3 ways to save automatically
1. Join a savings plan at work
Find out if your workplace offers a savings plan. Your workplace will take an amount of money off your pay every month. With some plans, your workplace might contribute to your plan each month. The money may go into a savings accountSavings account A bank account intended for depositing funds. Pays interest and lets you withdraw cash at any time.+ read full definition, or it may be used to buy Canada Savings Bonds or mutual funds.
Learn more about workplace pension and savings plans.
2. Set up an automatic deposit to your savings account
Use online banking to set up your own monthly savings program. Make an automatic transfer from your chequing accountAccount An agreement you make with a financial institution to handle your money. You can set up an account for depositing and withdrawing, earning interest, borrowing, investing, etc.+ read full definition to your savings account on your payday. If you don’t use online banking, ask your bank to take money out of your chequing account each month, and put it into a separate savings account. You may pay a fee for this service, but at least you’re making saving a habit.
3. Save your tax refund
Think of your taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition refund as money you can save each year. Consider putting it into a TFSA, an RRSP or an RESP.
It pays to make saving a habit
Even small savings add up over time. See what happens if you set aside just $10, $20, $50 or $100 a month.
|If you save this much each month||You’ll have this much in a year|
Learn how your savings can grow with compound interest.
3 key points
- Make saving automatic
- Join a plan at work
- Save your tax refund
Use this Compound interest calculator to see how even small amounts of money saved add up over time.