You are allowed to contribute $6000 to a Tax-Free Savings Account (TFSA) every year. This is a good way to save money. Lets assume youre able to contribute the full $6000 every year from now until you retire at 65. There are a few options for how you invest the money that you put in a TFSA. Look up the interest rate for:

a) a savings account (not necessarily part of a TFSA)

b) aGIC

c) an ETF (since these dont have fixed rates of return and can go up and down, look up the average rate of return)

Calculate how much you would have at the age of 65 if you contribute the full amount every year. What do you think the tradeoffs are for a higher interest rate?

You should look up the compounding frequency for the ones you pick, or make a reasonable guess. Most banks compound their savings accounts monthly or daily

. If youre compounding more often than yearly, you can divide the $6000 into appropriate smaller deposits (in real life, this would probably be automated).

Many banks offer a different interest rate depending on how much you invest or deposit. You can pick one rate and assume that its constant.

Make sure you write down which ones you picked and the interest rate you found.