One thought on “Why Canadians are Confused About Tax Free Savings Accounts

  1. Hi Andrew,

    My name is Stephanie and I’m from TD.

    I completely agree that most Canadians think TFSAs are great because they can see the advantage of tax-free savings – but the problem is finding the money to contribute after all the bills are paid. There are a couple strategies that I’ve found helpful: 1) Those who make RSP contributions may be entitled to a tax refund, which can be put towards a TFSA contribution instead of spending it on consumer goods (although, some may argue the latter is more fun). 2) Another option is to ‘pay yourself first’ by automatically transferring money on payday from the chequing account to TFSA. That will eliminate the temptation to spend, because the funds are already transferred and invested. Most financial institutions have this type of service at no fee, so it’s worth exploring. Putting aside even $20 a pay cheque can add up to $1040 by the end of the year.

    Great article! Cheers.

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