If managing your finances feels overwhelming or confusing at times, or if you’ve been a bit intimidated and haven’t gotten started, you’re in the right place!
We’ve had a little fun today—we’ve related managing your personal finances to three popular tales. This is a nifty way to shed some light on finding the right balance in your banking with a credit union.
Cinderella
A dream is a wish your heart makes—that’s the theme of this classic tale. But when it comes to making your financial goals a reality, you have to do more than dream.
Go the royal ball—or credit union—and don’t stop there: chase down your financial goals and find the ones that fit you, and only you.
Keep reading to find out how!
Goldilocks and the Three Bears
We doubt there are many who haven’t heard this famous tale, but here’s the gist, for old time’s sake:
While they wait for their porridge to cool, a family of three bears departs for a walk. Goldilocks, a young girl, stumbles upon their house while they’re out and tries each of the bears’ porridge, chairs, and beds.
The father and mother bears’ bowls of porridge are too hot and too cold, and their chairs and beds are too hard and too soft. But the baby bear’s porridge, chair, and bed are all “just right.”
What happens next in the story is besides the point (Goldilocks falls asleep in the baby bear’s bed and runs away on the bears’ return). Our point is, when it comes to managing your personal finances, you need to find the accounts and system that are “just right” for you!
Finding the Financial Solution “Just Right” For You
Factors like age, lifestyle, and income will influence what setup works for you. Finding the equivalent of the right “porridge temperature” or “glass slipper” for you at a credit union includes (but isn’t limited to) considering the following products:
1. Chequing Account
- This is a banking staple—you can use a chequing account for basic spending. And did you know you can bank for free with Cambrian’s Unfee when you set up a monthly direct deposit?
- If you’re a student and below age 23, you can use a Connect Account, which never has monthly fees.
- Premium chequing accounts also have Unfee, and they include 10 free e-transfers per month.
2. Savings Accounts
- Use regular savings accounts for short-term savings goals, like saving up for travel or emergencies.
- You can have up to 10 savings accounts.
- Always move money from savings to chequing (when spending) to avoid fees.
3. Guarantees Investment Certificates (GIC)
- GICs are a great safe investment option. They can be within a TFSA or RRSP, and they are locked in for a term, typically between one and five years. Find the GIC “just right” for you!
4. Tax-free Savings Account (TFSA)
- TFSAs are great for medium- to long-term savings (six months to five years), for things like a car or a house.
- Interest earned is tax-free, and you can set up GICs within it.
- Remember, you will have a set contribution amount per year. Check your Canada Revenue Agency account to find out what your limit is.
5. Registered Retirement Savings Plan (RRSP)
- RRSPs are great to contribute to if you want to reduce taxes while saving for your retirement years because contributions to your RRSP lower your taxable income.
- You can also have GICs within your RRSP.
6. Credit Cards
- Get a credit card and start building up your credit score when you turn 18. Try using Cambrian’s credit card selector to find the Collabria credit card “just right” for you!
- It is recommended to never use more than 30 per cent of your limit.
7. US Dollar Account
- These are great for if you travel a lot in the US or shop online from American companies.
- This account is free if you maintain a $1,000 balance.
With all that information in mind, here's one last little tale:
The Tailor of Gloucester
In Beatrix Potter’s book, The Tailor of Gloucester, a kind-hearted, humble tailor is commissioned to create a coat for the mayor of Gloucester. The tailor begins the coat, meanwhile he discovers and releases some mice his cat had trapped in their house.
When the tailor falls ill and can’t finish his project, the grateful mice pitch in and finish the coat overnight, just in time for Christmas Day.
What does this have to do with us today? If you use your imagination, the mice are the Cambrian Credit Union team members, ready to help you out where you may need it.
We can help
Book a meeting with one of our advisors. Who knows, maybe you'll find your financial happily ever after!
