Investing Basics for Beginners in Canada

🌱 What Is Investing?

Investing means putting your money to work to grow over time — instead of just sitting in your bank account. When you invest, you buy things like stocks, bonds, or funds that may increase in value and/or pay you returns (interest, dividends, etc.).

👨‍🏫 Who Is This For?

• Newcomers to Canada with no experience in investing
• Young adults saving their first $1,000 or $5,000
• Anyone feeling nervous or unsure where to begin

📦 What Can You Invest In?

• Stocks: Small ownership in a company (e.g. Apple, TD Bank)
• Bonds: Loans you give to companies or governments
• Mutual Funds: A mix of stocks/bonds managed by professionals
• ETFs (Exchange-Traded Funds): Low-fee baskets of investments you can buy like stocks

🏦 Which Account Should You Use?

• TFSA: Tax-Free Savings Account. Great for all goals — no tax on growth or withdrawals.
• RRSP: Registered Retirement Savings Plan. Reduces taxes now, but withdrawals are taxed later.
• Non-registered account: For extra investing beyond TFSA/RRSP limits

🛠️ How to Start (Step-by-Step)

1. Open a TFSA or RRSP through your bank or an online broker
2. Deposit money — even $100 is a great start
3. Pick an ETF (e.g. Canadian index fund)
4. Set up automatic contributions every month
5. Watch it grow long-term — don’t check it daily!

⚠️ Common Mistakes to Avoid

• Trying to get rich quick
• Selling when the market drops out of fear
• Not using your TFSA or RRSP first