From the outset, the labor shortage is hitting Canadian businesses “hard.” As a result, small businesses are forced to open their doors to a new class of employees, Generation Z.  Indeed, many of our “teens” will join the ranks of the corporate workforce this summer. Consequently, how should they go about accumulating wealth and growing their capital?

At first glance, the question seems straightforward. However, it is more complex than one can anticipate. First, we are parents, and guardians of their fortune; we want to establish goals and a personalized vision, which will depend on their current and future quality of life.

Of course, upon receipt of their first paycheck, some may insist on an immediate evacuation of cash from their checking account: the beneficiaries being Amazon, Xbox, PlayStation, eBay, etc….… To remedy this situation, it is helpful for a parent to temporarily turn into a stingy, grumpy person and refuse to let themself get enthralled by the spirit of the Christmas celebration!

Truce of jokes, after some checks within our income tax law, you would be surprised to learn and find that our options are significantly limited. First, the legislator imposes a minimum age on some programs that could help us. Then, account openings at some financial institutions can be “tricky,” to say the least. Indeed, here is a short list of strategies to consider before and after the age of 18: 

Non-registered investment account

Before 18: You can drive a vehicle, enlist in the Canadian Armed Forces (die for your country), and have significant responsibilities within your current employment, but it is impossible to open a non-registered account and seek growth strategies that will enable a higher rate of return than GIC’s. Find the error?

I understand that the legislator’s objective at the time was to avoid income splitting among the wealthiest individuals & families in our society. However, the minimum age of 18 is a penalizing measure for young, middle-class “teens” who hope and demand better returns than the Bank of Canada’s prime rate.     


According to Olivier Brabant, Tax Director at HNA LLP: “In the past, it was important to establish a minimum age for the TFSA. If the TFSA had been available to those under 18, it would have favored wealthier families. We would have witnessed a proliferation of “tax-free family trusts.”

The age limit of 18 years, explained in the context of the law at the time, allows us to understand the purpose of the law. Indeed, today, the economic situation has changed. On the other hand, we must adapt to the newest financial situation to enhance and optimize wealth creation. 

According to Alexis Paquin, a student at UQO and author of the column “CELIAPP & les jeunes”: “the housing crisis is likely to last for some time, and we must continue to look for solutions to help young people.” Considering that the average price of homes in Canada is $535,000, I think they will need a little “nudge,” right?

I invite the legislator to review the age limit of 18 years and, consequently, allow “teens” who work to choose a hybrid formula, allowing them to contribute to the TFSA or the new FHSA, as of 2023


There is no age limit for the RRSP. So, a minor can contribute up to 18% of their earned income from last year. We must not forget that there is a basic credit with an enhancement, so when we apply for the 15% credit, your teen must have paid more than $ 2,071 in tax to be able to receive a refund when contributing to his RRSP. 

Notwithstanding the above passage, a minor can contribute to an RRSP without deducting the amount on their tax return. He can defer his RRSP deductions until his marginal tax rate is higher. This measure will allow him to pocket a more interesting reimbursement in the future.


The new measures are exciting: you can make contributions of up to $50,000 per child. There is no limit per year to contributing to the RESP. Unfortunately, the only taxpayers who can contribute are policyholders and the government through RESP grants and education bonds. According to a prescribed formula, allowing an individual or plan’s beneficiary(ies) to contribute to their RESP would be logical.