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Many Canadians, particularly younger generations, are navigating financial challenges like the rising cost of living, making it difficult for many to save enough to achieve their goals. A recent TD Bank survey revealed that while only 58% of all Canadians regularly invest, generation Z leads the way, with 68% investing at least once a year. However, financial pressures are evident, with nearly two-thirds of respondents citing the cost of living as a major barrier to meeting their goals.
Generation Z appears proactive and financially savvy, leveraging their tech skills and learning from millennial struggles to improve their financial literacy and savings habits. Despite facing a tougher housing market, they are turning to accessible tools like robo-advisors and investment platforms. Yet, over half of gen Z respondents still prioritize basic savings accounts over registered plans like TFSAs or RRSPs, potentially limiting their long-term wealth-building opportunities.
Experts recommend that younger Canadians consider tax-efficient accounts like TFSAs, which allow flexible withdrawals while protecting investment growth from taxes. While focusing on short-term savings is practical, the habit of saving regularly is key. TD’s Pat Giles emphasized that starting small and staying consistent in saving and investing can set a strong foundation, even before longer-term financial goals are fully defined.
Read the full article on: FINANCIAL POST
