I just moved to Canada. What should I set up first with my money?
By Reynolds Edokpayi, Zenith Advisory Inc., Saskatoon · Updated October 2026 · 6 min read
Why the order matters
Everyone you meet will tell you to "open an RRSP". Your bank will offer you a credit card and a GIC. Neither is where to start. The first job is to make sure that if your income stopped tomorrow, the people who depend on it would be okay. The second is to use the accounts that let your money grow without tax. Investing comes third.
Step 1: the paperwork
- Social Insurance Number (SIN). You need it to work and to open registered accounts.
- A chequing account at any major bank. Newcomer packages often waive fees for the first year.
- A credit card, even with a small limit, to start building a Canadian credit history. Pay it in full every month.
Step 2: protect the people who depend on you
If you have a partner, children, or parents back home who rely on what you send, you need two things before you invest a dollar: life insurance that would replace your income for the years they'd need it, and disability insurance that would pay you if you couldn't work. Permanent residents can apply immediately; many insurers accept work-permit holders too. How much do you need? →
Step 3: open a TFSA
A Tax-Free Savings Account is the one account every Canadian resident aged 18 or over gets the same room in, regardless of income. In 2026 you can put in $7,000, and the room builds every year you're a resident even if you don't use it. Nothing you earn inside it is ever taxed. For most newcomers it's the first investing account, because RRSP room takes time to build.
Step 4: the RRSP, once you've earned here
RRSP room is 18% of last year's Canadian earned income (up to a cap). If you arrived this year, you have none yet. Next year you will. The RRSP gives you a tax deduction now and taxes the money when you take it out in retirement, so it's most valuable when your income is high. RRSP or TFSA first? →
Step 5: the RESP, if you have children
The government adds 20% to what you contribute to a child's Registered Education Savings Plan, up to $500 a year per child. It is the only account where the government gives you money for using it. Every year you wait, that year's grant is gone. How the grant works →
What about a house?
If you plan to buy a first home in Canada, the First Home Savings Account (FHSA) combines an RRSP-style deduction with TFSA-style tax-free withdrawal for a first home purchase. It can sit alongside the TFSA in your plan. We'll tell you whether it fits.
Common mistakes we see
- Leaving a year's salary in a chequing account earning nothing
- Buying an investment someone at the bank suggested with no plan behind it
- Assuming the coverage from work is enough
- Sending money home every month without accounting for it in the plan
Want this worked out for your numbers? We'll walk you through what to set up first, in plain language, from advisors who did it themselves.