You need a bank account
Most Canadians keep their money in a bank or other secure financial institution. Banks, trust companies and credit unions offer various services – saving money, writing cheques, getting a debit card, borrowing money, getting a credit card. They charge service fees. These topics are summarized below and under each topic there is a link to educational information from the Canadian Bankers Association.
Opening a bank account
You will need to provide some personal information as well as identification such as your passport or your Social Insurance Number.
Bank machines
Many Canadians do virtually all their banking on automated banking machines, and pay for good with the same card. Other banking options are telephone and online.
Earning credit
Credit is when you borrow money to buy something now and pay it back later with interest charged. Visa and Mastercard are popular credit cards. You can apply for a card at your bank. Many large chain stores issue their own credit cards. It's also common to borrow money to buy a car and get a mortgage loan to buy a house. Make sure you understand the terms of repayment. Make sure you "stay on top" of your credit so the amount doesn't become unmanageable.
Direct deposit
Many employers give you your paycheque by depositing it electronically, directly into your bank account. Government also have this option when paying benefits.
Sending money
Do not send cash through the mail. Go to a bank to get a certified cheque or money order. You can also get money orders at Canada Post. Another choice to send money is to send it by "wire," using one of the companies listed in the Yellow Pages phone book.
Payday loans
There are several companies that offer "payday" and other loans. As with any contract make certain you understand the terms. The amount of interest these companies can charge is government regulated.
Fraud and identity theft
Identity theft is a grave concern. Even if a fraud artist obtains only your Social Insurance Number he could create bank or consumer accounts – and leave you responsible for the bills. Telemarketing (when someone phones you with a "sales pitch") is a problem because some solicitors are honest while others are not. The RCMP have a service called Phonebusters that reports the latest scams and explains how to prevent yourself from falling victim to a "scam." Never give out personal to anyone over the telephone.
More information
In addition to the consumer resources linked to on this webpage, there is a wealth of information online or as free booklets that you can order on the website of Canadian Bankers Association.
A loonie is not a duck
Our currency is the Canadian dollar. Paper money is in denominations of $1000 (rare), $100, $50, $20, $10, and $5. Coins are a penny (1 cent) nickel (5), dime (10), quarter (25), 50-cent piece (rare), and, the loonie and the toonie ($2), so named because of the bird on the coins.
Insurance
Getting insurance for yourself and your property is a very good idea. For vehicles and drivers insurance is mandatory. Why insure yourself? If you are, for example, the sole earner in your family, what would happen financially if you died or were disabled? There is also insurance for loss of home, business or personal possessions as well as dental and eye care and health coverage for travelling outside Manitoba. Compare rates. Insurance companies listed in the Yellow Pages, under Insurance.
Taxes
Everyone in Canada must pay taxes. Taxes are collected as:
- Income tax: federal and provincial
- Provincial Sales Tax (PST)
- Goods and Services Tax (GST)
- Property and school tax
- Business tax
Canada's three levels of government (municipal, provincial and federal) collect taxes to pay for public services such as health care, education, roads and cultural activities.
Income taxEvery adult must complete and submit to the Canada Revenue Agency an Income Tax Return by April 30 each year. You can get help to fill out your income taxes. Some services charge a fee (see Tax Return Preparation in the Yellow Pages). If your income is low you may be able to get your taxes done free of charge. Phone the International Centre (943-9158), Welcome Place (977-1000) or visit Canada Revenue Agency.
