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Where do I put my money? |
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There are many ways to keep your money; under your mattress, inside a tin can, in your pocket. But the very best place for your money is a bank.
Having a bank account is convenient; a bank debit card takes much less space than cash, and nowadays pretty much everyone accepts debit cards.
You may be thinking -- Hold up. Cards are bad, right? They charge you interest!
Be careful -- Not all cards are the same.
A debit card is a symbol of your money, and it is connected directly to your bank account.
A credit card, on the other hand, is a promise of a loan. We will talk about it more on the section "credit"!
Having a bank account is convenient; a bank debit card takes much less space than cash, and nowadays pretty much everyone accepts debit cards.
You may be thinking -- Hold up. Cards are bad, right? They charge you interest!
Be careful -- Not all cards are the same.
A debit card is a symbol of your money, and it is connected directly to your bank account.
A credit card, on the other hand, is a promise of a loan. We will talk about it more on the section "credit"!
Opening an account
Most people start off with a chequing account and a savings account. To open these accounts, you must go to the bank and bring documents, as well as cash. Some banks don't have a minimum amount of money, but some have a minimum. For RBC, you must have $100 in order to open a chequing account. But be careful with fees! Try to avoid accounts that charge you every month. Ask an adult for help picking the right account.
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Keeping your money in the bank is a service that often does not cost a thing. Many bank accounts are free. How do banks make their money, you may ask? Well, while your money is available to you electronically, the bank actually is investing your money and making money out of your interest, even though you don't see this! This may feel unfair, but it is also proof that investing is a great thing to do. We will talk about this more on the investing section.
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Accessing my money
As a kid, you will have to go to the bank and speak to a teller to open an account and to deposit money every time you get some. Once you deposit the money, you can access it in many ways, such as online, on an ATM machine, or in person.
Be careful with ATM machines as many of them charge a high fee for usage! When in doubt, it is best to either use your debit card or go in person to speak to a teller if you need cash.
When you get a job in a big company, the money you earn will get deposited automatically into your bank account, but many places still pay using cheques. With the internet becoming more and more reliable, direct email deposits are also being used.
Be careful with ATM machines as many of them charge a high fee for usage! When in doubt, it is best to either use your debit card or go in person to speak to a teller if you need cash.
When you get a job in a big company, the money you earn will get deposited automatically into your bank account, but many places still pay using cheques. With the internet becoming more and more reliable, direct email deposits are also being used.
Understanding Transactions
Every month, you will get a statement from your bank with all the transactions that happened. There are many kinds of possible transactions. You will probably see deposits, which will show money going in as a positive number, as well as debits, which will be money coming out as a negative number. Always check your transactions every month, and if you don't recognize something, call your bank immediately.
If you are saving every month, you may also see transfers; these are amounts of money that are moved from your chequing account to your savings account, or vice-versa. You will also see transfers if you send money to someone else's account. For this to happen, you will need to fill out a form with all the person's information including their bank account and other banking codes.
If you are saving every month, you may also see transfers; these are amounts of money that are moved from your chequing account to your savings account, or vice-versa. You will also see transfers if you send money to someone else's account. For this to happen, you will need to fill out a form with all the person's information including their bank account and other banking codes.
