TFSA for child

As a parent, you want your child to have every advantage you can give. Along with love and encouragement, you can help secure their tomorrow by planning for their financial needs today.

A TFSA for child is one way to build savings without having to worry about taxes eating into your gains. When you open a tax-free savings account for your youngster, you allow their money to grow year after year without tax charges. In time, those funds can become a source of independence and choice as they move into adulthood.

We know it can feel overwhelming to choose the right path for your family’s future. That’s why we’re here to guide you every step of the way. Speak to our broker at Sure Insurance to find out how setting up a TFSA for child can give your family the peace of mind you deserve.

What is a tax-free savings account (TFSA)?

A Tax-Free Savings Account, or TFSA, is a brilliant option for Canadians who want to make their money work harder without the headache of taxes. 

It’s a unique account where you can put your savings to work, earn extra cash from those investments, and not owe a single penny in taxes on what you make—or even on the money you first put in. The best part? When you’re ready to pull it out, it’s all yours, tax-free.

To get started with a TFSA, you need to be at least 18 or 19, depending on your province, and have a valid Social Insurance Number handy. This isn’t your everyday savings account—it’s built for the long haul, more like a plan to grow your wealth over time.

Here’s why it’s worth thinking about sooner rather than later: the earlier you jump in, the more your money can grow. 

With the help of compound interest and solid investment returns, you could build a comfortable pile of cash by the time you’re ready to tackle big goals—like buying a home, switching jobs, or even taking that once-in-a-lifetime trip to Antarctica. 

And if you’re wondering about a TFSA for a child, you can’t open one for them just yet—but you can start investing in your own TFSA now and earmark some of that growth for their future. It’s a smart way to set them up with a financial boost when they’re grown.

We get it—planning for the future can feel overwhelming, especially when money’s tight or life’s uncertain. That’s where a TFSA steps in to ease the pressure, giving you a tax-free way to build something solid. 

If you’re ready to take control of your finances or just want to talk it through, contact us at Sure Insurance. Our team’s here to guide you, answer your questions, and help turn your goals into reality.

Who can open a TFSA – Minimum age TFSA

If you’re considering a Tax-Free Savings Account (TFSA), you probably want to know who can get started with one. 

The rules are pretty straightforward. To open a TFSA, you need to live in Canada, have a valid Social Insurance Number (SIN), and be at least 18 years old. That’s the basic requirement for residents. 

But what if you don’t live in Canada? If you’re a non-resident with a valid SIN and you’re 18 or older, you can still open a TFSA. 

Just keep in mind that any money you put in while you’re a non-resident will face a 1% tax each month it stays in the account. If this sounds confusing, you can find more details in the section about non-residents of Canada.

Now, what about setting up a TFSA for a child? Here’s the thing—you can’t open or add money to a TFSA until you hit 18. That means no accounts for kids just yet. 

But once you turn 18, you’re free to contribute the full TFSA limit for that year, all in Canadian dollars, of course. 

So, if you’re a parent thinking ahead, you’ll need to wait until your child reaches that age to get them started.

We get it—figuring out TFSA rules can feel overwhelming, especially with things like age limits and residency. That’s where we come in.

Sure Insurance is ready to help you sort it all out. Whether you’re unsure about your eligibility or just want to plan, feel free to contact us. Reach out today to speak with a broker who can guide you through your options and make the process simple.

What are the benefits of TFSA?

Saving money can feel tough, especially when you’re thinking about the long haul for your family. But a TFSA can make a huge difference in building wealth for your child, thanks to its tax perks. 

When you put money into a TFSA, you don’t get a tax deduction right away. However, all the growth—whether it’s from interest, dividends, or capital gains—stays completely tax-free. That’s a smart way to grow savings over time without losing a chunk to taxes.

One thing that makes investing so exciting is compounding. It’s simple: your money earns more money, and then that extra money earns even more. 

Give it enough years, and even small amounts can turn into something big. Setting up a TFSA for your child’s future means their savings get a long runway to grow, and that can change everything.

In Canada, you can put up to $6,500 into a TFSA each year (as of 2023). Now, your child can’t have their own TFSA until they’re 18, but here’s the good news: you can use your TFSA to save for them right from the start. 

Imagine putting in $6,500 every year for your child’s future, beginning when they’re born. 

If that money grows at an average rate of 7% a year, here’s what it could look like down the road:

After 18 years, you’d have around $221,000 by their 18th birthday. 

Let it sit and grow, and it could reach about $271,000 by age 21, $498,000 by age 30, $1,030,000 by age 40, $2,132,000 by age 50, and a massive $4,405,000 by age 60. That’s the magic of starting early—time does the heavy lifting.

Picture this: by the time your child is ready to retire, they could have millions sitting there, all tax-free. 

Any cash they pull out—whether it’s from dividends or gains—won’t cost them a dime in taxes. That kind of freedom is hard to beat, and it’s something you can help make happen.

Kicking things off as soon as possible gives your child a real edge. Maybe they’ll use the money for school, a house, or just to enjoy life later on. 

Whatever they choose, having that stash ready means more options—options you might wish you’d had at their age. A TFSA for your child isn’t just about numbers; it’s about opening doors for them.

We get it—planning for the future can feel overwhelming, and you just want the best for your family. 

That’s where we come in. Ready to give your child a financial boost? Contact us at Sure Insurance, and let’s talk about how a TFSA can secure their tomorrow, step by step.

TFSA for child unused contribution room withdrawal

When you open a Tax-Free Savings Account, the amount you’re allowed to contribute depends on your available contribution room. 

This room grows every year once you turn 18 and live in Canada, even if you haven’t filed a tax return or set up a TFSA before. 

For example, if you opened your first TFSA in 2025 and were already 18 back in 2009, you’d have accumulated $102,000 in total contribution room by now.

Your total room for contributions includes this year’s limit, any unused room carried forward from previous years, plus the full value of whatever you withdrew in the last year. 

Keep in mind that everything you add to your TFSA during the year—including putting back withdrawals—counts against the contribution room you have available.

If you’re thinking about saving early for your children, consider the benefit of a TFSA for child to start building tax-free growth right away. 

We understand that sorting out contribution limits can feel overwhelming, but you don’t have to do it alone. Speak to our broker at Sure Insurance, and let us help you make the most of your TFSA contribution room.

When it comes to securing your child’s financial future, understanding the savings options available in Canada is key. 

While a Tax-Free Savings Account (TFSA) isn’t directly available for children under 18, parents can leverage their own TFSAs to save tax-free for their child’s needs, whether it’s for education, a first car, or other milestones. 

Frequently Asked Questions