Saving, Investing and Growing Money
Understand the difference between saving and investing before risking money.
Saving is usually for money that must remain stable or may be needed soon. Investing involves uncertainty in exchange for possible long-term growth.
Time and risk
Investments may rise or fall.
Money needed soon should not normally depend on a risky investment increasing at the right time.
No investment return is guaranteed.
Diversification and fees
Diversification spreads money across investments but cannot eliminate loss.
Fees reduce returns.
Past performance does not guarantee future results.
Avoid guaranteed high-return or risk-free claims.
Investing under 18
A Canadian resident generally must be at least 18 with a valid SIN to open a TFSA.
In provinces where the contract age is 19, the person may need to wait until 19 to open it, while contribution room from age 18 may carry forward.
Do not misrepresent your age or use someone else's identity.
Try this
- 1Ask: When will I need the money?
- 2Ask: Could I accept a loss?
- 3Ask: Do I understand the investment and its fees?
- 4Confirm the provider is regulated.
- 5Make sure you have short-term savings first.
3 questions
Questions completed: 0 of 3
Official sources
Found something inaccurate or out of date? Report an error on this lesson.