Saving money is hard enough but if you don’t know all your options, it is just that much harder.
A survey conducted for TD Bank asked Canadians expecting a tax refund this year what they plan to do with the money they receive from the federal government. It turns out that the youngest among us are the most focused on saving it.
About three-quarters of the Gen Z cohort who expect a return say they will invest it. That compares quite strongly with 60-percent of Millennials and just under half the Gen Xers who responded.
But there’s the rub… while three-quarters of Gen Z respondents plan to invest it, roughly half don’t have a TFSA, an effective tool for the average citizen looking to set aside money for the future.
A large percentage of those expecting a refund don’t understand how the TFSA works, something the bank calls it unfortunate because it is a gateway to long-term, tax-free financial growth.
Among those who do have registered accounts, the TFSA is the preferred option for half while a third will put their refund in an RRSP.
