Savings and investments

A Registered Retirement Savings Plan (RRSP) is an investment that allows you to plan for retirement, but can also be used to make a down payment on your first home or return to school. In addition to keeping your money tax-free, your RRSP contributions offer you the advantage of reducing your annual taxable income. 

A Tax-Free Savings Account (TFSA) is a medium- or long-term investment that allows you to plan projects or accumulate an emergency fund to deal with the unexpected, all tax-free. You can also withdraw money from a TFSA with no tax impact.

A Guaranteed Investment Certificate (GIC) is an investment where the initial principal is guaranteed at the end of the predetermined term (30 days to 10 years) and the final return at maturity is known in advance. Depending on your objectives, the GIC may be either redeemable or non-redeemable. 

As for the non-guaranteed investment, it is an investment whose initial capital can fluctuate up or down. The final return at maturity isn't known in advance. The non-guaranteed investment is determined according to your investor profile and is managed for you by portfolio managers. 

The good news is that there's no amount that's too small to start saving. The best thing to do is to get started now. For example, by opting for systematic savings, you can start with as little as $25 per month through direct debits from your bank account. 

Also, when budgeting, think about savings. A little extra put aside each month can make a big difference a few years down the road. Plus, you can also cut back on some expenses and replace them with savings.