When Priya got her first paycheque from Loblaws at 16, she did what most teens do: bought a new phone case, grabbed bubble tea with friends, and a few days later wondered where the rest went. Her older brother Dev had a different system. He immediately moved 20% to savings before he could spend it. "Pay yourself first," he called it, which sounded like something only a finance bro would say.
Two years later, Dev had $3,200 saved. Priya had a drawer full of phone cases and $87 in her chequing account.
Moral of this story: Don't be Priya. (Sorry, Priya.)
In this guide, you'll learn:
- Why Canadian teens have a massive advantage (and how to use it)
- Three realistic banking strategies that actually work for minors
- Which accounts you can actually open
- Real numbers from real Canadian teens who did this
No fluff. No "just make a budget" advice. Let's get into it.
Why Starting to Save at 15 Changes Everything
Here's the thing nobody tells you in high school: starting to save at 15 instead of 25 is worth literally hundreds of thousands of dollars by the time you retire. Not because you save more money. But because of compound interest, which is basically money that makes more money over time.
Real example:
- Start saving $100/month at age 15 → You'll have ~$250,000 by 65
- Start saving $100/month at age 25 → You'll have ~$80,000 by 65
- Same monthly amount. Different start date. $170,000 difference.
Marcus, who's 17 and works at Canadian Tire, put it this way: "I thought saving was something you do when you're old and boring. Then someone showed me the math and I realized 15-year-old me is basically setting up 65-year-old me to be rich. Future Marcus is gonna be so grateful."
Current Marcus is also very smart.
What they don't tell you: The first $10,000 you save in your teens does more work than the next $50,000 you save in your 30s. Time is literally money when compound interest is involved.
Want to see your own numbers? Use our [compound interest calculator] to plug in what you can actually save and watch your future self get richer.
The Brutal Truth About Where Your Money Actually Goes
Before you can save, you need to know where your money disappears to. Spoiler: it's not the $6 bubble tea once a week. It's the other $6 bubble teas five times a week that you forgot about.
Track for two weeks. Just two weeks.
Zara did this and discovered she was spending $340/month on "random stuff" - drinks from the school vending machine when she was tired, trips to the bakery with friends after school, trinkets from the mall. She wasn't buying anything big. It just added up.
How to actually track without it being annoying:
- Use your bank app (most show categorized spending)
- Screenshot your debit card notifications for a week
- Or go old school: notes app, write it down immediately
After two weeks, you'll see patterns. Maybe it's takeout. Maybe it's vaping. Maybe it's those 99-cent mobile game purchases that somehow add up to $50/month. No judgment - just data.
The 20% Rule (That Actually Works)
Forget the 50/30/20 budget you've probably seen online. That's for adults with rent and car payments. Here's the teen version:
As soon as money hits your account, move 20% to savings. Spend the rest however you want.
That's it. No complicated spreadsheets. No guilt about buying things you want. Just make 20% disappear before you can spend it.
How this plays out in real life:
Jamal works at McDonald's 12 hours a week during school. After taxes, his biweekly paycheque is about $270.
- 20% to savings = $54
- He spends the other $216 = guilt-free
After one year, he has $1,400 saved without feeling broke. His friend who saved "whatever's left over" has $200.
The Reality Check: Your Banking Options Actually Suck
Here's what nobody tells you: banking options for teenagers in Canada are limited. Most high-interest online banks don't take minors. The big banks pay you basically nothing. It's frustrating.
But you have three realistic strategies that work:
Strategy 1: Two Accounts at One Big Bank (Most Common)
Strategy 2: Neo Financial (Best Interest Rate)
Strategy 3: Parent Holds Your Savings (Workaround)
Let's break down each one.
Strategy 1: Two Accounts at One Big Bank
Best for: Teens who want simple, parents are already at a big bank, you want physical branches
The setup:
- Open youth chequing account for spending
- Open youth savings account for... saving
- Both at the same bank (TD, RBC, Scotia, CIBC)
- Set up automatic transfer: 20% from chequing to savings every payday
Chequing Account Options:
| Bank | Monthly Fee | Transactions | Age Requirements | Until When? |
|---|---|---|---|---|
| TD Youth | $0 | Unlimited | Parent required under 18 | Age 23 |
| RBC Leo's | $0 | Unlimited | Parent required under 13 | Converts to student account at 13 |
| CIBC Smart Start | $0 | Unlimited | Parent required 14-15, solo at 16+ | Age 25 |
| Scotia Getting There | $0 | Unlimited | Parent required | Student status |
Savings Account Options (Same Banks):
| Bank | Interest Rate | The Reality |
|---|---|---|
| TD Youth Savings | 0.05% | Terrible but it's about the habit, not the rate |
| RBC Youth Savings | 0.05% | Same garbage rate |
| CIBC eAdvantage Savings | 0.05% | You see the pattern |
| Scotia Momentum PLUS Savings | 0.05% | Still terrible |
How Amir does this:
- TD Youth chequing for his paycheques and daily spending
- TD Youth savings that he never touches
- Automatic $54 transfer every payday (20% of his $270 paycheque)
- After one year: $1,400 saved despite earning basically zero interest
The pros:
- Simple. One bank, two accounts.
- Easy to set up automatic transfers within the same bank
- Physical branches if you need help
- Parents already bank there so it's convenient
The cons:
- Interest rates are insulting (0.05% is basically zero)
- You're leaving money on the table compared to better options
- But honestly? For building the habit of saving, this works fine
Strategy 2: Neo Financial (Best Interest for Teens)
Best for: Teens comfortable with online-only banking, want actual interest, okay with parent involvement
The setup:
- Neo Cash account: 2.5% interest (actual real interest!)
- JA Money card: Prepaid Mastercard with cashback at partner stores
- Completely online, no physical branches
- Requires parent email for verification
Age requirement: 13+ (14+ in Quebec)
Neo's Actual Numbers:
| Account Type | Interest Rate | Fees | Cashback |
|---|---|---|---|
| Neo Cash (savings) | 2.5% | $0 | N/A |
| JA Money card (spending) | Same 2.5% on card balance | $0 | Up to 5% at partner stores |
How this changes the game:
Remember Amir saving $1,400 at TD earning 0.05%? If he'd used Neo at 2.5%:
- Same $54 every two weeks
- After one year: $1,418 (vs $1,400 at TD)
- That's $18 more for doing literally nothing
Doesn't sound like much? Over 3 years before you turn 18: $130 extra. Still not life-changing, but it's free money TD was keeping from you.
The pros:
- Actually earns meaningful interest (50x better than big banks)
- Completely digital (everything in app)
- Can open multiple savings "buckets" for different goals
- Cashback on spending at partner stores
The cons:
- Online only (no physical branches)
- Not available in Quebec (unless you're 14+)
- Requires parent email verification
- Less established than big banks (founded 2019)
Who this works for: Elena, 16, uses Neo as her primary account. She gets paid via e-transfer from her part-time job at a local shop, immediately moves 20% to her Neo Cash savings, spends with her JA Money card. Her $2,000 in savings earns $50/year instead of $1 at a big bank. Same effort, way better return.
Strategy 3: Parent Holds Your Savings (The Workaround)
Best for: When you can't open good accounts yourself but your parents have high-interest savings
The reality: Your parents probably have access to accounts paying 2.5-4% interest (EQ Bank, Tangerine, Wealthsimple). You don't. So use their account as your savings vault.
The setup:
- Open one youth chequing account at any big bank (for your paycheques)
- Calculate your 20% savings every payday
- E-transfer that amount to your parent
- They hold it in their high-interest savings account
- Track it in a simple spreadsheet
Sample tracking spreadsheet:
| Date | Deposited | Withdrawn | Balance | Interest Earned |
|---|---|---|---|---|
| Jan 15 | $54 | - | $54 | $0.11 |
| Jan 29 | $54 | - | $108 | $0.22 |
| Feb 12 | $54 | - | $162 | $0.34 |
The pros:
- Earns real interest (2.5-4% vs 0.05%)
- Extra barrier to spending (have to ask parents for it back)
- Parents can see you're serious about saving
- Simple to set up
The cons:
- Requires trust and good relationship with parents
- They could technically use it (make it clear it's yours)
- Extra step of transferring money
- Need to track it manually
Who this works for: Kayla's mom has an EQ Bank account earning 3% interest. Every payday, Kayla e-transfers $40 (20% of her paycheque) to her mom with the note "SAVINGS - DO NOT SPEND." Her mom drops it in EQ Bank. Kayla tracks it in Google Sheets. After 2 years, she has $2,100 saved plus $63 in interest. If she'd kept it at TD Youth Savings? She'd have earned $2.10 in interest total.
Pro tip: Some parents match your savings. Kayla's mom adds $20 for every $100 Kayla saves. Check if your parents will do this - it's like instant 20% returns.
How to Actually Open Your First Account
What you need:
- Government ID (birth certificate, passport, or driver's license)
- Proof of address (utility bill works, parent's bill if you live at home)
- Social Insurance Number (technically optional but they'll ask)
- Parent or guardian (required under 16-18 depending on bank)
For big banks (TD, RBC, etc):
- Book appointment online
- Show up with parent and IDs
- They sign one form
- Takes 20-30 minutes
- Deposit first $25-100
For Neo Financial:
- Download app
- Enter your email + parent's email
- Upload photo of your ID
- Wait for verification (usually same day)
- Done - no branch visit needed
Story from the trenches: When Liam opened his TD account at 16, the bank person tried selling his mom a credit card for 15 minutes. You can literally say "we're just here for the youth account" and they'll move on. Don't feel pressured.
The "Pay Yourself First" System
Here's why "save whatever's left over" fails: there's never anything left over.
The system:
Day 1 (payday): Money hits your account
Day 2: Move 20% to savings (automatic or manual)
Rest of the time: Spend guilt-free
How to automate it:
Strategy 1 (two accounts at same bank): Set up recurring transfer in your bank app
- Go to Transfers
- Select "Recurring"
- From: Chequing, To: Savings
- Amount: $54 (or your 20%)
- Frequency: Every payday
- Takes 3 minutes to set up once
Strategy 2 (Neo): Transfer manually or set reminders
- Neo doesn't auto-transfer from external accounts yet
- Set phone reminder for payday
- Move 20% when you get paid
- Takes 30 seconds each time
Strategy 3 (parent holds it): E-transfer on payday
- Set up parent as payee in your bank
- E-transfer 20% same day you get paid
- Add to your tracking spreadsheet
Worth knowing: When money is harder to access, you spend it less. That's why having separate savings works - it creates friction between you and your money.
Common Mistakes That Cost Real Money
Mistake 1: Leaving savings in chequing
Nadia kept $2,000 in her TD chequing "just in case." At 0.05% interest: $1 earned in a year. If her mom had held it in EQ Bank at 3%: $60. She basically gave TD a free $59.
The fix: Move savings out of your spending account. Even if it's just to a separate savings account at the same bank, the psychological barrier helps.
Mistake 2: Not starting because "it's too little"
"I only make $200 every two weeks, what's the point?" Ethan thought this at 15. Then he did the math: $40/paycheque = $1,040/year. By 18 he had $3,200 saved. His friend who waited until he had a "real job"? $0 saved at 18.
The fix: Start with anything. $10/week beats $0/week. Always.
Mistake 3: Forgetting youth accounts have expiry dates
Jordan's CIBC Advantage for Youth converted to a fee-based account at 19. Suddenly $12.95/month in fees. Over 6 months before he noticed: $77.70 gone.
The fix: Set a calendar reminder 3 months before your 19th (or 23rd, or 25th) birthday to check your account terms and switch if needed.
Real Talk: When You Can't Save 20%
Not everyone can save 20%. Maybe you're helping pay bills. Maybe you have medical expenses. Maybe school is expensive.
That's completely fine.
Kayla saves 5% because she helps with groceries. That's $15 every paycheque. Her friend Bryce saves 30% because he lives rent-free. Neither is wrong.
The point: save something, consistently.
Even $20/month = $240/year = more than most people your age.
What makes the difference: Increasing when you can. Got a raise? Save the difference before lifestyle inflation kicks in. Summer job with more hours? Bump your percentage. Graduated and not buying school supplies? Bank that money.
Marcus started at 10% at age 15. Bumped to 20% at 17 when he got more hours. Now at 25% at 18 because he got a raise and didn't increase spending. His savings went from "nice to have" to "I can buy a car in cash."
Tools That Help
Savings calculator: See how your money grows → [compound interest calculator]
Tracking:
- Bank app (shows spending patterns)
- Google Sheets (if parent holds your savings)
- Notes app (simple running total)
What they don't tell you: Fancy budgeting apps are overkill for teens. Simple tracking works fine.
The Bottom Line
Saving as a teenager in Canada isn't about perfect accounts or maximum interest. It's about:
- Building the habit of paying yourself first
- Choosing a strategy that actually works for your situation
- Starting now even with limited options
Dev (Priya's brother) didn't have perfect accounts at 16. He had basic TD accounts earning garbage interest. But he saved $3,200 in two years by automatically moving 20% every payday.
Two years later: bought a used car in cash. No loan. No interest payments.
Priya? Still taking the bus.
Pick your strategy today:
Strategy 1: Two accounts at one big bank (simple, works for most)
Strategy 2: Neo Financial (best interest, digital-first)
Strategy 3: Parent holds it (workaround for better rates)
Then:
- Set up automatic transfers (or manual system)
- Track your progress
- Use our [compound interest calculator] to see your future self get richer
The day you turn 18/19, you'll have savings AND a solid habit. That's when everything gets better: TFSAs, real investment accounts, actual control.
Next up: [How to Set Up Your Banking for Success at 18 in Canada] - Everything changes when you're legal. Better accounts, TFSAs, investing. Here's your roadmap →