As Canadians wrestle with trying to get a better handle on their finances to mark the New Year, they try to answer questions like: should I save or pay down debt? Or, do I invest in an RSP or TFSA?
There’s no right answer to these but increasingly those who are choosing the saving options are relying more and more on the TFSA.
The annual survey of Canadians and their views on TFSAs conducted for BMO Bank of Montreal also turned up some interesting findings about us. We prairie folk, it turns out, are making larger contributions to the TFSA than those in other parts of the country. Our average is just over $6,000 as we fill unused space. In Atlantic Canada, they are putting in just over half of what we are.
The total with a TFSA is now up to two-thirds of the population.
Half of us see the TFSA as a retirement savings vehicle and another third see it as an emergency account – a place to put money for a rainy day.