Young people and money is a conversation that usually starts with what to open. Anita Bruinsma says the more important conversation is what happens after. Most people open their TFSA, make the contribution, and stop. The money sits earning 0.2 percent. Step two is getting it invested and a lot of people never take step two.

What does it feel like to find out you have had a savings account for five years and lost ground to inflation because you thought putting money in was the whole thing? The order matters too: for most people in their early twenties, first home savings account first, TFSA second, RRSP third. But the tax deduction from the first home savings account does not have to be used the year you contribute. If you are going to be earning more in four years, hold it and use it then.

The TFSA limit for 2026 is $7,000. Going over it costs one percent per month. Multiple TFSAs at different institutions are allowed and each one can serve a different goal. The vacation fund and the retirement fund do not have to live in the same account.

Topics: young people and money Canada, TFSA investing tips, first home savings account order, RRSP versus TFSA, compounding interest

GUEST: Anita Bruinsma | http://clarityonyourmoney.com

Originally aired on2026-04-07