Tuesday, January 11, 2011

Hey cashmart fans!
You're in for a real treat today! cashsmart, along with our good friends Andrew Walmsley and RJ Tripple, have come up with an AMAZING-BLOW-YOUR-SOCKS-OFF money game! go through life making money and not getting into debt. Let's see how much you've learned...

Tuesday, January 4, 2011

Who Needs Insurance?

Hello Everyone!

Insurance is one of those particularly vague financial concepts that don't get alot of attention. But we think that it's a very important topic for you to understand all about your finances, so we've simplified it for you!

What is insurance anyway? One source indicates that it is "a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages".

Some of you may not get that, so we'll give you an example. If you're a cyclist, you know there's a possibility that you might have a head injury from cycling down steep slopes, or even just down the street. So there's always this risk that you will be injured; even if the risk is small because you're a pretty good cyclist, the risk is still there. That's why most people wear helmets when they cycle, because helmets in this situation, act as insurance against a potential head injury.

In the same way, we pay insurance in order to offset future troubles we might have. Insurance helps to give us financial security. How does it do that?  When we contribute to an insurance plan, we’re safeguarding ourselves against possible emergencies that we may encounter in the future.

Let's use another example. Let's say, a family member suffered a debilitating disease and has to stay in the hospital for several months – at the very least. Hospital costs are incredibly expensive; who’s going to pay for the costs involved? If he/she has insurance, the insurance company may pay a portion of it, depending on your plan, thus taking off part of the burden of payment.

How about insurance in Ontario?

The Ontario law requires that all motorists have auto insurance, so that's one less thing to worry about.

The Ontario Health Insurance Plan (OHIP) pays for a wide range of health services; however, it does not pay for services that are not medically necessary, such as cosmetic surgery.

We hope this cleared up any confusion around insurance!
The cashsmart Team

What's the difference between a Chequing and a Savings account?

Hey Everyone!

Today we'll be talking about bank accounts - specifically, savings and checking accounts. At some point in life, everyone will have a bank account - and rightly so, because bank accounts are pretty useful. Here's why:

Savings Accounts
One main feature of a savings account is that you can earn interest on the funds in the account.
It is not usually used directly as money (eg. writing a check).

Chequing Accounts
Chequing accounts generally do not pay interest. If a bank does offer interest on a specific type of checking account, the rate is usually much smaller than one that can be earned on a savings account.

You can typically make unlimited withdrawals from a checking account, and you have the use of a debit card as well the ability to pay with personal checks.

We hope that cleared up the confusion over the two! 

Comment below!
The cashsmart Team