![]() Or it can be a cashable GIC, where you can cash out early in case of emergency, but in return pay a penalty or earn less interest. The money can be "locked in", where it is invested and you are unable to access it until the funds come to term. A TFSA can take the form of a high interest savings account, or it can be money invested into a GIC or mutual funds. It's a type of registered savings, like an RRSP or an RESP. TFSA stands for Tax-Free Savings Account. I called my mom up and told her that I wanted to start an emergency fund, but I had to admit to her that I didn't really know what a TFSA was, or how it worked. These thoughts kept rolling around inside my head the stats from the Financial Post article, the begrudging admission that my own family fell perilously close to that "$200 away from not making our monthly bills" category, and my mom's nagging advice that I should have a nest egg stashed away somewhere. Maybe it DOES apply to me." If my husband lost his job tomorrow, where would we be? Whew." A moment later the third thought hit me, "Wait. My first thought was, "Wow that's some depressing statistics." My almost immediate second thought was, "But it doesn't apply to me. The next day as I was scrolling through my online feed I ran into an article from the Financial Post that cited a new IPOS Reid survey suggesting that Canadians are living paycheque to paycheque, and that nearly half of us are only $200 away from not making our monthly bills. While I agreed with her on that last point, and could see why we should have a rainy day fund, my eyes glazed over and my brain froze when she started babbling about TFSAs and GICs. She started rattling on about Tax-Free Savings Accounts and cashable GICs and how important it is to set money aside for all those unexpected "emergency" expenses. She started giving me heck when I confessed that my family still doesn't have an emergency savings fund. I was chatting with my mom the other day when the conversation turned to money. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |