Gen Z leads the way with investing their refunds (33%), but most (63%) still say they don't know enough about registered accounts
TORONTO, May 4, 2026 /CNW/ - With tax refund season underway, a new TD survey finds many Canadians who receive a refund are choosing to put that money to work in practical ways and skipping the splurge.
Economic headwinds are redefining financial priorities for many Canadians polled and directly shaping how they plan to use their refunds this year, particularly for Gen Z:
- More than 2 in 5 Canadians expecting a refund (41%) say they'll use it differently than they normally would because of today's economic conditions. That rises to roughly half among Gen Z (53%).
- Almost 2 in 3 Gen Z respondents expecting a refund (63%) plan to save it, well above the national average (47%) and a huge jump from 2025 (30%).
- Gen Z is also the most likely to invest their refund (33%), compared with the national average (25%) and more than doubling year-over-year (14% in 2025).
"Younger Canadians, especially Gen Z, are showing that you don't have to wait for the 'perfect' moment to start investing," said Aaron Clark, Senior Vice President, Everyday Banking, Saving and Investing at TD. "For many, it's as simple as opening a TFSA, contributing as they're able and learning as they go. That kind of early momentum can help build confidence and long-term financial stability."
How Canadians plan to use their tax refunds
Rather than spending on travel or major purchases, the survey found that Canadians expecting a tax refund this year are far more likely to save, pay down debt or invest than they did in 2025, signaling a more intentional approach to managing their money:
- 8 in 10 Canadians (80%) are expecting a tax refund this year.
- Nearly half (47%) plan to save their refund, up from 29% last year.
- More than a third (36%) say they'll use it to pay down debt, compared to 23% in 2025.
- 1 in 4 (25%) intend to invest their refund, a 10-point increase from the previous year (15%).
- One-quarter (25%) plan to use their refunds to cover day-to-day expenses, versus 18% last year.
- Discretionary spending trails far behind, with just 11% planning to use their refund for travel and only 8% for a major purchase or lifestyle change.
How Canadians are approaching investing and registered accounts
Beyond tax season behaviour, the survey highlights broader shifts in how Canadians are approaching investing and registered accounts:
- TFSAs have surpassed RRSPs as Canada's most common primary investment account, with 38% of Canadians naming a TFSA as their main account versus 26% for RRSPs.
- More than half (55%) of Gen Zs surveyed have a TFSA, while just 29% have an RRSP. And of those with a TFSA, 47% say it is their primary investment account.
- Younger Canadians are more likely to invest consistently, with 54% of Gen Z and 63% of Millennials contributing to a registered account at least once a month, compared with 47% nationally.
- Gen Z investors are more likely to explore a broader mix of investment options in their registered accounts, favouring stocks (30%) and ETFs (24%), while overall, Canadians are opting for more traditional choices such as mutual funds (36%) and GICs (34%).
Among Canadians without a registered account, 44% say they don't have enough money to invest. For Gen Z, the biggest obstacle is familiarity: 63% say they don't know enough about registered accounts, versus 27% nationally – underscoring a clear confidence gap.
"When registered accounts feel complex and budgets are stretched, it can be hard to know where to begin," added Clark. "Starting small, focusing on one account and building over time can make investing feel more manageable. Often, it's that first step that can help build confidence and set people on a clearer path toward achieving their financial goals."
Top 5 Questions on Investing and How to Use Your Tax Refund
- What's a smart way to use a tax refund in Canada?
Putting your tax refund into a registered account like a TFSA, RRSP or FHSA is a smart move in Canada. These accounts offer valuable tax advantages and can help you grow your money while you work toward goals like owning a home, retirement, or education. Even a small contribution can help build good investing habits. - Should I save my tax refund or invest it?
In Canada, the choice to save or invest your tax refund can often come down to when you'll need the money. If you think you'll need it within the next couple of years or you don't have a cash cushion, saving could be the route to follow; if your goal is longer term, investing may help your money grow more than in a savings account . - TFSA vs. RRSP vs. FHSA: Which should I choose?
Choosing between a TFSA, RRSP, or FHSA in Canada depends on your savings goal: RRSPs are designed for retirement with tax-deferred growth, TFSAs offer flexible, tax-free withdrawals for any purpose, and FHSAs provide tax advantages for first-time homebuyers. Review contribution limits and rules to pick the account that best matches your needs. - Can I start investing in Canada with a small amount of money?
Yes -- you can start investing in Canada with a small amount, and starting small is a practical way to build confidence. Focus on an amount you can contribute consistently and consider investing in a TFSA or RRSP when it fits your goals, since registered accounts can help your money work more efficiently. - Why might some Canadians find it hard to start investing -- and what can help?
Many Canadians may find investing hard to start because it can feel too expensive or too complicated. A good first step is to keep it simple: set a clear goal and time horizon, automate a small contribution, and start with diversified investment options so you're not trying to "figure everything out" all at once.
About the TD Survey
This TD survey, conducted using the Leger Opinion panel, ran from March 26th to March 30th, 2026, with a nationally representative sample of 1,521 Canadian adults; results were weighted by age, gender and region to match the population, according to Census data. For comparison purposes, a probability sample of 1,500 has an estimated margin of error of ±2.5%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.1 million clients across four key businesses. TD ranks among North America's leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on January 31, 2026. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.
SOURCE TD Bank Group
