The best student credit cards in Canada for 2023 + MORE Sep 13th

The less tax you pay, the more money you keep for yourself. How can you apply this to investing? By using registered investment accounts like the tax-free savings account (TFSA) and the registered retirement savings plan (RRSP). The TFSA is often the first investment account a new or young investor opens because, unlike the RRSP, your contribution room isn’t based on your income. So, you can invest in a TFSA even if you earned little or nothing in a particular year.

TFSAs can hold a wide range of investments—they aren’t just a place to park your cash (although you can do that, too). Before we get into eligible TFSA investments, let’s review what makes these accounts so useful.

The TFSA’s superpower: tax-free investment growth

Why open a TFSA? Any money contributed to a TFSA and any income earned in a TFSA—including interest, dividends and capital gains—are tax-free forever! Here’s an example: If you invest $10,000 in an exchange-traded fund (ETF) held within your TFSA and the value of your investment grows to $22,000 over the next 10 years (assuming an annual growth rate of about 8%), the $12,000 gain is tax-free…

A registered education savings plan (RESP) is a long-term investment strategy that allows parents, grandparents, family members and friends to help pay for a child’s future university or college education or job skills training.

Tuition fees are often top of mind, but the funds you save inside an RESP can be used for much more—they can pay for any education-related cost, from a new tablet to a transit pass.

How does an RESP work?

An RESP is a type of registered savings account that offers tax-deferred growth, partial contribution matching from the government, and additional grants to help families save for a child’s education.

When you tally up tuition, books, technology, room and board, and other expenses, the cost of a post-secondary education can be pricey. According to Statistics Canada, full-time undergraduate tuition fees for the 2022–23 academic year averaged $6,834, and professional degree programs ran as high as $23,963 (for a degree in dentistry)—and that’s just for one year…

Credit Cards

The best student credit cards in Canada for 2023
Searching for the perfect credit card? In under 60 seconds, CardFinder narrows down your top matches without impacting your credit score, no SIN required.

Find my perfect card*

You will be leaving MoneySense. Just close the tab to return.

Why trust us

MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

googletag.cmd.push(function() {
var refresh_key = ‘refresh’;
var refresh_value = true.toString();

// Creating all ad sizes
var mapping = googletag.sizeMapping()…

Ask MoneySense
I have a 78-year-old mother, and most of her wealth is tied up at the bank. What changes could we make to avoid probate on her future estate?

–Laura

What is probate?

Thanks for your question, Laura. Probate is on the minds of many Canadian families, especially as the value of their assets increase. The cost of probate fees on growing assets needs to be considered in every estate plan.

Let’s review what probate is and the fees Canadians face, before we look at some strategies that could work for your mother, Laura.

The probate process is the legal procedure after death to validate the will and administer the estate. The executor named in the will—or an appointed administrator, if there is no will—is responsible for initiating the application process. The court reviews the application to ensure the will meets the necessary requirements, and it will grant the probate if everything is in order. Then, the executor collects the deceased person’s assets, pays off any debts, and distributes the remaining assets according to the will’s instructions—or the applicable laws of intestacy if there is no will…