Planning2 min read · Updated October 21, 2026
Where to put your money first: debt, TFSA, FHSA or RRSP
A plain order for Canadians: employer match, expensive debt, a cash buffer, then TFSA, FHSA and RRSP, with a worked example using real numbers.
The order
- A one-month buffer.
- Any employer pension or RRSP match.
- Debt above about 10% interest.
- Three to six months of costs in a TFSA or high-interest savings account.
- FHSA if you want a first home, then RRSP and TFSA.
TFSA, FHSA or RRSP?
The TFSA grows tax-free and you can take money out when you need it. The FHSA gives a tax deduction on the way in and tax-free withdrawals for a first home. The RRSP gives a deduction now and is taxed when you take it out, so it suits you most when your tax rate is high today.
The numbers
$4,600 take-home, $3,100 of costs, $150 minimum payment. Spare: $1,350. Putting it all on the debt clears $5,000 in about 4 months for $210 of interest. At the minimum, 4.3 years and $2,798.
Free help
Credit Counselling Canada lists nonprofit agencies. Talk to your lender before you miss a payment.
Common questions
Should I pay debt or fill my TFSA?
Pay debt above about 10% interest first.
Can I use my RRSP to buy a first home?
Yes, through the Home Buyers’ Plan, but the FHSA is often better.
How much should I keep in cash?
Three to six months of essential costs.