Well this was kind of funny. I was talking to a person today about a tax free savings account and at first he had no idea what it was. I started explaining a bit about how it is kind of like an RRSP that worked a little differently as you can earn interest and not be taxed for it.
Immediately, he then responds by saying “Oh, you mean that $5,000 a year thing”. Kind of interesting I thought as it made me wonder how many people actually think that a TFSA is an RRSP. Maybe that commercial didn’t get through to a lot of people in the way that it intended.
Based from my experience though, not many average people are really taking advantage of a TFSA from what I noticed. With responses like the above, the information about it isn’t really penetrating enough I seems.