Majority of Gen Z Canadians plan to invest their tax refund, TD report says

Gen Z and Millennials have an advantage over older generations thanks to the power of compounding over time.

As tax season wraps up, a new survey commissioned by TD Bank says three-quarters of young adults plan to invest their tax refunds.

The survey, conducted by The Harris Poll Canada, randomly selected 1,544 Canadian adults, according to a TD report.

The report says Generation Z is leading the charge, with 76 per cent of respondents saying they plan to invest their tax refund, while 60 per cent of Millennials and 48 per cent of Generation X respondents say they’ll invest their tax refunds.

One university student told CTV News he plans to invest the money he gets back.

“I am expecting a tax refund, and I usually just put it back into the stock market…because it comes back to me as more money,” Zarek Sand said.

Another student said her tax refund went to covering the cost of living.

“I paid bills and paid for rent,” Brianne Lehoux said.

• Get the latest news from Saskatoon, sent directly to you: Download the CTV News App

TD says half of the Saskatchewan and Manitoba respondents believe economic pressures, such as inflation and the rising cost of living, will impact how they’ll use their tax refund – 45 per cent said they’ll invest their refund.

“If you’re just getting started in saving and investing, it’s not so much the dollar amount that matters at the beginning, it’s actually more important to get into the habit of saving and sticking to it,” said Pat Giles, vice president of Saving & Investing at TD.

The report says knowing what options are available is important for those hoping to invest or save their money, whether that’s with a tax-free savings account or other investment or savings methods.

“You don’t need a big lump sum of money to open a TFSA. Those small contributions will add up over time,” Giles said.

Regardless of what people decide to do with their tax refund, one thing that has not changed is the deadline. Taxes have to be filed by April 30.