Updated: April 2025  |  bremo.io financial guides

Youth and Teen Savings Accounts Canada 2025 — Teaching Kids to Save

Building good savings habits early is one of the greatest financial gifts you can give a child or teenager. Canada has a range of savings accounts and tools designed for young people — from basic youth savings accounts to registered education savings plans and, once they turn 18, the TFSA.

Savings Accounts for Children (Under 18)

Children cannot open a TFSA until age 18, but most banks offer youth or teen savings accounts with no fees, no minimum balance, and some even pay a higher rate for young savers. These accounts teach the basics of saving while their money earns interest.

Features to look for:

• No monthly fee
• No minimum balance
• Competitive interest rate
• Parent/guardian joint account access until a certain age
• Online and mobile access to monitor balances

RESP: Saving for Education

The Registered Education Savings Plan is the most powerful savings tool for a child's education. The federal government's Canada Education Savings Grant (CESG) adds 20% on the first $2,500 contributed annually — that's $500/year in free money, up to $7,200 lifetime per beneficiary.

• Open as early as after birth (SIN required)
• Contribute up to $2,500/year to maximize CESG
• Lifetime contribution limit: $50,000 per beneficiary
• Low-income families may qualify for additional Canada Learning Bond (CLB) grants

TFSA at Age 18

The TFSA is one of the best financial gifts for a young person turning 18. Contribution room begins accumulating from age 18. The 2025 annual limit is $7,000. Encourage teens to open and contribute to a TFSA early — a 19-year-old who maxes their TFSA each year and invests in diversified ETFs could have a substantial tax-free nest egg by their 40s through compounding.

Teen Savings Strategy

For teenagers with part-time jobs or allowance money:

1. Open a no-fee youth savings account for short-term savings
2. At 18, open a TFSA and shift savings there for tax-free growth
3. If eligible, contribute to an RRSP if they have earned income
4. Consider a low-cost investing account for money they won't need for 10+ years

Teaching Financial Habits Through Accounts

Having a dedicated savings account — separate from spending money — teaches the fundamental habit of saving first. Even small amounts matter: $50/month from age 15 to 25 at 4% becomes over $7,400 before investing it in anything. Compound interest is easier to teach with a real account showing real balances growing.