UEN Recommended Notification Settings
If you're not sure where to start with your students' notification settings or your own, here are UEN's recommendations for Notification settings.
You may want to ask that your students have certain notification set as ASAP in case you need to get a hold of them, for example, it might be a good idea that you ask your students to have Announcement set to ASAP.
If you ever feel like you're getting too many notifications from Canvas, you can change that at any time.