What should I do with my first paycheque in Canada?

Open a no-fee chequing account, set up direct deposit, understand your pay stub deductions (CPP, EI, income tax), start a TFSA for savings, create a budget, and begin building an emergency fund. Automating savings from your first paycheque builds lifelong habits.

Should I contribute to my employer's RRSP matching program?

Yes, always. Employer RRSP matching is free money — if your employer matches 50% of your contributions up to 5% of salary, that is an immediate 50% return. Contribute at least enough to get the full match.

Do I need to file taxes if I just started working?

Yes. Even if you worked only part of the year, you should file taxes to claim any refund (your employer withheld taxes based on full-year projections), GST/HST credit, and provincial benefits. Filing early in your career establishes your RRSP contribution room.

First Job Financial Checklist Canada: What to Do With Your First Paycheque

First Job Financial Checklist

Week 1: Set Up Banking

Task	Why It Matters
Open no-fee chequing account	Avoid $10-15/month in fees
Set up direct deposit	Get paid faster, avoid cheque holds
Open high-interest savings account	Separate savings from spending
Enable e-Transfer Autodeposit	Security and convenience

Best no-fee banks: EQ Bank, Tangerine, Simplii Financial, Wealthsimple Cash

Week 2: Understand Your Pay Stub

Deduction	What It Is
Income tax	Federal + provincial tax withheld
CPP	Canada Pension Plan (5.95% of earnings)
EI	Employment Insurance (1.66% of earnings)
Employer pension	If offered, contribute to get matching
Benefits	Health, dental, life insurance premiums

Month 1: Start Your TFSA

Action	Details
Open TFSA	At your bank or Wealthsimple
Set up automatic transfer	10-20% of each paycheque
Start with savings account	Until you have $1,000+ emergency fund
Graduate to investing	Move to XEQT/VEQT once emergency fund is set

Month 1: Create a Budget

Category	Suggested % of Net Income
Housing	30% max
Transportation	10-15%
Food	10-15%
Savings/Investing	15-20%
Personal/Entertainment	10-15%
Debt repayment	As needed

Month 2: Build Emergency Fund

Goal	Timeline
$500 starter fund	Month 1-2
$1,000	Month 3-4
1 month expenses	Month 6-9
3 months expenses	Year 1-2

If Your Employer Offers Benefits

Benefit	Action
RRSP matching	Contribute enough to get full match (free money!)
Health benefits	Understand coverage, keep receipts for uninsured portions
Stock purchase plan	Consider if discounted, but don’t over-concentrate
Pension plan	Understand vesting period

Common First Job Money Mistakes

Mistake	Better Approach
Lifestyle inflation	Keep living like a student, save the difference
No emergency fund	Build $1,000 before investing
Ignoring employer match	Always take free money
Credit card debt	Pay full balance monthly
No budget	Track spending for 3 months minimum
Waiting to invest	Start with $50/month in XEQT/VEQT

Tax Tips for New Workers

Tip	Why
File taxes (even if income is low)	Get refunds, build RRSP room, get GST credit
Keep T4 slips	You’ll receive one from each employer
Track work-from-home expenses	If applicable, claim home office deduction
Student loan interest	Tax credit if you have student loans