According to Canada Revenue Agency (CRA) statistics released in 2025 covering the 2023 contribution year, Canadians aged 25 to 29 held an average Tax-Free Savings Account (TFSA) fair market value of $13,149. At first glance, that number may seem underwhelming. In reality, it is more understandable than many people think.
Young Canadians today face one of the toughest financial environments in decades. Youth unemployment remains elevated, particularly in larger urban centres, while the cost of housing, groceries, insurance, and other essentials continues to rise.
Many people in their mid-to-late twenties are also paying off student loans, starting entry-level careers, or simply trying to establish financial stability for the first time. The important thing is not comparing yourself to someone further along in life.
Instead, focus on building good habits early. For 2026, Canadians receive another $7,000 of TFSA contribution room. Even if you cannot maximize it immediately, making regular contributions can pay enormous dividends over the coming decades.
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What not to do with your TFSA
The tax-free nature of a TFSA can tempt investors to swing for the fences. After all, if a speculative investment doubles or triples, none of those gains are taxed. The problem is looking only at the upside.
If highly speculative investments go wrong, the losses hurt just as much. Unlike a non-registered account, you cannot claim capital losses for tax purposes inside a TFSA.
Worse still, if your investment collapses, the contribution room used to purchase it is effectively gone unless the investment somehow recovers before you sell.
TFSA contribution room is valuable. I would rather reserve it for investments with a high probability of compounding over many years than risk vaporizing it on speculative trades.
A simple ETF to build long-term wealth
For young investors with decades ahead of them, I think simplicity has a lot going for it. The BMO All-Equity ETF (TSX: ZEQT) is designed as a one-ticket portfolio that maintains approximately 100% exposure to global equities.
Through several underlying index funds, ZEQT provides exposure to Canadian stocks, U.S. stocks, international developed markets, and emerging markets, giving investors ownership in thousands of companies around the world.
Like other all-equity asset allocation ETFs, ZEQT is built for long-term growth rather than current income. Investors should expect volatility along the way, but younger Canadians often have the advantage of time to ride out market fluctuations.
For investors seeking a low-maintenance way to build wealth over decades, ZEQT offers a globally diversified solution at a relatively low 0.18% management expense ratio (MER).
