Deciding between contributing to a tax-free savings account (TFSA) or a first home savings account (FHSA) depends on your goals. If you’re saving for your first home and looking to buy within the next 15 years, the FHSA is a great choice. It offers tax-deductible contributions like an RRSP, and withdrawals for a home are tax-free. But, if you take the money out for anything else, you’ll face penalties. If you’re not planning to buy a home soon or want more flexibility, the TFSA might be better. Contributions also grow tax-free, and you can withdraw the money any time, for anything you want, without a tax hit. If buying a home is your priority and you don’t need to touch the money until then, max out your FHSA first, then move to your TFSA. If you want more freedom with your withdrawals, focus on your TFSA, but still put leftover savings in your FHSA. One final tip: your FHSA contribution room only starts when you open the account, so it’s a good idea to open it this year even if you’re not contributing to it until next year.