# Money Guide for New Grads in Canada: Your First Job Plan > Your first paycheque in Canada: what comes off it, how to build credit, whether to start with a TFSA, RRSP or FHSA, and how to keep spending in check. Source: https://trykosh.com/for/new-grads Kosh for new grads # Your first job: a money plan for new grads in Canada The first full-time paycheque is the best time to set habits, because nothing is committed yet. Kosh reads your statements and helps you build a budget, a credit history and your first savings without overthinking it. ## What gets in the way ### A smaller paycheque than the offer Your offer letter says one number. After income tax, CPP and EI, the deposit is noticeably lower, and rent was budgeted on the bigger figure. ### Lifestyle creep from day one Student habits meet a salary. Delivery, rideshares and subscriptions grow quietly until the card bill is a surprise. ### No credit history yet Landlords, phone carriers and lenders check your credit. Without a history, you start at a disadvantage. ### Too many acronyms TFSA, RRSP, FHSA. Everyone says to open one; nobody says which first or how much. ## What Kosh does about it ### Shows your real take-home Kosh works out your income tax, CPP and EI for your province and shows what actually lands each month. ### Builds a first budget from real spending Upload a couple of months of statements and Kosh shows where the money goes, then suggests a plan you can live with. ### Keeps card use healthy Due-date reminders and a check on how much of your limit you use, the habits that build a credit score. ### Picks your first account Based on your income and goals, Kosh explains whether the TFSA, FHSA or RRSP should come first, and what it saves you. ### Starts an emergency fund A monthly target that gets you to three months of expenses, tracked from your statements. ## Free tools for new grads [Free tool**Take-home pay calculator**Turn a salary or hourly wage into what actually lands in your account each payday, after federal and provincial tax, CPP and EI.](/tools/take-home-pay-calculator)[Free tool**Income tax calculator**Work out your 2026 federal and provincial income tax, CPP and EI, and what you keep, in any province or territory. Add self-employment income, capital gains and RRSP contributions to see how each one changes the bill.](/tools/income-tax-calculator)[Free tool**TFSA contribution room calculator**Add up every TFSA limit you've been eligible for since 2009, subtract what you've put in and add back past withdrawals to see the room you have today.](/tools/tfsa-contribution-room-calculator)[Free tool**Emergency fund calculator**Add up your essential monthly costs, choose how many months to cover, and see your target, the gap and how long it'll take to close it.](/tools/emergency-fund-calculator) ## A CFO for new grads. Upload a statement and Kosh maps your money, estimates your federal and provincial tax and tells you the one thing to fix first. Free to start. [Start free](/signup?via=for-new-grads) ## What comes off your first paycheque? On a $60,000 salary in Ontario in 2026, income tax is about $8,320 and CPP plus EI about $4,340, so take-home is roughly **$47,340** a year, or about $3,940 a month. Your marginal rate is about 29.6%. Budget on the take-home number, not the offer. See [how to budget in Canada](/learn/how-to-budget-in-canada). ## TFSA, FHSA or RRSP first? - **FHSA** if you might buy a first home in the next 15 years. Contributions of up to $8,000 a year are deductible, and qualifying withdrawals for a home are tax-free. Room starts only once you open one, so opening early helps even with a small deposit. - **TFSA** for your emergency fund and flexible savings. Room builds from the year you turn 18 while resident, so someone who turned 18 in 2022 and has never contributed has $33,500 of room in 2026. - **RRSP** often makes more sense once your income rises. At $60,000 in Ontario a $3,000 contribution saves about $750 in tax; you can contribute now and carry the deduction forward to a higher-income year. ## Build credit without debt Canadian credit scores run from 300 to 900 and are kept by Equifax and TransUnion. A single no-fee card, paid in full every month, is the simplest start. Paying in full keeps the interest-free grace period on purchases, which is at least 21 days with federally regulated issuers. See [credit scores in Canada](/learn/credit-score-canada). [Free tool**Take-home pay calculator**Turn a salary or hourly wage into what actually lands in your account each payday, after federal and provincial tax, CPP and EI.](/tools/take-home-pay-calculator)[Free tool**TFSA contribution room calculator**Add up every TFSA limit you've been eligible for since 2009, subtract what you've put in and add back past withdrawals to see the room you have today.](/tools/tfsa-contribution-room-calculator)[Free tool**Emergency fund calculator**Add up your essential monthly costs, choose how many months to cover, and see your target, the gap and how long it'll take to close it.](/tools/emergency-fund-calculator) ## Frequently asked questions How much of my paycheque should I save as a new grad? There is no single right number. A common starting point is a 50/30/20 split of take-home pay between needs, wants and savings, adjusted for your rent. The first priority is an emergency fund of three to six months of expenses, the range the FCAC suggests. Should a new grad open a TFSA or RRSP first? If you may buy a home, opening an FHSA early starts your room. Otherwise a TFSA is usually the first account for an emergency fund and flexible savings. The RRSP tends to pay off more once you are in a higher tax bracket, and you can save the deduction for a later year. How do I build a credit score in Canada? Use credit lightly and pay on time. A single no-fee credit card used for small regular purchases and paid in full every month builds history without costing interest. Checking your own score does not lower it. Why is my paycheque lower than my salary divided by 26? Income tax, CPP, CPP2 for higher earners and EI are deducted at source, plus any benefits or pension contributions. Your pay stub lists each deduction. Is Kosh free for new grads? The Starter plan is free: one statement a month, a money summary, your top recommendation and 10 questions a month. Pro costs CA$19 a month or CA$179 a year after a free 7-day trial, and you can cancel anytime. ## Sources - [FCAC: Credit report and score basics](https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/credit-report-score-basics.html) - [FCAC: How credit cards work](https://www.canada.ca/en/financial-consumer-agency/services/credit-cards/credit-card-work.html) - [CRA: Calculate your TFSA contribution room](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributing/calculate-room.html) - [FCAC: Setting up an emergency fund](https://www.canada.ca/en/financial-consumer-agency/services/savings-investments/setting-up-emergency-funds.html) General information for planning, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk.