Year-End Money Checklist for Canadians: 7 Things to Review Before December 31, 2026

The TFSA dollar limit for 2026 is $7,000, on top of any unused room you’ve built up from previous years. Growth and withdrawals are tax-free, which makes it one of the most flexible tools Canadians have.

Why it matters

Unused room carries forward, but interest earned in a regular savings account is fully taxable. Moving savings you already have into your TFSA is often the simplest year-end step there is.

The withdrawal timing tip most people miss

Withdrawals are added back to your room, but not until January 1 of the following year. If you’ll need to withdraw soon, doing it in December means the room comes back on January 1, 2027. Wait until January, and you won’t get it back until January 1, 2028.

Common mistake: re-contributing in the same year

Here’s a hypothetical example. Say someone withdraws $5,000 from their TFSA in March for a car repair, then puts the $5,000 back in October once things settle down. If they had no other unused room, that re-contribution counts as an over-contribution, and the CRA charges 1% per month on the excess until it’s removed.

Practical tip: Check your room in CRA My Account before contributing, but remember the CRA only updates TFSA information once a year in the spring. If you’ve moved money in or out this year, compare it against your own bank or investment records.

Learn more: 2026 TFSA contribution limits and withdrawal rules

The First Home Savings Account combines the best parts of an RRSP and a TFSA: contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free. The annual limit is $8,000, with a lifetime limit of $40,000.

Why December 31 matters here

FHSA room only starts building in the year you open the account. Opening one before December 31 gives you $8,000 of 2026 room, even if you don’t put a single dollar in yet. Unused room (up to $8,000) carries forward to the next year.

Imagine two friends, both planning to buy in a few years. One opens an FHSA in December 2026 and the other waits until February 2027. In 2027, the first friend could contribute up to $16,000 (2026 carry-forward plus 2027 room). The second friend is limited to $8,000. Same goal, same income, and one simple date made the difference.

Common mistakes

• Assuming the RRSP deadline applies. It doesn’t. FHSA contributions count for the calendar year they’re made in, so there’s no 60-day grace period in the new year.
• Thinking you need cash to open it. Opening the account is what creates the room. Funding can come later.
• Skipping the eligibility check. Generally, you must be a Canadian resident, at least 18, and a first-time home buyer under the CRA’s definition.

Practical tip: You don’t have to claim the FHSA deduction in the year you contribute. If you expect your income to rise, carrying it forward can sometimes make sense.

Learn more: How the First Home Savings Account (FHSA) works

You have until March 1, 2027 (60 days after year end) to make RRSP contributions that count for your 2026 tax return. Your limit is 18% of your 2025 earned income, up to $33,810, plus any unused room, minus any pension adjustment if you’re in a workplace pension plan. Your exact number is on your latest Notice of Assessment and in CRA My Account.

Why start now instead of February

Every February, I talk to people scrambling to find a lump sum. A monthly contribution started now spreads out the cost and gets your money invested sooner.

Common mistakes

• No plan for the refund. Putting a refund toward your TFSA, an RESP or debt can stretch its value further.
• Forgetting workplace plans. Group RRSP contributions at work use the same room.
• Over-contributing. Beyond a $2,000 cushion, a 1% per month tax applies on the excess.

Practical tip: If your income was unusually low this year, you can contribute now and save the deduction for a higher-income year.

Learn more: TFSA vs RRSP: what every Canadian needs to know in 2026

The Canada Education Savings Grant (CESG) adds 20% to the first $2,500 you contribute to a child’s RESP each year, up to $500 per child per year. Contributions must be made by December 31 to count for 2026. If you missed earlier years, you can catch up gradually, up to $1,000 in grant per year, with a lifetime maximum of $7,200 per child.

Why it matters

Very few places add government money directly to your savings. Catch-up is limited to one extra year at a time, so families who skip several years can run out of time before the child turns 17.

For example, a hypothetical family starting late, with a 10-year-old, might contribute $5,000 a year to capture the $1,000 maximum grant and close the gap faster.

Common mistakes

• Contributing in early January instead of December. A deposit made on January 2 counts for the new year, not the old one.
• Waiting too long for older children. Special rules apply to children aged 16 and 17, so don’t assume you can start then and still receive the grant.
• Not asking about other grants. Lower-income families may also qualify for the Canada Learning Bond, which requires no contribution at all.

Learn more: Registered Education Savings Plan (RESP): what it is and how it works

Life insurance is often set up once and forgotten. But a new baby, a new home, a marriage, a business or a bigger mortgage can all change how much coverage your family would actually need.

The two questions to ask

A quick review answers two things: Is the amount still enough? and Is the term still long enough? If you bought a policy when you were renting and single, and you now have a mortgage and two children, the numbers have probably changed.

Common mistakes

• Relying only on group coverage. Workplace life insurance is usually tied to your job and may end if you leave.
• Assuming mortgage insurance from the bank is enough. It typically pays the lender, not your family, and the payout can shrink as your mortgage balance goes down.
• Waiting until health changes. Coverage is generally easier to get while you’re younger and healthy.

Practical tip: Jot down your mortgage balance, other debts and how many years of income your family would need before any review.

Learn more: Important life events that lead to term life insurance decisions and Why personal life insurance beats mortgage insurance in Canada

Beneficiary designations on life insurance, RRSPs and TFSAs matter more than most people expect. In many cases, a designation can allow money to pass directly to the people you’ve named, outside of your estate.

Why it matters

Paperwork doesn’t update itself. Picture a hypothetical person who named a sibling on their RRSP before marriage and children, and never updated the form. The money may not go where they’d want today.

Common mistakes

• Forgetting older accounts. Old workplace plans and accounts at former banks often carry outdated designations.
• Mixing up beneficiary and successor holder on a TFSA. Naming your spouse or common-law partner as successor holder lets them take over the TFSA, which can make things simpler for them later.

Practical tip: Rules can vary by province, and a will can interact with designations. For anything complex, speak with an estate lawyer as well.

Learn more: Estate planning 101: why life insurance is your secret weapon

Winter is when many Fraser Valley families welcome parents or grandparents from abroad.

Visitors and Super Visa coverage

If family members are coming for the winter, arrange visitor or Super Visa medical insurance before they arrive, not after. Coverage bought after arrival can come with waiting periods or limits on conditions that already started. For Super Visa applicants, proof of private medical insurance is part of the application, so check current IRCC requirements before you buy.

Workplace benefits

If you have group benefits, check whether your plan year resets on January 1. Unused dental, vision or health spending amounts may not carry over, so book that eye exam or cleaning in December.

Learn more: How to choose the best Super Visa insurance plan in Canada

A year-end review takes about 45 minutes and covers your savings accounts, insurance and beneficiaries in one conversation. Wiseconomy is based in Abbotsford and serves families in Surrey and across BC, Alberta and Ontario.

Book a financial overview, call us at +1 (778) 798-1994, or contact us.

Disclaimer: This article is general information only and isn’t personal financial, tax, or legal advice. Contribution limits and rules are set by the Government of Canada and the CRA; confirm your own room in CRA My Account before contributing. Examples in this article are hypothetical and for illustration only.

Sources: Canada Revenue Agency (canada.ca) — TFSA contribution room; MP, DB, RRSP, DPSP, ALDA, TFSA limits; First Home Savings Account; Canada Education Savings Grant. Immigration, Refugees and Citizenship Canada (IRCC) — Super Visa requirements.