{"id":2447,"date":"2025-11-12T20:44:08","date_gmt":"2025-11-12T20:44:08","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=2447"},"modified":"2025-11-12T20:44:08","modified_gmt":"2025-11-12T20:44:08","slug":"invest-or-keep-money-in-cash-41-of-young-canadians-opt-for-latter-in-tfsa-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=2447","title":{"rendered":"Invest or keep money in cash? 41% of young Canadians opt for latter in TFSA – National"},"content":{"rendered":"

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As younger Canadians struggle with the heightened cost of living and a difficult job market, a new survey from TD Bank suggests Gen Z and millennials who use a tax-free savings account (TFSA) aren\u2019t investing in that account because they want the money readily available.<\/p>\n

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That comes as young Canadians continue to face an unemployment rate that is more than double the national average as of last month, according to recent Statistics Canada data.<\/p>\n

Forty-one per cent of Gen Z and millennials who currently hold a tax-free savings account are not investing the money inside it, the TD survey found.<\/p>\n

And while that number is higher, they aren\u2019t the only ones.<\/p>\n

The survey also says 65 per cent of all Canadians hold a TFSA, but 39 per cent of them are not investing the money inside.<\/p>\n

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\n\t\t\t\tWhat is a tax-free savings account?\t\t\t<\/h2>\n<\/p><\/div>\n

Introduced during the Great Recession, the tax-free savings account was launched in 2009 and acted as a way to encourage Canadians to invest for retirement and other milestones.<\/p>\n

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Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

A TFSA acts as a tax shelter, allowing Canadians to put a certain amount of money into their account and, if they want, use that to invest in things like stocks, bonds, GICs and mutual funds.<\/p>\n

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All of the money earned through those investments is free from taxes like capital gains as long as the money used to invest came from the TFSA.<\/p>\n

Most Canadians are able to contribute up to $7,000 in 2025 towards their TFSA, according to the Canada Revenue Agency, and that money can be used for investing \u2014 tax-free.<\/p>\n

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\n\t\t\t\tWhat’s stopping young Canadians right now?\t\t\t<\/h2>\n<\/p><\/div>\n

In October, youth unemployment was at just over 14 per cent compared to the same month in 2024.<\/p>\n

Although that\u2019s down from 14.7 per cent in September, it was still more than double the national average.<\/p>\n