Smart Summer Saving - TFSA Tips for Teens
Starting Strong: Summer Jobs and Smart Saving Habits
For many teens, a summer job means more than just spending money—it’s their first step toward financial independence. One of the best tools to start that journey is the Tax-Free Savings Account (TFSA). While teens must be 18 (19 in British Columbia) or older to open one, now is the time to start building the foundation for a healthy financial future.
What is a TFSA?
A TFSA is a flexible, registered savings account that allows investment income—including interest, dividends, and capital gains—to grow tax-free. Unlike RRSPs, withdrawals from a TFSA are not taxed and do not affect eligibility for government benefits.
Why Start Early?
- Tax-Free Growth: Even small contributions can grow meaningfully over time thanks to compound interest.
- Flexible Withdrawals: Money can be withdrawn at any time, for any purpose, without tax consequences.
- Goal-Based Saving: TFSAs can support short-term goals (e.g., a laptop or car) or long-term ones like education or a first home.
How Parents Can Help
- Encourage teens to save a portion of each summer paycheque.
- Guide them through the process of opening a TFSA with a trusted provider.
- Discuss how to invest inside a TFSA—GICs, segregated funds, or high-interest savings accounts.
Let’s Talk About the Next Generation
At Macnaughton & Ward Financial Services, we believe financial literacy starts early. If you’d like help setting up a TFSA for your child—or guiding them in their first financial steps—we’re here to assist.
Contact us today to schedule a conversation with your Account Manager or start the process online.
