What you need to know about banking.
Type of Spender
First of all, determine what type of spender you are. Are
you a big spender, a saver, a shopper, a debtor, or an
investor? No matter what type of spender you are it is
still important to be responsible with your money.
Budgeting means figuring out what money will be
coming in, how much you will be spending and how
much will be going out. You have to consider the
various sources of your money and how you spend it.
Sources of money or income are called revenue and
the ways of spending it are called expenses.
Some examples of revenue and expenses are,
Revenue: Part time job, allowance, inheritance, and
Expenses: Clothing, transportation, food, and
Why do you need a
Safety of your money
Interest paid on savings
Ability to make payments using cheques
Use of a debit card
Ability to have a credit rating and become eligible for loans,
mortgages or credit cards
Ability to save money
Ability to invest your money
Types of Financial
Chartered banks (e.g., Royal Bank of Canada, Canadian Imperial
Bank of Canada, Bank of Nova Scotia, TD Canada Trust, Bank of
Montreal, National Bank of Canada)
Trust companies (e.g., Citizen's Trust Company, Montreal Trust
Company of Canada)
Credit Unions (e.g., Coast Capital Savings, VanCity Credit Union)
Investment Companies (e.g., Wood Gundy, Nesbitt Burns)
A bank statement or account statement is a summary
of financial transactions which have occurred over a
given period on a bank account held by a person or
business with a financial institutions.
Hey we all make mistakes and in rare cases, banks will
make mistakes or someone may have access to your
account without your knowledge. These bank
statements will help you keep an eye on your money
and make sure everything is correct.
There are different saving plans available to
consumers. Including, regular saving accounts, TFSA’S
(Tax free savings accounts), term deposits, and
guaranteed investment certificates (GIC’S).
Investing takes saving one step further in a person’s
financial plan. Small amounts saved and invested can
easily grow into larger sums.
A debit card is a service provided by a bank. It can be
used for purchasing goods or services at various
places. Each bank creates an identity for its debit card
to customize the product and differentiate it in the
market. Debit cards are linked to an individual's bank
account, allowing funds to be withdrawn at the ATM
and point-of- sale without writing a cheque.
And there you have
it. Simple things to
know about banking