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 |