RRSPs (Registered Retirement Savings Plan) and TFSAs (Tax Free Savings Account) are tax sheltered savings plans for Canadians. An RRSP is primarily intended for retirement savings while TFSAs can be used for any short term or long term financial goals.
One of the main differences between an RRSP and TFSA is that RRSP contributions are tax deductible while TFSA contributions are not. If you withdraw money from an RRSP, you will be taxed because you made the contributions with pre-tax dollars. TFSA withdrawals are tax free because you made the contributions with after-tax dollars.
Unlike an RRSP, which must be converted to a retirement income vehicle at age 71, a TFSA does not have any minimum withdrawal requirement.
You need earned income to contribute to an RRSP but there is no minimum age limit before you can start contributing. You must be 18 to start contributing to an TFSA but there is no earned income requirement.