Money Milestones by Age
| Age |
Milestone |
Action |
| 12-13 |
Understand money basics |
Open youth bank account, learn saving vs spending |
| 14-15 |
First income (odd jobs, allowance) |
Budget income, start saving habit |
| 16-17 |
Part-time job |
File first tax return, understand deductions, save for goals |
| 18 |
Legal adult (financial) |
Open TFSA, get first credit card (student/secured), start investing |
| 18-19 |
Post-secondary plans |
Understand student loans, RESP, apply for scholarships |
Budgeting for Teens
Simple Budget (Part-Time Job, $800/month)
| Category |
Amount |
% |
| Savings (pay yourself first) |
$160 |
20% |
| Needs (phone, transit, school) |
$240 |
30% |
| Wants (entertainment, food, clothes) |
$320 |
40% |
| Giving / emergency fund |
$80 |
10% |
| Total |
$800 |
100% |
| Tool |
Cost |
Best Feature |
| KOHO app |
Free |
Auto-categorizes spending |
| Google Sheets (template) |
Free |
Full customization |
| Wealthsimple Cash |
Free |
Savings goals and roundups |
| Mint |
Free |
Tracks multiple accounts |
Banking for Teens
Best Youth Bank Accounts
| Bank |
Account |
Monthly Fee |
Age Range |
Features |
| RBC |
Leo’s Young Savers |
$0 |
Under 19 |
No fees, debit card |
| TD |
Youth Account |
$0 |
12-18 |
Unlimited transactions |
| BMO |
Youth Savings |
$0 |
Under 19 |
Interest on savings |
| Scotiabank |
Getting There Savings |
$0 |
Under 19 |
Goal tracking |
| CIBC |
Advantage for Youth |
$0 |
Under 19 |
No monthly fees |
At 18, consider switching to a no-fee online bank like EQ Bank, Tangerine, or Wealthsimple Cash for higher interest.
Understanding Compound Interest
| Start Age |
Monthly Deposit |
By Age 65 (7% return) |
| 15 |
$100 |
$527,000 |
| 18 |
$100 |
$426,000 |
| 25 |
$100 |
$264,000 |
| 30 |
$100 |
$183,000 |
| 35 |
$100 |
$124,000 |
Starting 3 years earlier (at 15 vs 18) = $101,000 more.
The Power of Starting Early
| Scenario |
Investment |
Duration |
Total Invested |
Value at 65 |
| Start at 18, invest $200/mo until 28 |
$200 × 120 months |
10 years of investing |
$24,000 |
~$420,000 |
| Start at 28, invest $200/mo until 65 |
$200 × 444 months |
37 years of investing |
$88,800 |
~$490,000 |
Investing $24,000 early nearly matches investing $88,800 later, thanks to time.
First Credit Card (Age 18)
How to Build Credit
| Step |
Action |
| 1 |
Apply for a student or secured credit card |
| 2 |
Make small purchases only (gas, phone bill) |
| 3 |
Pay the full balance every month |
| 4 |
Never use more than 30% of your limit |
| 5 |
Set up autopay to never miss a payment |
| 6 |
Check credit score free (Borrowell, Credit Karma) |
Best First Credit Cards
| Card |
Type |
Annual Fee |
Cashback |
| BMO CashBack Mastercard (student) |
Student |
$0 |
3% grocery, 1% everything |
| Tangerine Mastercard |
No-fee |
$0 |
2% on 2-3 categories |
| Home Trust Secured Visa |
Secured |
$0 |
1% cashback |
| KOHO + Credit Building |
Prepaid + credit |
$0-$10/mo |
Up to 1-5% |
Understanding Credit Scores
| Score Range |
Rating |
Impact |
| 760+ |
Excellent |
Best rates on everything |
| 725-759 |
Very good |
Approved for most products |
| 660-724 |
Good |
Standard rates |
| 560-659 |
Fair |
Higher interest rates |
| Below 560 |
Poor |
Difficulty getting approved |
| Factor |
Weight |
How to Improve |
| Payment history |
35% |
Always pay on time |
| Credit utilization |
30% |
Keep under 30% of limit |
| Credit history length |
15% |
Keep old accounts open |
| Credit mix |
10% |
Different types helps |
| New credit inquiries |
10% |
Don’t apply too often |
Investing at 18
TFSA Basics
| Feature |
Details |
| Eligibility |
Age 18+ with SIN |
| Contribution room at 18 |
$7,000 (2025) |
| Tax |
Growth and withdrawals are tax-free |
| Best first investment |
All-in-one ETF (XEQT or XGRO) |
| Minimum to start |
As low as $1 (Wealthsimple) |
Where to Invest
| Platform |
Minimum |
Best For |
| Wealthsimple |
$0 |
Easiest for beginners |
| Questrade |
$0 (ETF buys free) |
Low-cost ETF investing |
| TD GoalAssist |
$25/week |
Automated investing |
Key Concepts Every Teen Should Know
| Concept |
One-Line Explanation |
| Compound interest |
Earning returns on your returns |
| Inflation |
Prices rising ~2-3%/year — your money loses value if it doesn’t grow |
| Credit score |
A number (300-900) showing how well you handle debt |
| TFSA |
Tax-free savings/investing account at 18 |
| Budget |
A plan for where your money goes |
| Emergency fund |
3 months of expenses saved for unexpected costs |
| Net vs gross income |
Gross is before tax; net is what you actually receive |
| Needs vs wants |
Must-haves vs nice-to-haves |