Canadian survey finds Gen Z 'leading the charge' when it comes to investing tax refunds
But a knowledge gap could mean they're leaving money on the table.
Hands holding Canadian cash
It's easy to assume older generations make more sensible financial decisions than their younger counterparts, but a recent survey by TD has revealed Gen Z is outpacing millennials and Gen X when it comes to investing their tax refunds.
The survey shows that 76% of Gen Z Canadians plan to invest their refunds this year (compared to 60% of millennials and 48% of Gen X). However, the survey also revealed that they may not know how to make the most of it.
Of the Gen Z Canadians eager to invest their refunds, only half (51%) have a Tax-Free Savings Account (TFSA) and 30% of those who don't say it's because they don't understand how it works.
More than just a piggy bank, a TFSA is an effective way to save and grow your money — completely tax-free1. Whether you're planning for short-term goals or building long-term financial security, a TFSA provides flexibility.
You can let your TFSA balance grow with competitive interest rates, or you can potentially increase your returns by investing in mutual funds, GICs and term deposits.
Perhaps the best part is that you don't need a big upfront investment to start growing your wealth with a TFSA, making your tax refund an ideal starting point — even if it's modest. In fact, small contributions that add up over time are key to long-term, tax-free growth.
Investing your tax refund is a great first step in growing your money; the next one is gathering the right information so you can make confident financial decisions. Booking an appointment with a TD Personal Banker can help you explore your options, including getting a TFSA up and running and working for you.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.