A Tax-Free Savings Account (TFSA) is a Canadian savings vehicle that allows individuals to save and invest money without paying taxes on the income earned within the account. Contributions to a TFSA are made with after-tax dollars, meaning you don’t get a tax deduction when you put money in, but any growth or withdrawals are tax-free. Each year, the Canadian government sets a contribution limit for TFSAs, which can accumulate if not used. Funds in a TFSA can be invested in various options, including stocks, bonds, and mutual funds, providing flexibility for different financial goals.