Gen Z is leading the way on money habits—here’s how you can catch up

But there’s one bright spot: Gen Z is actually ahead of the pack. According to the survey, 68% of Canadians under 27 are investing consistently—making them the most proactive generation when it comes to money habits.

“I’m thrilled to see Gen Z taking the lead here,” says Pat Giles, Vice President of Saving and Investing Journey at TD. “They’ve had the benefit of growing up in an information-rich environment. Accessing information is second nature, and they can readily see first-hand examples on social media of how peers invest and how they budget.”

So what can young Canadians learn from the research—and what steps should you take if you want to build confidence and get your financial life on track?

1. Don’t miss out on tax-free growth

While Gen Z is off to a solid start, the research shows a missed opportunity: many aren’t taking advantage of Canada’s most powerful savings vehicles.

“Only six in 10 eligible Canadian adults actually have a tax-free savings account (TFSA),” Giles says. “And when you zoom in on Gen Z, that goes down to 50%. That means many are saving, yes, but they may not be saving in the best plan type they can—particularly to get the tax-free growth that is such an advantage in a TFSA.”

For context, a TFSA allows you to withdraw all your investment growth—whether from dividends, capital gains, or interest—tax-free. As Giles puts it: “That may not seem like a massive financial advantage right now, but over time, this can really build as interest compounds and as balances start to grow.”

Other key accounts for Gen Z: the first home savings account (FHSA), a brand-new tool designed to help you save for a down payment, and registered retirement savings plans (RRSPs) if retirement saving is part of your long game.

2. Confidence comes with practice (and expert guidance)

Nearly half of Canadians say they lack confidence in investing. For younger Canadians, this can be a barrier to starting at all.

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“One of the myths that persist is that you need a lot of money to get started in saving and investing—and that’s just not true,” Giles says. “When you’re early in your journey, what matters more than the dollar amount is getting into the habit and sticking to it.”

That might mean setting aside just $25 or $50 a month. The real win is consistency, not the size of the contribution.

Giles says more and more young Canadians are seeking in-person guidance from a human expert: “We see younger Canadians coming in every day to speak to our personal bankers. They want to validate what they’ve learned online. They want to look someone in the eye and get personalized advice. So that’s a great step to take in terms of validating everything you’ve researched and learned online—and it doesn’t cost anything to book an appointment with a personal banker.”

3. Treat your finances like wellness

More than any generation before them, Gen Z is connecting money habits to health habits. Think of budgeting like meal prep or investing like committing to the gym.

“Financial health really is an important cornerstone in life,” Giles says. “We find many younger Canadians think of a financial checkup as a great annual activity—or even more frequent.” Think of it like going to the doctor or dentist—to make sure you’re on track with your goals.

The key questions to ask yourself are the same ones you’d ask in any other wellness routine:

• What are my goals? (Short-term, like a vacation, or long-term, like buying a home)
• What’s my timeline? (Months vs. decades)
• What’s my risk tolerance? (How comfortable am I with ups and downs in the market?)

4. Automate and forget about “timing the market”

For new investors, there are two big traps: hesitating to start because you don’t think you have enough money, and trying to time the market.

Giles explains both: “Even if it feels small, start saving and investing now. You will not regret it later in life that you started early.”

And on timing the market? “The reality is that trying to time the market is nearly impossible. Even professional money managers don’t do it consistently well. The trick is not timing the market, but how much time you spend in the market.”

One way to avoid both pitfalls: automation. Setting up regular contributions to a TFSA or FHSA means you’re investing on autopilot, removing the stress of “when” and keeping you consistent.

5. Make saving a non-negotiable habit

At the end of the day, financial success for Gen Z ultimately comes down to forming good habits.

“It comes down to making sure that you get into a regular habit of saving and investing—and sticking to it,” Giles says. “Even if the dollar amount you’re starting with is small, that’s okay. What matters more is getting into the habit of saving and investing and sticking to it.”

If you get a raise, consider increasing your contributions. If you can only manage a small amount now, start anyway. Over time, those early dollars compound into real wealth.

The bottom line

Gen Z is proving that consistent saving and investing isn’t something you put off until your 30s or 40s, it’s a habit you can—and should—start now. Whether that means opening a TFSA, setting up automatic contributions, or booking an appointment with a banker to clarify your goals, the most important thing is to start as early as possible.

As Giles puts it: “I highly encourage younger Canadians, even if it feels small, to start saving and investing now. You will not regret it.”

Read more about saving:

• 10 simple ways to save money
• How to save and invest smarter: What Canadians need to know
• How does interest work in a savings account?
• The money-saving tips and tricks I’ve learned while living single

About Alicia Tyler

The Toronto-based journalist has 20 years of experience as an editorial leader in digital and print media, specializing in consumer and service journalism. Her work has appeared in Money.ca, MindBodyGreen and Hone Health.

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