Summer is a great time to build confidence with money. Whether you're earning your first paycheque, saving for something special, or just learning a little morea about banking, Bright Start Summer is here to help.
Throughout July and August we'll be sharing:
Follow us on TikTok and Instagram to join the fun!
A Bright Start Account is designed for youth ages 0-24 and gives young savers a great place to start building healthy financial habits.
The monthly maintenance fee is waived, so you can focus on saving, spending, and reaching your goals.
Whether it's your first account or your first paycheque, our team is here to answer questions and help you feel confident managing your money.
Check your balance, transfer money, and manage your account with online and mobile banking. Perfect for busy students and young savers.
Learn more about the topics we have mentioned in our Bright Start Minute videos + more! Check back often as these will be updated throughout the summer.
What is Compound Interest?
Compound interest is when your money earns interest, and then that interest starts earning interest too.
Think back to the marshmallows from our Bright Start Minute. Your first marshmallow represents the money you save. After awhile, you earn another marshmallow, that's your interest. The next time interest is added, you earn it on both marshmallows, not just the first one. Before long, your pile starts growing faster and faster.
It's often called 'interest on your interest', and it's one of the easiest ways to help your savings grow over time.
Why It Matters
The sooner you start saving, the more time compound interest has to work its magic. Even small amounts saved regularly can grow into something much bigger over the years.
What is the 50/32/20 Rule?
The 50/30/20 rule is a simple way to help you decide where your money should go. The idea is to divide your take-home income into three categories:
50% Needs- These are the things you need to pay for, such as rent, groceries, transportation, your phone bill, insurance or other essential expenses.
30% Wants- This is the fun stuff! Eating out, entertainment, shopping, subscriptions, hobbies and other things you enjoy but don't necessarily need.
20% Savings/Financial Goals- This portion goes toward your future. It could mean building an emergency fund, saving for a car or your first home, investing, or making extra payments toward debt.
Why It Matters
The rule gives your money a purpose. Instead of spending first and hoping there's something left to save, your're thinking about your needs, your wants and your future.
And remember, this is a guideline. Your budget may not fit perfectly into the 50/30/20, especially when you're just starting out. That's okay! Even if you can't save the full 20% right now, getting into the habit of setting something aside is a great place to start.
A credit score is a number that helps show how you've managed credit and borrowed money in the past. Lenders may use your credit score and credit history when deciding whether to lend you money.
You may not have a credit score yet and that's okay! Your credit history begins to build as you start using different types of credit.
The way you manage credit can have an impact on your score.
Pay on time. Making your payments by their due dates can help build a positive credit history. Late or missed payments can hurt your score.
Keep your balances manageable. How much of your available credit you're using matters too. Regularly carrying balances close to your credit limit can negatively affect your score.
Apply for credit carefully. Applying for several new credit products within a short period of time can also impact your score.
Your credit score can become important when you're ready to borrow money for some of life's bigger purchases, like your first vehicle or, someday, a home.
Building good credit takes time. Starting with good habits and learning how to manage credit responsibly can help set you up for the future.
