Managing Your Money
The four most important aspects of money management are:
- identifying and organizing the money you carry
- making safe and efficient purchases
- banking
- developing a budget
Identifying and organizing money
It is actually quite easy to set up a system for identifying and organizing the money you carry.
- When you receive change from a cashier or withdraw money at the bank, ask what each bill is as it’s handed to you.
- Fold each bill denomination in a different way.
- Put smaller denominations at the back of your wallet or purse and progressively larger denominations in the front. This lets you monitor the bills in the front as you remove bills from the back—it reduces the risk of dropping money.
Suggestions for folding bills
- Five dollar bills are not folded at all and are kept at the back of the bill compartment.
- Ten dollar bills go in front of the fives. Fold them in half lengthwise with the fold at the top.
- Twenties are placed in front of the tens. Fold them in half from left to right so they have a vertical fold in the center. Keep them in the right side of the bill compartment.
- Fifties go in front of the twenties, and are folded twice. Make the first fold the same as for the twenty, then fold it again in the same direction. This means the fifty is folded in quarters. When you put it in your wallet, rotate it so the folded side is up.
- Try not to carry bills larger than twenties. Put larger bills in a zippered compartment in your purse or wallet and try to change them into smaller denominations as soon as possible. Even easier, use a bank card. If you lose your card, your money is inaccessible without your PIN.
- Get a coin organizer if you have trouble identifying coins.
- Consider using a Bank Note Reader. This device helps people who are vision impaired or deaf-blind identify Canadian bank notes. The reader scans the bills and reads the denominations out loud. As explained by the manufacturer, “users may select an appropriate output mode from bilingual-speech, tone or vibration, allowing for different levels of discretion when operated in public. There is a volume control for speech and tone announcements as well as a standard headphone jack.” To find out more about this device, visit the manufacture’s website. The B.N.R. is available through the C.N.I.B..
Identifying coins
Canadian coins have distinct sizes and features:
- A penny is slightly larger than a dime. Pennies have a smooth edge and a slightly rough surface.
- A nickel is larger than a penny and has a smooth edge. Old nickels that are still in circulation have a multi-sided edge, but all nickels are the same size.
- A dime is the smallest coin. It has a finer surface than a penny and has a “milled” or serrated edge.
- A quarter is larger than a nickel and has a milled edge, just like a dime.
- A one-dollar coin or “loonie” is larger than a quarter and has a multi-sided edge.
- The two-dollar coin or “toonie” is made from two different metals and consists of a disk with a ring around it. It has an alternating smooth and milled edge. If you have a few toonies in your pocket, they make a jingle that is different from other coins.
- Emptying your pockets each day and putting your coins into separate containers can help you save a considerable amount of money in a short time.
Making Purchases
It’s important to have control over your money transactions when you shop.
- Organize your money in your wallet or purse to be sure of the bills you’re giving the cashier.
- Present each bill separately to the cashier and ask for confirmation of its denomination.
- Also ask for confirmation when the cashier hands you the change. This keeps the exchange honest by bringing it to the attention of others waiting in line. It also gives you the chance to fold your bills and put them away as you receive them.
- Carry a bank note reader if you intend to use cash when you go shopping. It can make you feel more confident.
- Don’t tell your Personal Identification Number (PIN) to anyone other than a bank employee, trusted friend or relative. If you can’t enter your PIN number independently, never say it aloud in public. Instead, keep it written on a piece of paper, disguised as a name and phone number. Explain to the person in advance that the last X digits of the phone number are your PIN. Keep it in a safe place in your purse or wallet.
- Ask the cashier to confirm the amount on the debit machine before you press the OK button.
- Ask for a receipt. Receipts often show your full bank or credit card number, so destroy them after you’ve balanced your bank book.
- Record debit and credit card numbers at home in an accessible format along with the customer service telephone numbers for each. This means you can deactivate your cards quickly if they are lost or stolen.
Banking
The following tips can help you set up a system for banking.
- Consider first how you intend to do your banking. Will you bank in person and ask a teller for assistance? Will you use Internet or telephone banking? Are you comfortable with automatic transfer machines (A.T.M.s)?
- If you choose online or telephone banking, you will have 24 hour access to checking your account balance or statement, transferring funds between accounts, and making bill payments. However, you will need to go to a bank or bank machine to deposit or withdraw cheques or cash.
- If you will be doing your banking in person, choose a branch that’s convenient in terms of location and hours of operation.
- Location is not as important if you bank by phone or online. Your bank card will work at any branch or A.T.M..
- If you are unable to read an A.T.M. screen, look for a branch with A.T.M.s that have speech output. Plugging in the headphones from any standard portable music device will activate the screen reader. The advantage here is that you can bank with complete independence and confidentiality. Remember to conceal your PIN number.
- Introduce yourself at the customer service counter of any bank that you’ll be using regularly and ask for an orientation to the bank. You’ll need to know where to find the A.T.M.s and the lineup for the tellers.
- Learn the locations of accessible A.T.M.s on the routes you travel regularly.
- Keep track of transactions by phone or computer.
- Try to do your banking at off-peak times if you need personal assistance. Avoid the lunch hour or after-work crowds.
- Prepare paperwork in advance. Though the staff is generally happy to do this for you, you’ll save time doing it yourself. Most bank branches give you a bank card to use when you are with a teller. Once you swipe the card and enter your PIN, the teller can see your accounts on the computer. This avoids using paper deposit and withdrawal slips. For security reasons, don’t sign cheques before taking them to the bank.
- Ask for raised-line cheques if you can fill them out on your own. You can also get a template made for your cheques.
- Ask for bank statements in Braille if this is your preferred format.
- Obtain a bank note reader free of charge by contacting your nearest C.N.I.B. demonstration centre.
Developing a Budget
Developing a personal budget is about making the most effective use of your money. This is especially important if you have a limited or fixed income.
Organize your budget in the format that works best for you—Braille, large print, computer or tape recorder.
Budgeting
- Start by recording your total monthly income.
- Then record everything you spend each month. This includes monthly expenses like groceries, rent, telephone, household supplies, and heat and hydro (if applicable).
- Other expenses are called “discretionary.” You have more control over discretionary expenses. They include clothing, Internet access, cable television, eating out, social and recreation activities, and transportation.
- Create budget categories so you can organize your spending and get a clear picture of how you spend your money and where. Sample categories are: shelter, food, communications, entertainment (including eating out), and clothing and personal care. See the list of categories suggested by Wikipedia below.
- Record your spending in each of these categories over a couple of months. You’ll begin to see ways to manage your income more effectively. It’s surprising, for example, how much you can save by making your coffee at home instead of buying it at a café.
- Cut down on discretionary expenses if you’re running out of money before the end of the month.
Making ends meet
If you can barely manage at the end of the month, here are some suggestions:
- Call your phone company and ask for the most basic service—no call waiting, no answering service, etc. People will call back if the line’s busy. You can also get a perfectly good answering machine for under $30. Renting the service from a phone company is like buying a new answering machine every 6 or 7 months.
- Do the same if you have cable TV. Find out how much the basic service costs. Consider how much you’re paying for premium channels. Or consider the difference in cost between low and high speed internet access.
- Save money by eating out less frequently and shopping for food instead. Eating at home is more nutritious too. See Nutritious Recipes and Shopping for Groceries on our site for tips.
- Don’t use a credit card unless you know you can pay the bill at the end of the month. Credit card interest rates are incredibly high (currently around 20% on unpaid balances) and interest charges can add up rapidly.
Here is a selection of budget categories posted on Wikipedia under “personal budget.” For more information, check out the Personal Budget page of Wikipedia.
- Housing
- Food
- Automobile
- Insurance
- Debt Repayment
- Entertainment and Recreation
- Clothing
- Grooming
- Savings
- Medical/Dental
- Miscellaneous
- School/Childcare