income tax and property tax but sales tax tax rebates tax subsidies the tax structures in the us and canada and even more specifically in new york state in ontario significantly impact how where and how much
Of my money i spend as a canadian living in the us and a city girl from toronto living in the new york suburbs here are five somewhat surprising budgeting differences of kept track of number one sales tax or the hidden cost of stuff in toronto purchasing pretty much anything includes almost fifteen percent in sales tax between the federal goods and services tax gst
And the provincial sales tax pst the numbers fluctuate a bit sometimes but the bottom line is there as a substantial additional cost when buying things in new york there is state sales tax but not only is it quite a bit lower it also only applies to certain purchases and – purchases over a certain amount depending on the type of item this ends up meaning that making
Purchases of anything from clothes to birthday presents to toys can be quite a bit more out-of-pocket in toronto on top of that gst can apply to services as well so a gym membership for example might be a little bit more than you anticipated keeping in mind the hidden extra cost makes shopping in toronto versus new york and experienced in math number two cars and
Trains and parking oh my in toronto i had no car and used public transit and the occasional taxi or uber in suburban new york with a family we have two cars and also pay for monthly parking at the commuter rail station a monthly commuter rail pass and a monthly subway pass living in the suburbs as many americans do often means you regularly use and have to pay for
More than one mode of transportation just getting to work every day involves multiple things i pay for my car and gas my parking my railroad ticket my subway ticket for one day’s commute toronto and many canadian cities are unique in that many people live in homes within the city proper and do so without cars or with one car for a family whereas i drive my kids to
Daycare drive to the train and take the train to work and then do it all in reverse at the end of the day my brother in toronto walks his kids to daycare and then walks or rides his bike to work the experience is a very different one financially number three so you want to own a home the cost of buying a house anywhere in toronto proper is absurd home ownership is a
Lofty and often unattainable goal even in the closer suburbs as a result many people rent indefinitely meanwhile in suburban new york buying a home isn’t quite as financially burdensome upfront in the suburbs it can actually be difficult to find a rental as most people own their houses i remember my dad being shocked that i could afford a three-bedroom two-bathroom
House within 45 minutes of nyc as a starter home because in the areas around toronto that’s unheard of but there are big differences in owning and renting beyond just putting the money down upfront while a monthly mortgage may be comparable to monthly rent when owning a home there is a constant stream of extra cost that renters usually aren’t on the hook for as
A homeowner i have to budget for all sorts of repairs from tiny to major new wiring three months after buying the house that’s on me i have to budget for things like lawn care and private snow removal too if i were still living in toronto we would probably be renting a house or apartment and our budget wouldn’t need to include home maintenance number four take me
Home to visit my entire family still lives in toronto and i am very close with all of them that means i pack up my family of four here in new york at least three or four times a year to head back to toronto to visit sometimes we drive which means gas and tolls and sometimes we fly which means airline tickets for four people plus parking at the airport in new york
We like to go on vacation once a year as a family as many people do and budget for but multiple additional trips to toronto definitely eat into our budget number five the exchange rate and finally the exchange rate this one often works out in my favor now that i live in new york but when i do travel home or buy something from a canadian store i am factoring in
The exchange rate sometimes the benefits are waived by that pesky double sales tax i mentioned earlier but occasionally i can save a little bit of money by buying something when i’m in toronto or hitting up all that family to buy it for me and send it my way
Transcribed from video
5 Ways My Budget Has Changed As A Canadian Living In The U.S By The Financial Diet
