The Reality: Youth Finances & Job Market in Canada

Canada’s economy has been challenging for young adults and recent graduates. Rising rent, food combined with fewer entry-level job opportunities, have made it harder than ever for Canadians aged 18- 35 to save for travel or new experiences.

In 2025, youth unemployment has increased, and many graduates find themselves underemployed or uncertain about their next step in a time of ongoing financial pressure. So, what can you do when opportunities feel limited at home?

One smart option is to work and travel abroad. While the economic situation in Canada might not be the strongest right now, the world is wide open and a Working Holiday is an incredible way to grow personally and professionally, even during tough times. Of course, it’s fair to ask the big question: What about the budget?

Let’s be transparent, yes, doing a Working Holiday abroad requires money. Flights, insurance, and visa costs can add up. But with Stepabroad’s flexible Pay-Later options, the financial barrier no longer has to stand in your way. A Working Holiday abroad allows you to:

➡️ Gain valuable international work experience

➡️ Earn income while exploring a new country

➡️ Take a break from Canada’s tight job market while investing in yourself

And now, with Stepabroad’s Pay-Later plans, money doesn’t have to hold you back from taking that next big step. You can secure your spot today and pay on your schedule.

Why Pay-Later Options Are a Game-Changer for Canadian Youth

1. Lock in your dream while keeping your budget intact

When you commit to the idea of doing a working holiday abroad, you’re not just buying a trip, like a holiday somewhere,  you’re investing in an experience. An experience that you will remember for life.

With BNPL (like Klarna or Affirm) you don’t have to pay everything upfront. Klarna in Canada lets you “Pay in 4” interest-free instalments (every 2 weeks) when you pay on time. Affirm similarly offers flexible plans, showing up at checkout in Canada, with no hidden fees, transparent terms. 

This means you can apply now, hold your spot for the 2026 program, and spread the cost out, giving your bank account breathing room.

2. Smaller payments in a longer period of time = less financial stress

Breaking the cost into manageable instalments means you won’t feel the pinch of a big lump-sum payment. For example: instead of one large payment, you might pay a deposit now (say CAD $499) and then spread the rest across the coming months. It’s simpler, predictable, and makes planning your budget easier for your working holiday planning! 

3. Secure your spot now, pay later later

If you know you want to travel in Spring/Summer 2026, but want flexibility, we’ve got you. You can lock in your working holiday program today with just the deposit, and defer the remaining balance until the new year or later, no need to pay the full cost until you’re ready. That way you avoid price increases and still keep your finances flexible.

4. Enjoy transparency and control

BNPL services emphasise clear, upfront terms. For instance, Affirm states “what you see is what you pay” and that you’ll never face hidden fees or surprises. Klarna emphasises automated payment schedules and no fees if you pay on time. For you, that means you know what you’re committing to, when payments will be taken, and you can plan ahead.

How the Pay-Later (BNPL) Works for Working Holiday Makers

1. Choose Your Destination

Pick the Working Holiday program you’re most excited about, from Australia or New Zealand to Japan or a European Working Holiday

2. Book a Free Call With Our Team

This is a big decision and we’re here to help! Book a free consultation with our advisors so we can answer all your questions and guide you to the best program for your goals.

3. Select Your Payment Option at Checkout

When you’re ready to book, you’ll see flexible payment options:

Use BNPL (Buy Now, Pay Later):
Choose Klarna or Affirm at checkout and select a monthly or bi-weekly payment plan that fits your budget.

Klarna Canada: “Pay in 4” interest-free instalments (every 2 weeks when you pay on time) or Affirm Canada: Monthly payment options with transparent rates (typically 0–31.99 % APR depending on eligibility).

Or Pay a Deposit Now:
Put down your deposit (starting from CAD $299) to lock in your spot. You’ll have until a predefined balance date to pay the remaining balance directly to Stepabroad, with no third-party BNPL companies involved.

4. Set It and Let’s Start Planning Your Working Holiday Together!

Once your payment plan is approved, your instalments will be charged automatically — or you can make manual payments if you prefer. Your Working Holiday program is confirmed, your payments run smoothly in the background, and when your start date arrives, all that’s left to do is pack your bags and take off!

Buy Now, Pay Later FAQs for Canadian Working Holiday Travellers

Can I use Buy Now, Pay Later to pay for my Working Holiday program?

Absolutely! You can use Buy Now, Pay Later (BNPL) options to pay for your Stepabroad Working Holiday program. At checkout, simply select Klarna or Affirm as your payment method. Both allow you to spread out your payments, either in bi-weekly instalments (Pay in 4) or through monthly plans that fit your budget.

That means you can secure your Working Holiday spot today without paying the full amount upfront. Your program is confirmed right away, and your payments continue automatically in the background while you prepare for your adventure abroad.

If you’d rather skip third-party financing, you can also choose Stepabroad’s deposit-only option, pay a small deposit now (from CAD $299) and the rest later in 2026, interest-free.

Will using BNPL hurt my credit?

• Klarna: If you pay on time, there are no fees or penalties. Each purchase goes through an automated approval check, and a rejection won’t negatively impact your credit score.
• Affirm: The eligibility check is instant and typically doesn’t affect your credit score. However, as with any payment plan, missing payments may have consequences,  so it’s important to stay on top of your schedule.
• Deposit Option: If you choose to pay only the program deposit, you’ll be paying directly to Stepabroad, and no credit check is required!

Are there extra fees or interest?

• Klarna: “Pay in 4” is interest-free when you pay on time.
• Affirm: Offers some 0% APR options, but depending on your plan, interest may apply (rates range from 0–31.99% APR in Canada).
• Deposit Option: If you choose to pay your deposit directly with us, there’s 0% interest and no extra fees ever!

Do I have to complete all payments before I travel?

Yes, all payments must be completed before your Working Holiday departure. This ensures you don’t have to worry about paying for your program once you’ve started your new life abroad. We want you to arrive in your destination country completely set up for success, with everything taken care of before you go.

With Stepabroad’s flexible payment plans, you can spread the cost over time and finish your payments well before you fly, giving you peace of mind (and a little extra spending money for your first adventure abroad!).

I’m travelling in 2026, can I pay just a deposit now?

Absolutely. You can secure your spot with a deposit now, and defer the remaining payment until a set date in 2026. No need to wait until you’ve saved the full balance.

Can I use BNPL to cover flights, insurance, or other travel costs?

Yes, in many cases you can use Buy Now, Pay Later (BNPL) options to pay for flights, travel insurance, or other trip-related costs. However, it’s important to note that Stepabroad has no control over how BNPL services are applied to purchases outside of our platform. Each airline, insurance provider, or travel company decides whether they accept BNPL at checkout.

That said, you can still use BNPL with Stepabroad for your program fee, and then manage your other travel expenses separately, keeping your budgeting flexible and stress-free.

Does this mean the total cost will be higher?

Not necessarily. The total program cost remains the same. You’re just spreading payments, not paying extra for flexibility!

Is BNPL just like a credit card?

BNPL has similarities, but one difference is transparency and fixed schedule, no hidden fees if you pay on time. But it still requires you to budget responsibly!

How does BNPL compare to Stepabroad’s deposit-only payment option?

Both options let you secure your Working Holiday spot without paying everything upfront, but they work a little differently.

Buy Now, Pay Later (BNPL) options are managed by third-party providers. They require a quick approval process, and your payments are automated according to a fixed schedule (bi-weekly or monthly). These systems may also include a credit check depending on the provider.

With Stepabroad’s deposit-only payment option, there’s no middle company involved and no automatic withdrawals. You simply pay your deposit (starting from CAD $299) directly to Stepabroad to lock in your spot, and then we work with you to create a custom payment plan that fits your situation.

There’s no credit check, no interest, and no extra fees, just a flexible, personal arrangement designed to make your Working Holiday affordable and stress-free.

How to maximize the benefit of Buy Now, Pay Later

Buy Now, Pay Later (BNPL) options like Klarna and Affirm can make it easier for young Canadians to book their Working Holiday abroad without paying everything upfront. But like any financial tool, they work best when you use them wisely.

Here’s how to make the most of BNPL while keeping your finances (and credit score) happy:

• Use automatic payments, set them up so you don’t forget, which means no risk! Choose a payment frequency that aligns with your income (e.g., every 2 weeks if you’re paid bi-weekly). Sync your payment reminders with your payday so you always know what’s coming out and when.
• Treat the payment plan like a fixed cost in your budget, don’t borrow against it or stretch it out longer. This mindset helps you stay disciplined and prevents overspending before your Working Holiday even begins.
• If you expect to save more later in the year, go for our deposit-now, pay-later-balance option. Pay your deposit (starting from CAD $299) to secure your spot, and complete your payment once your savings grow, no interest, no third-party apps. You guarantee your spot at today’s price, while giving yourself time to build funds closer to your 2026 travel start.
• BNPL is a tool, not a crutch. Track your overall expenses and avoid stacking multiple payment plans at once. The goal is to make travel accessible, not to create future debt stress.
• Pay Ahead When You Can. Got a bonus, tax refund, or extra paycheck? Use it to pay off your balance early. Paying ahead feels amazing , you’ll reduce your outstanding balance and head into your Working Holiday with even more peace of mind.