Canadian finance glossary
Every Canadian personal-finance term, in plain English. Built for newcomers, first-time investors, and anyone who’s ever-so-slightly nodded along when their accountant mentioned “FHSA carry-forward.”
- Tax-Free Savings Account (TFSA)A registered Canadian account where investment growth and withdrawals are tax-free. The CRA gives every resident annual contribution room starting at age 18.
- Registered Retirement Savings Plan (RRSP)A registered Canadian account that lets you defer income tax on contributions until you withdraw, usually in retirement when your marginal rate is lower.
- First Home Savings Account (FHSA)A registered account combining TFSA-style tax-free growth with RRSP-style deductible contributions. For first-time home buyers, limited to $40,000 lifetime.
- Spousal RRSPAn RRSP in your spouse's name that you contribute to. You get the deduction now; they pay tax on withdrawal — useful for income-splitting in retirement.
- Registered Education Savings Plan (RESP)A registered account for saving for a child's post-secondary education. The federal government matches 20% of your contributions up to $500/year/child.
- Canada Education Savings Grant (CESG)A federal matching grant that adds 20% to your RESP contributions, up to $500/year per child, lifetime $7,200.
- Non-Registered AccountAn ordinary investment account with no tax shelter. Interest is taxed at your marginal rate; capital gains are taxed at 50% inclusion.
- Home Buyers' Plan (HBP)A program that lets first-time home buyers withdraw up to $60,000 from their RRSP tax-free, repaid over 15 years.
- Canada Revenue Agency (CRA)The federal agency that administers tax law in Canada. Tracks your contribution room, calculates your tax owing, and issues refunds.
- T4 SlipThe form your employer sends you each February showing your employment income, tax withheld, and CPP/EI premiums for the prior tax year.