Banking Basics
What are different types of banks in Canada?
Commercial Banks, Government Owned Banks, Online Banks and Credit Unions
What is a Saving?
Saving means not spending all of your money right away. It means putting some money aside, so you have it later.
What is Interest?
Interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate.
How do you open a bank account?
To open a bank account, you need to provide the bank with your Name, Date of Birth, Social Insurance Number (SIN),2 different pieces of acceptable ID. Example: Driver's License and Utility Bill
What is percentage of your money you should put aside for savings?
It is a good idea to put 10-20% of the money you earn into savings. You can make it automatic with your bank. It is an investment in your future.
What is Earning interest?
When you put money in a bank, the bank can use that money to help them grow. They need to pay you for helping. The money they pay you is called earning Interest.
How to choose a right bank account?
The right bank account depends on your goals and needs. When comparing accounts, consider Costs and fees, Perks and benefits, Convenience and “liquidity”, Experience and Investment risk
What are 3 types of savings?
Short-term, mid-term and long-term savings.
What is Paying interest?
When we borrow money – like a credit card or a loan – banks will charge us for it. This is called paying Interest.
What are different types of bank accounts?
Checking account and Saving account
What are Emergency funds?
Emergency funds are a special savings fund set aside to cover unexpected expenses. It acts as a financial cushion to protect you during emergencies, helping you avoid going into debt and maintain peace of mind.
What is Compound interest?
Compound interest means that interest keeps building on top of interest. This can mean big growth – either in savings or in debt.
What are the Chequing and Saving accounts used for?
Chequing account is used for day-to-day transactions and it usually doesn’t earn interest.
Saving account is used to keep long-term funds and it gains interest. Some Tax-free accounts can help you save for life goals.
Name at least 3 saving tips
Look for low cost and free forms of entertainment, like going to a park, meeting at the library, or having a potluck with friends.
Make your lunch each day to avoid eating out.
Turn off or even unplug electronics when you are not using them. This can help save on your electricity bills.
Shop around and compare prices. Sometimes you can even get student discounts.
Walk, bike, or ride public transportation to save on a car and gas.
Consider no name/generic brands instead of brand names.
The best time to start saving was yesterday. What is the second-best time?
The second-best time is today.