- FCAC suggests an emergency fund covering 3 to 6 months of expenses, built up with small automatic transfers.
- A bank package at $17.95 a month costs $215.40 a year, while several online banks charge no monthly fee at all.
- Paying your credit card in full keeps purchases interest-free: federally regulated issuers give at least 21 days.
- Small habits compound. FCAC notes a $3 daily coffee costs more than $1,000 a year.
Checked October 2026
Find out where your money goes
Every saving plan starts with a clear picture. FCAC suggests tracking everything you spend for 1 or 2 months, from groceries to a daily coffee, along with every bill, then sorting each item into needs and wants. Needs are essentials like housing, food and medication; wants are the rest, though the line depends on your life.
A simple target helps. Our budget calculator uses the 50/30/20 rule of thumb: about 50% of take-home pay for needs, 30% for wants and 20% for savings. It flags which group is over and by how much. FCAC’s free Budget Planner is another option that compares your spending with Canadians like you.
Then check in once a month. Compare what you planned with what you actually spent, and adjust the plan if the same category keeps running over.
Pay yourself first, automatically
The most reliable savings habit is one you don’t have to remember. Set up an automatic transfer to savings on payday, so the money moves before you can spend it. FCAC’s target for an emergency fund is 3 to 6 months of regular expenses, and it stresses that starting small is fine:
| Saved each week | Saved in a year |
|---|---|
| $5 | $260 |
| $10 | $520 |
| $15 | $780 |
| $20 | $1,040 |
Source: FCAC, Setting up an emergency fund. Before interest.
Speed it up with money you weren’t counting on. When you finish paying off a loan, keep making the same payment, into savings. Tax refunds, raises, bonuses, gifts and money from selling things you don’t use can go straight in too.
Stop paying your bank
Monthly account fees are a quiet, permanent leak. Here’s what some popular big-bank packages cost compared with no-fee accounts, from our own account data:
| Account | Monthly fee | Cost over a year | Fee waived with |
|---|---|---|---|
 TD Unlimited Chequing Account | $17.95 | $215.40 | $4,000minimum balance |
 BMO Performance Chequing Account | $17.95 | $215.40 | $4,000minimum balance |
 RBC Signature No Limit Banking Account | $17.00 | $204 | No waiver listed |
 Scotiabank Preferred Package Chequing Account | $16.95 | $203.40 | $4,000minimum balance |
 CIBC Smart Chequing Account | $16.95 | $203.40 | $3,000 to $4,000minimum balance |
 Tangerine No-Fee Daily Chequing Account | $0 | $0 | Not needed |
 Simplii Financial No Fee Chequing Account | $0 | $0 | Not needed |
 EQ Bank Personal Account | $0 | $0 | Not needed |
Fees from our account data, checked October 2026. Confirm with the bank before you switch.
At $215.40 a year, ten years of a package fee is $2,154. You have two ways out: keep the minimum balance that waives the fee, if that money would sit there anyway, or switch to a no-fee chequing account. Our bank fee audit shows what your current account and card cost you a year and what you’d save.
- Use your own bank’s ATMs. FCAC explains that machines your bank doesn’t own can add a network access fee and a convenience fee on top of your bank’s charge.
- Turn on low-balance alerts. Banks must alert you when a balance drops below $100 or an amount you set, which helps you avoid overdraft and NSF charges.
- Switching? Download your new void cheque and move payroll and bills before closing the old account.
Make your savings earn something
FCAC suggests keeping your emergency fund in a savings account that’s separate from your everyday account, has no or low transaction fees, lets you withdraw without penalty, and pays interest. Compare rates on savings accounts.
- Hold savings in a TFSA and the interest is tax-free. The 2026 TFSA dollar limit is $7,000. See TFSA savings accounts.
- Money you won’t need for a year or more can earn a fixed rate in a GIC.
- Watch it grow with the compound interest calculator.
Stop paying interest you don’t need to
Credit card interest undoes savings faster than anything else. The fix is simple to say: pay the full statement balance by the due date. Federally regulated issuers must give you at least 21 days interest-free on purchases when you do. Cash advances never get that grace period, so avoid using a card for cash.
Already carrying a balance? See what it really costs in the credit card interest calculator, then plan a payoff date with the debt payoff calculator. Moving the balance to a cheaper option, such as a line of credit or a low interest credit card, can cut the cost while you pay it down.
Trim everyday bills
FCAC’s list of easy cuts is refreshingly practical:
- Bring lunch and coffee from home. A $3 coffee every day costs more than $1,000 a year.
- Take public transit where you can instead of driving.
- Drop one non-essential item from each grocery list, and use coupons, cashback offers and specials.
- Review subscriptions. Our budget calculator flags subscriptions and dining out as often the easiest wants to trim.
If you pay your card in full every month, a cash back credit card returns a little on spending you were doing anyway, and a card with no foreign transaction fee saves the conversion charge when you travel or shop online in other currencies.
Make it stick
- Name a goalShort-term goals such as paying off a card, and long-term ones such as a home, make saving feel less abstract.
- Automate itSchedule the transfer for payday so saving happens before spending.
- Review monthlyCompare your budget with what you spent, and adjust the plan rather than abandoning it.
- Update for life changesA raise, a new child or a bill increase should change the budget too.
Frequently Asked Questions
How can I save money in Canada?
Track your spending for a month or two, set an automatic transfer to savings on payday, cut bank fees and card interest, keep savings in an interest-paying account or TFSA, and trim a few everyday costs.
How can I save money fast?
Start with costs you can stop this week: monthly bank fees, unused subscriptions and card interest. Then put any windfall, such as a tax refund or money from selling something, straight into savings.
What’s the simplest way to start saving money?
An automatic transfer on payday. FCAC notes that even $5 a week adds up to $260 in a year, and you can raise it as you go.
How much should I have in an emergency fund?
FCAC suggests 3 to 6 months of regular expenses, or of income. Build it gradually in a separate savings account you can access quickly.
What is the 50/30/20 budget rule?
A rule of thumb that splits take-home pay into about 50% for needs, 30% for wants and 20% for savings. Our budget calculator shows where your spending sits against it.
How do I create a family budget?
List your household’s income, savings and expenses from recent pay stubs, bills and statements, sort expenses into needs and wants, set limits, and compare actual spending each month. FCAC’s Budget Planner and our budget calculator both help.
How can I save on bills?
Look at recurring charges first: bank account fees, subscriptions and any card interest. Then compare your phone, internet and insurance plans when they renew.
How can I save money on groceries?
FCAC suggests dropping one non-essential item from each list, using coupons, cashback offers and specials, and bringing lunch from home. A cash back card helps if you pay it in full.
Where should I keep my savings?
FCAC suggests a savings account separate from your everyday account, with no or low fees, penalty-free withdrawals and interest. Holding it in a TFSA makes the interest tax-free.
Are bank account fees worth paying?
Only if the package gives you something you use. A $17.95 monthly fee is $215.40 a year, and several online banks charge nothing. Our bank fee audit shows what you’d save by switching.
Try this next
Sources, checked October 2026
- FCAC: Making a budget canada.ca
- FCAC: Setting up an emergency fund canada.ca
- FCAC: ATM fees canada.ca
- FCAC: How credit cards work canada.ca
- FCAC: Lines of credit: know your rights canada.ca
- Canada Revenue Agency: Calculate your TFSA contribution room canada.ca
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.