How to Start a Bank Account

My dear Thinette,

Thinette with glasses

How to Start a Bank Account and manage my money? Opening your own bank account is your first step to independence. Walking around with all your cash is not safe, it is convenient to have a bank account where you put your money and then do your payments with a card.

If you earn a salary, arrange for your money to be paid in directly into your account. No need to handle the cash and the same goes for an allowance or a grant.

How Can I Help You

How to Start a Bank Account

You have control over your Net Income. Let me explain, Gross income is the amount of money you have agreed upon when taking the position. Your Net Income is the amount of money the company or person is paying into your bank account after compulsory deductions from the Gross income.

In other words, your Taxes, Workman’s Compensation and contribution to a pension fund of the company get deducted. The balance is called your Net income.

Select the types of accounts you will need. Normally there are two types when you are single, it is a cheque account and a savings account.

I would recommend you open a third account, my dear. This is the money you can spend as you wish with no guilt.

  • Cheque account for all your fixed payment that is part of your responsibilities every month, food, a roof over your head, electricity bill, etc.


  • Savings account is money put away for a specific purpose to enhance your life, eg. a new fridge, a holiday, etc.

How to start a Bank Account Money, Grow, Interest, Save, Invest, Shares, Funds


  • Splash account is an account with a fixed amount of money paid to yourself to spend as you wish. This is your no-guilt account. Let the amount stand over for a month or two if you want something really special. Spoil yourself with luxury but don’t go overboard, stay within your limits, my dear.


Your Budget

First of all, create a budget that suits your lifestyle and needs.

Take your Net income and divide it into percentages of spending. It sounds like hard work but it is the only way to keep track of and successfully manage your hard-earned money. Once you have mastered it you will remember the amounts in question.

I came across this excellent breakdown on the site of My Money Coach, the image is below, it is self-explanatory and helps you to see your budget in perspective.


t a bank account Man busy typing on the laptop with cell phone next to it


Your biggest payout will be for housing and transport. Make sure you live within your limits. No need for a big house or flat or a flashy car.

Photo of my parents Willie and Mien KokYour Granddad and Grandma

Start being conservative and slowly grow into your dream. Your Granddad used to say, if you are not careful and look after your spending you will end up as a slave to other people or companies and you sit with nothing.

How to Start a Bank Account

We are going to try and break this down for you, my dear. How much to spend on what?

There is a kind of formula you have to work by, it can vary in different ways for different goals, let’s see if this can help you.


Estimate expenses as a percentage of your income advice by My Money Coach:

Take your income after taxes, in other words, the money that is paid into your account. Divide that amount into this circle with many slices.

– 35% for housing, rent or mortgage, taxes, insurance, etc

– 15 to 20% for transport including vehicle payment, fuel, insurance, maintenance, parking fees etc.

– 5% for Utilities, everyday living expenses, cell phone, Internet, electricity bill, etc.

– 3 to 5% for clothing.

– 10% for savings, in a separate account, it is still your money. but separate.

– 5% for personal money to spend as you wish, alcohol, tobacco, eating out, hair and nail care, hobbies, etc. This is not part of your grocery list.


Budgeting guidelines for the cost of living in Canada by category.

Loaned from My Money Coach

 Medical aid is not mentioned, decide on full medical aid or just a hospital plan. Pay attention to it and don’t neglect it. See what you can afford.

Try never to have accounts that need payments at the end of the month. Limit the payment to less the 0.5% of that section and only one account at a time.  It looks tempting to buy but is not worth it, my dear.

That is the quickest way to get stressed and filled with anxiety, and resentment to be way over your head into debt. You will have goods that you don’t really need and lots of guilt.


How to Start a Bank Account

This is just a guideline.

The best is to sit down take the total, calculate and divide your money into these percentages and then transfer it into the specific accounts.

Chances are good your money is not near enough. There are only two options, my dear. Number one is to accept it, lower your standards and live on the poverty line, or get out, better your skills and find a better job.

How to Start a Bank Account

Moving in

When you are a couple here is a different scenario, things change a bit. The percentage of spending with the joined income stays the same. Be wise and don’t go out and spend more because you think you have more.

The bank accounts just get duplicated to accommodate both. There will be more accounts, but for the same reasons.

It makes you feel safe.

There have to be joint accounts and separate accounts not to feel smothered or overwhelmed and making you unhappy.

Types of Accounts

1- A joined account in BOTH names and will need both to agree before a payout towards your living expenses can be made.


2- Savings account in BOTH names for when saving for a joint goal, either a holiday or an item for the house both will benefit from. Both have to agree before payment is made.


3- Personal savings account for HIM as his own personal savings account for whatever reason. No permission is needed for payouts.


4- Personal savings account and for HER as her own personal savings account for whatever reason. No permission is needed for payouts.


5- ‘Splash-spending-as-you-like’ account for HIM to fund his hobbies, to attend sports events with his friends or boys-out-fishing trip, gifts and personal treats. No permission is needed for payouts.

6- ‘Splash-spending-as-you-like’ account for HER to fund her hobbies, hair and nail treatments, coffee with friends, etc. No permission is needed for payouts.

Everybody feels secure and free when you give space. These are strict rules but make for happiness with no misunderstandings.



With modern technology, it is easy to create these accounts online. No need to stand in queues like in the old days, my dear.

When Mom was still young I used to draw all the cash and then divide it into marked envelopes. Later Dad made me a long small wooden box with compartments. and the money for different things was divided there.

What has not been spent that month would go into a savings account for all to benefit from. That inspired everybody to save. I kept it safe and was strict with the spending and dedicated to doing the best I can because I had to be careful to survive.

Get in the habit of using this system and you will live with no money-related stress and soon reach your goals. Discipline and dedication to a better life are so important.

Love you lots

Granny Stella

Gran Estelle

Be Fabulous, Feisty and Fearless.


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8 Comments on “How to Start a Bank Account”

  1. Hi Estelle, I love your article, HOW TO START A BANK ACCOUNT, in your Letters to your granddaughter. What an awesome idea. Wow, I wish I had received such good advice when I was starting out my independent life.
    I am now 75 years of age and still struggling with finances.
    Your granddaughter Im sure will live you for helping her in this way.
    She will be looking forward to future letters to help her in other areas of her young life I am sure.

    1. Hi Lett and William, thank you for stopping by.
      It is hard to get a message through to the young ones hahaha!

      Most of the time they know everything already, but do not have the experience of what works and what does not.
      Fresh out of school she did not read it but being a little older now it dawned on her she can learn from these letters.

      She is a lovely granddaughter with a loving personality and I hope this will inspire her to better her life.
      This is meant for all young ones starting their adult life.

      Kind regards

  2. How to start a bank account is one of the best things we could do for our children or even for us if we know how to manage money. Budgeting your money can determine how you live your life and with this article we understand the full fundamentals of what it takes.
    We are all ears when we see banks that offer interest if you bank with them called credit unions gaining interest as you sleep.


    1. Teaching your kids the value of money is so important. Be constantly aware of spending and why?
      Most of us got pocket money but only a few were taught how to manage it, that is such a pity.

      Money or the lack thereof contributes directly to our state of mind and happiness.
      There are times when credit is a benefit but only when you are in the market of investing for passive income but definitely not for everyday living.

      Thank you for stopping by and for your valuable comment, I appreciate it!

  3. Learning how to open a bank (savings) account and learning how to budget are very important things to learn. They are part of what some people know as financial literacy. Unfortunately, these are not topics I learned in school but had to learn the hard way through life experiences.

    I”m so glad you have an example of a budgeting breakdown in your article. It is so much easier to understand this way. And you are so right when you say discipline and dedication are important.

    I like the traditional way of opening a bank account and have my concerns about online/mobile banking. Technology has made it easier but it also comes with some risks in my opinion.

    1. Hi Dira, yes you can see I am old school and believe in pen and paper too.

      Have lost some info a few times with this new technology and learned the hard way.
      To have both, an online filing system and a file on your shelf behind you are ideal.

      Thank you for stopping by and for your valuable comment, I appreciate it very much.

  4. Teaching our children about finances at an early age is one of many steps to gaining financial independence for them. When they become adults, these teachings will never leave them because it has already become a part and parcel of them. I’ve seen a friend teach his kids the old style of saving which is the piggy bank. I find that really admirable. His kids have this little piggy bank where they throw in any cash given to them. At the end of the year, they count what’s in it and they’re amazed at how much they’ve saved. One rule of thumb to help with finances even as they become an adult is “always live within your means”. Even as parents, we need to constantly remind ourselves of that. It’s good to want to purchase the latest iPhone, or wear the latest designer clothes and shoes. However, what effect is it having on your finances? Luckily these days, there are a lot of fintech apps that help with savings and planning one’s expenditures so you know how much you’ve spent on what.


    1. Hi Femi, yes very true. We will have to decide what our relationship with money will be, a love or hate relationship, most of all it should be one of respect.

      There is nothing that can motivate you along the way.

      You make the decision and then be disciplined to live with it to reach your goal.
      The basis starts very young and then we live by example too. When of age a child should know what they want and where they go.

      The piggybank is a wonderful idea, it also teaches your child to be disciplined and not to touch that money until it is time. There is no mediocrity, it is a strict hard reality to live by.

      Thank you for a valuable comment I appreciate it!

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