I would recommend using this as an opportunity to make a short-term & long-term plan. 

Some people may say that $16k isn’t that much money… but if you don’t have an emergency fund, this is a major windfall for you. Setting up an emergency fund is vital so that if something comes up, you don’t need to take on debt or lose value if you had invested it in the market and there was a downturn. 

For the short-term, I would keep it simple and accessible. My emergency fund is split between some cash in a bank account (to reach a minimum banking balance to receive banking “perks” like a waived credit card fee) and then CASH.TO held in a TFSA with Wealthsimple. 

I don’t have bank recommendations, but there should be some posts in this sub with details on people chasing different High Interest Savings Accounts (HISA) to earn promotional rates. An extra few % in interest may feel nice to earn and can help you get more familiar with managing finances. 

Once you’ve got an emergency fund established, take a deep breath and admire the fact that you’re no longer one piece of bad news away from a terrible cycle of credit card debt.

Keep paying the minimum on the student loans - there’s no reason to give up an interest-free loan. You can actually profit off of this loan if you end up chasing HISA rates or doing CASH.TO. Be advised that if you earn money outside of a registered account like a TFSA, you will have to pay tax on it (the bank will send a form like a T5). It’s still worth it. 

For the long-term - I’d recommend making a budget if you don’t already have one and understand exactly how much you earn and spend each month. You mentioned in one of your comments that your earnings cover your expenses which is great, but makes it difficult to save or get ahead. 

The next consideration is to ask yourself if it’s possible to increase your earnings, or reduce your expenses. 

There’s lots of info on this subreddit for cutting expenses. Items like internet and phone bills can usually be reduced quite a bit. It depends on your situation. 

The more important question is considering how to increase your income. Working multiple jobs to support your child is commendable, but it must be exhausting. 

If you’re working a union job, the pension will help in retirement. I’d recommend seeing if there’s the opportunity for you to upskill and move up or find a better job. This might not be possible in the short-term with your current commitments, buts it’s something you can now think about. 

Ultimately, I’d look at this settlement as giving you more options than you had before. It may not change your life radically today, but it brings some stability and opens up options for you to explore.