Money

BANKS, CREDIT UNIONS AND TRUST COMPANIES
           You can open an account at a bank, a credit union, or a trust company. Before banking,

        find out what kind of accounts it has and about interest and service charges for them. It

        may vary.

PAYING BY CASH, CHEQUE, CREDIT CARD, OR DEBIT CARD
           To pay by cheque, you must show the cashier some ID. For that, the driver’s licence, or the

       passport, or a credit card are the best best. If you don’t have the driver’s licence, you may get

       a ID card from a Driver Services Centre. Look in the Blue Pages for that section.

          You can get credit cards from department stores or gas companies. You can also get

       bank credit cards like Visa and Mastercard.

          Debit cards can be used instead of a cheque or credit card to buy things in some

       stores. You get these cards from your banking institution. When you buy things using these

       cards, the money gets deducted from your account immediately. You may also ask for

       some cash for your own use at that time. Each time you use your debit card, there is a fee

       for the service.

BANKING BY PHONE AND INTERNET
   You may be able to do some of your banking from home with a touchtone phone such as

Paying bills. You may also be able to do your banking from home over the Internet. For this,

You need a computer, a telephone/cable line to connect to the internet and a software to

Access the Internet. You can get more information about these services, both from the

telephone company you are using and your bank.

MORTGAGE  AND  LOANS
           A mortgage is borrowed money to buy a home. A loan is also borrowed money for other

        Reasons, such as to buy a car, or a TV. You must pay back part of the borrowed money

        Each month with interest. If you end up not being able to repay the borrowed money, there

        Is a provincial government agency that will give you free advice and counselling on what to

        Do. Look in the provincial government section in the Blue Pages under “Debt Counselling”

        Or “Debtor Assistance”  for address and telephone number.

PST  AND GST
           Whenever you buy something in B.C., you must pay seven per cent Provincial Sales

       Tax ( PST) and seven per cent Federal Goods and Services Tax ( GST). There is, however,

       No PST on clothes for children under 15 years old. If you have a low income, you can get a

       GST credit, meaning the government sends back money to you four times a year. To apply

       For this return, you need to fill in the special page of the income tax form.

INCOME TAX
           All the working people have income tax taken off their pay cheque each time. Still,

        Everyone has to fill in a tax form each year and send it to the Revenue Canada by April

        30th. If too much tax was taken off your pay cheques, the government may send you

        back that amount. Similarly, you may have to pay more to the government because not

        enough money was taken off your pay cheques.

           Self-employed people who own businesses have to pay income tax as well. Non-working

       people, or no income people also have to fill in the tax form. During March and April, many

       community organizaitons give free help with filling in income tax forms. You can also pay

       someone to help you fill up the forms. For more information, contact Revenue Canada

       at 689-5411 ( in Vancouver), 363-0121 ( in Victoria) and 1-800-959-8281 ( elsewhere).

PROPERTY TAX
           Everyone who owns a house, land, or buildings must also pay property tax. Your

       municipality office sends you a bill once or twice a year. You can also pay your property tax

       as part of your mortgage.

INVESTING MONEY
Depending on you need, there are a number of ways available to invest your money.

 

TERM DEPOSITS AND GICs :
        Term deposits or Guaranteed Investment Certificates ( GICs) pay more interest than

        Savings accounts.

CANADA SAVINGS BONDS AND TREASURY BILLS :
        When you buy Canada Savingsbonds and Treasury Bills, you are lending money

        To the government. In return, the government pays you interest on the bonds.

RRSPs :
        Registered Retirement Savings Plan ( RRSP) let you invest money for your

        Retirement. Putting money in a RRSP can lower the taxes you pay every year. If you

        Are working or earning money from a business, you can put money in an RRSP. If

        You take out some or all of the money before you retire, you will have to pay tax on it.

        In that case, the tax is lower if your income is low.

LARGER  INVESTMENT :
You may want to buy shares in a corporation,  join with others in a “mutual” investment

Fund, or invest in other ways that may fit your need.

For further information on the options available, contact any bank, credit union, or trust

Companies. You may also talk to an investment/financial planner for advice.