Your first nursing paycheque can feel huge after years of student budgets. That moment is also your best chance to set up habits that will shape your finances for decades. Here's a simple first-year plan.
Before your first paycheque
- Fill out tax forms carefully. TD1 in Canada, W-4 in the US. Mistakes here can mean owing money at tax time.
- Enroll in your pension or retirement plan right away. In Canada that may be HOOPP or another workplace plan. In the US, at least contribute enough to get your full 403(b) or 401(k) match.
- Choose your benefits. Look at health, dental, disability and life insurance options. Disability coverage is especially important in a physical job.
- Find out your pay schedule and when premiums and overtime are paid. They're often paid a pay period behind.
Your first three months
- Learn your real take-home pay. Compare your first few pay stubs and read our guide to nurse paycheque deductions.
- Build a starter emergency fund of $1,000 to $2,000.
- Set up a base-pay budget. Our shift-work budgeting guide shows how.
- Make a plan for your student loans. US nurses at nonprofit hospitals should look at PSLF. Canadian nurses, check out rural loan forgiveness.
Avoid the new grad money traps
- Lifestyle creep: a new car, a bigger apartment and lots of takeout can quietly use up your raise. Try living on your student-ish budget for one more year and saving the difference.
- Overtime overload: new grads are often asked to pick up shifts. It's okay to say no while you're still learning and adjusting.
- Credit card debt: pay your full balance every month.
- Ignoring retirement: money invested in your twenties has the most time to grow.
By the end of your first year
- Emergency fund of 3 months of essential expenses.
- Retirement contributions running automatically.
- A clear student loan plan.
- A savings goal for something you care about: travel, a home, more school.
Understand your pay from day one
New grads often don't know what their first pay stub should look like. Use the free Nurse Shift Pay Calculator to estimate your gross pay with nights, weekends and overtime, so you can spot payroll mistakes early.
This article is for general education and isn't financial advice.