FAQ
Questions students ask
This is general information, not personalized financial advice.
Last reviewed Oct. 28, 2026.
15 questions shown
Saving and registered accounts
What's the difference between saving and investing?
Saving means setting money aside in something stable, like a savings account, so it's there when you need it soon. Investing means putting money into things like stocks, bonds, or funds that can grow over time but can also lose value. A common approach is to save for goals within a few years and invest for goals that are further away.
What's a TFSA, and can students open one?
A Tax-Free Savings Account (TFSA) is a registered account where your savings and investments grow tax-free, and withdrawals are generally tax-free too. You need to be a Canadian resident, at least 18, with a Social Insurance Number. Your contribution room starts building the year you turn 18, the annual limit for 2026 is $7,000, and unused room carries forward. What you hold inside a TFSA matters: a TFSA can hold simple savings or investments whose value can go up or down.
What's an FHSA, and is it too early to open one?
A First Home Savings Account (FHSA) is a registered account for saving toward your first home. You need to be at least 18 and a Canadian resident, and first-time buyer rules apply. You can contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions can be tax-deductible, and qualifying withdrawals for a first home are tax-free. If your income is low right now, the deduction may not be worth much yet, so timing matters.
What's an RRSP, and does it make sense while I'm a student?
A Registered Retirement Savings Plan (RRSP) is a registered account for retirement savings. Contributions are tax-deductible, and you pay tax when you withdraw. Your room is generally 18% of your earned income from the previous year, up to a yearly maximum, and unused room carries forward. Because the deduction is worth more at higher incomes, many students with low income wait, but starting to earn room by filing taxes still helps.
What's an RESP? (for parents and guardians)
A Registered Education Savings Plan (RESP) lets families save for a child's post-secondary education. The federal Canada Education Savings Grant adds 20% of the first $2,500 contributed each year, up to $500 a year and $7,200 per child over a lifetime, and extra grants may apply to lower-income families. Growth is tax-sheltered until it's withdrawn for school. Rules, limits, and deadlines apply.
How big should my emergency fund be?
An emergency fund covers surprises like a lost job, a laptop repair, or an unexpected trip home. A common rule of thumb is three to six months of essential expenses, but a student starting from zero can begin with one month, or even one rent payment, and build from there. Keep it somewhere you can reach it quickly and that you won't be tempted to spend.
Student loans
Do student loans charge interest?
Federal Canada Student Loans have been permanently interest-free since April 1, 2023. Provincial and territorial loans work differently and vary by province, so check each loan on your National Student Loans Service Centre account and in your loan documents.
When do I have to start repaying my student loans?
For federal Canada Student Loans, you generally get a six-month grace period after you finish or leave full-time studies before payments start. Provincial loans follow their own rules. Your loan documents show your exact dates and payment amounts, and if payments feel out of reach, repayment assistance programs exist.
Should I pay off student loans early or save and invest instead?
It depends on each loan's interest rate, your other goals, and whether you have an emergency fund. A loan that charges no interest generally creates less urgency than debt that charges a high rate, such as credit card balances. Many people split their extra cash between the two.
Credit
How do I build a credit score as a student?
In Canada, credit scores generally range from 300 to 900, and higher is better. Your score is built from your history of borrowing and repaying, so the basics are paying every bill on time, keeping credit card balances low compared with your limit, and not applying for lots of new credit at once. A short history takes time to build, so start small and stay consistent. You can request your credit report from the credit bureaus to check it for errors.
Should I get a credit card as a student?
A credit card can help build credit if you use it carefully: charge only what you can pay off, pay the full balance by the due date, and never miss a payment. Carrying a balance means paying interest, which is usually much higher than other kinds of borrowing. If you're not sure you can manage it, you can build credit more slowly with a small limit or a secured card.
Taxes
Do I need to file a tax return as a student?
It's usually worth filing even with little or no income. Filing records your tuition amounts, builds RRSP room, and is how the CRA determines your eligibility for benefits like the GST/HST credit. Your school provides a T2202 slip showing the tuition you paid.
What is the tuition tax credit, and how does it work?
Tuition fees qualify for a federal tax credit, and most provinces offer one too. If you don't have enough income tax to use it, you can carry the unused amount forward to future years, and you may be able to transfer up to $5,000 of the current year's amount to a parent, grandparent, or spouse. You must claim it on your own return first. Rules vary by province, so check the CRA guidance.
Budgeting and investing
How do I budget on a part-time or irregular income?
Build your budget around your lowest typical month, cover essentials first (rent, food, transit, phone), then set a small slice aside whenever you earn more. Keeping savings in a separate account makes them easier to leave alone, and a quick check of your spending once a week helps you catch problems early.
What are GICs, ETFs, and mutual funds, in plain English?
A GIC (Guaranteed Investment Certificate) is a loan to a financial institution for a fixed term at a set rate, so the return is known in advance; check whether your deposit is covered by deposit insurance. An ETF (exchange-traded fund) is a basket of investments that trades on an exchange, usually at a low cost. A mutual fund is a pooled investment run by a professional manager, with fees that vary. The value of ETFs and mutual funds can go up or down.