Savings
What is the definition of savings?
SAVING means not spending all your money straight away but putting it away so you can spend it later.
What type of account is best for day to day purchases that you would use a debit card for?
Chequings account
T/F. Coupons are a way to save money on purchases.
True
T/F. A savings account at a bank will earn interest.
TRUE. A typical savings account earns less than 1%, while a high interest savings account or e-savings can earn 2-5%
What does ATM stand for?
Automated Teller Machine
T/F It is ok to give your PIN number to a friend to go buy snacks.
What percent of the money you earn (income) is ideal to put away for saving?
10-20%
This type of financial institution is owned by members rather than the government or commercial bank.
T/F. Setting automatic amounts to go into a savings account is a good way to start saving for your goal.
TRUE. Set it and forget it and watch the money build.
What 3 types of savings accounts are good to have?
Emergency fund
Short term savings
Long term savings
What two things are required to open a bank account?
SIN
photo ID
T/F. You can ask your personal banking officer for deals or better rates.
TRUE.
What is compound interest.
Interest added to the principal and then calculated on that new amount.
What might you want to consider when choosing where to open a bank account?
Service fees
Convenient access (online/in-person)
Services
T/F. A growth mindset will help you be open to learn new things and find different solutions to reach your goals.
TRUE.