Chequing vs Savings

• Chequing account — for everyday spending. Debit card, e-transfers, bill payments.
• Savings account — earns interest. Keep your savings here, not in chequing.

Best free options in Canada

What to look for

• No monthly fees
• Free e-Transfers (Interac)
• CDIC insured (up to $100,000)
• High interest on savings (compare rates — even 0.5% difference matters over time)

Things to avoid

• Monthly fees for no reason — the big banks (TD, RBC, BMO) charge $4–16/month unless you maintain a minimum balance
• NSF (non-sufficient funds) fees — $45+ if you spend more than you have
• Overdraft interest — can be 19–22%

When to file

• Deadline is April 30 every year for the previous tax year
• If you owe money and miss the deadline, there's a 5% penalty + 1% per month
• If you're getting a refund, there's no penalty for filing late (but why wait?)

What you need

• T4 slip — from every employer you worked for. They must send it by Feb 28.
• SIN number
• Last year's tax return (if applicable)

How to file for free

Common deductions for teens

• Tuition tax credit — if you're in school, your T2202 form from your school = tuition credit
• Moving expenses — if you moved for work or school
• Union dues — deductible if you're in a union

Getting your refund

• Set up direct deposit with CRA at canada.ca/my-cra-account
• Usually arrives within 2 weeks of filing electronically

How credit scores work in Canada

• Scores range from 300–900. Above 660 is good. Above 760 is excellent.
• Bureaus: Equifax and TransUnion. Both track you.
• Check your score free with Borrowell (Equifax) or Credit Karma (TransUnion).

What affects your score

• Payment history — 35%. Never miss a payment.
• Credit utilization — 30%. Keep usage below 30% of your limit.
• Credit history length — 15%. Older = better. Don't close old cards.
• Credit mix — 10%. Different types of credit helps.
• New inquiries — 10%. Don't apply for many cards at once.

Best starter cards in Canada

• Scotiabank Scene+ Visa — no fee, earns Scene+ points
• KOHO Prepaid Mastercard — not a credit card but helps build credit with their credit building feature
• Tangerine Money-Back — no fee, 2% cashback on select categories
• Student credit cards — most banks offer no-fee student versions

Golden rules

• Never carry a balance — pay it in full every month
• Set up autopay for the minimum at least so you never miss
• Don't spend more on credit than you have in cash

The real cost of moving out

Before you sign a lease

• First and last month's rent required upfront in most provinces
• Read the lease — check for rules on guests, pets, subletting
• Know your rights — landlords can't enter without 24hrs notice in most provinces
• Get tenant insurance — about $20–30/month, covers your stuff

Monthly budget breakdown

• Rent — should be max 30% of gross income (ideally less)
• Utilities — hydro, gas, water: $80–150/month depending on province
• Internet — $50–80/month
• Groceries — budget $300–400/month for one person
• Tenant insurance — $20–30/month

Tenant rights in Canada

• Landlord must give proper notice before entering (24hrs in most provinces)
• Rent increases are regulated — check your province's rules
• You have the right to a safe, habitable space
• Landlord can't keep your deposit for normal wear and tear

TFSA — Tax-Free Savings Account

• Available to Canadians 18+ (19+ in some provinces)
• 2024 contribution limit: $7,000
• Unused room carries forward — if you've never contributed, you may have $95,000+ in room
• Withdrawals add room back the following year
• Best for: emergency fund, saving for a car, house down payment

RRSP — Registered Retirement Savings Plan

• Contributions are tax-deductible — reduces your taxable income now
• Limit: 18% of previous year's earned income, max $31,560 (2024)
• You pay tax when you withdraw — ideally in retirement when your rate is lower
• Best for: people in higher tax brackets saving for retirement

Which one should you open first?

How to open one

• Any major bank offers both — visit a branch or apply online
• Wealthsimple offers free TFSA and RRSP accounts with no fees
• EQ Bank offers a high-interest TFSA savings account