Borrowing money
Some people visit the bank to find out if the bank will loan them money. They agree to pay the bank interest in exchange for the money borrowed. Credit cards are another way for people to borrow money. You buy things from stores and charge them on the credit card. Each month, the bank will send you a statement telling you how much money you owe them. If you pay the whole bill right away, the loan won't cost you anything. If you don't, the bank that gave you the credit card will charge you interest on the loan.
Investing money
Have you ever heard someone say you have to spend money to make money? Basically that is what investing is all about. Investments are great ways to help your savings grow even faster. GICs, mutual funds, bonds, stocks and savings accounts are just some examples of investments.
GICs are a safe way to help your money grow
Guaranteed Investment Certificates, or GICs, are similar to bonds. You agree to invest your money for a set period of time, and you get a guaranteed rate of return. Then, when you cash the investment in you will get back your original investment plus the interest that you earned on the GIC. GICs are good and safe investments for people who don't want to risk their money and who want guaranteed growth.
Mutual funds
Mutual funds are different than GICs because: