My Money, My Choices - Level 3, Activity 9 & 10
From the blog posts, and articles that you still see regularly around the merits of TSFA's versus RRSP - it's no wonder people are still confused about what they are for, and if they should have one.
Level 3 activity 9 and 10 are to open a TSFA and automate contributions to it. It's the easiest (only?) way in Canada to save money (up to $5,000/year) and not pay taxes on the gains earned on the money. For a lot of people who are lower income, it makes sense to save for retirement this way; Jordan and however need to use RRSPs for retirement to capitalize on deferring the taxes payable until we're in lower tax brackets in retirement.
We use my TSFA to save for eventually a baby. We currently have $3,300ish and the goal is $10,000 to help offset maternity/parental leave no income. We save $100 every month to the fund, to grow it slowly but surely. I see this account as I see our retirement accounts - it cannot be touched unless it's for the very specific reasons we've laid out (I'm so much more flexible with our Emergency/Curveball accounts which is perhaps why we've never achieved a particularly high goal for the Efund).
What do you use your TSFA for?