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What is a TFSA?


Curipod lesson about topic "TFSA"

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Updated 3 months ago

1. Word cloud
120 seconds
What is a TFSA?
2. Slide
60 seconds
A TFSA (Tax-Free Savings Account) is a special investment account. It allows you to save money and earn tax-free interest and does NOT need to be a savings account (should be investing account.) You can invest in stocks, ETF's, bonds, GICs and other investments in a TFSA. Many Cnadians miss opportunities to earn money using TFSA's and treat them as Fancy Savings Accounts earning only 2% int. Every Candian can start contributing when they turn 18, and gain additional room every new year on Jan. 1
What is a TFSA?
3. Slide
60 seconds
Tax-Free Savings Account: A special investment account that allows you to save money and earn tax-free interest. Stocks: A type of security that gives the holder a share of ownership in a company. Bonds: A type of debt security that pays a fixed rate of interest over a set period of time. You have a max contribution amount based on your age/time in Canada and if you exceed it are severely penalized You are responsible to keep track of withdrawals and not exceed contribution amount to avoid 1% penalty per month on excess
4. Poll
60 seconds
What is the best way for 12th graders to save for their future?
  • Invest in a TFSA
  • Open a savings account
  • Start a piggy bank
  • Other
5. Slide
60 seconds
The annual maximum contribution limit for a TFSA is $6,000. The total amount you can contribute over your lifetime is $75,500 (so far, if you were born on or before 1991) You can withdraw money from your TFSA at any time, with no tax consequences. The amount you withdraw will not be available to reinvest in your TFSA until Jan. 1 of the next year. If you contribute more to your TFSA than your limit allows, there are hefty penatlies
Fun facts:
6. Slide
60 seconds
TFSA Contribution Limits
7. Slide
60 seconds
Amount earned on interest inside your TFSA does not count towards contribution limit. The limit is only effected by what you put into the TFSA. You can and should have TFSA's that are valued far above the contribution limit because of the interest earned on investments within the account. Don't hold risky stocks in TFSA as it can lose money and reduce the value of TFSA. Don't use TFSA as a savings acocunt.
Investing in TFSA
8. Drawings
210 seconds
Draw / write: What are the pros and cons of investing in a TFSA?
9. Drawings
120 seconds
Draw / write: What types of investments can you make with a TFSA?
10. Open question
150 seconds
What have you heard about TFSAs from family members or friends?
11. Open question
240 seconds
How might your understanding of TFSAs influence your financial decisions in the future?
12. Open question
120 seconds
How much money would someone born in 1996 be able to put in a TFSA (assuming they have never used it before?)
13. Slide
60 seconds
Current Available Room = Total Lifetime Limit - Past Contributions + Past Withdrawals
Calcullating Current Available Room in TFSA
14. Open question
120 seconds
What type of investments would YOU put into a TFSA?

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