Are you a spender or a saver?

You've either got it or you don't: Money that is. Savers have money on hand to buy the things they need while chronic spenders can get left without cash in the bank at crucial times. In an unsteady economy, being a saver (or even a savvy spender) can help you sleep at night knowing there's money in the bank to help you through a rainy day or two. Take this quiz and see which one you are

By Caroline Cakebread

Updated November 2, 2012

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Question of 7

1. You’re thinking of taking a cab home â your bank’s ATM is a block away but there’s one in the convenience store right where you’re standing. You:

	Use the ATM at the convenience store (hey – it’s closer to your house so the cab will cost less, right?)
	Walk down the block and go to your own machine
	Don’t worry because you already have enough money in your wallet to cover your expenses for the week;

Tip:
Avoiding frequent ATM use to pay for one-off purchases is a good idea since they cost money to use. Instead, take out enough cash at the beginning of the week to cover expenses and incidentals and you can avoid the fees. If you do need to use an ATM, make sure it’s your own bank’s – service charges at other machines can be sky high (over 6 bucks at some for just one transaction!).

2. Your roof is leaking and you need $10,000 to replace it. You:

	Take money out of the emergency fund in your savings account (you have a stash saved for a rainy day).
	Use your line of credit.
	Pull the money out of your RRSP or other retirement savings investments.
	Put pots under the leaky spots and go shopping for a new Burberry rain slicker.

Tip:
Be prepared – it’s not just a motto for scouts. It will also serve you well in your finances. Experts say you should have about six months of living expenses saved up to cover job loss or another type of emergency just in case. Make sure you don’t leave yourself without a cushion.

When your bills come in, you:

	Pay them in full right away.
	Pay the minimum balance and leave the rest for next month.
	Check the balance on your line of credit to see which ones you can afford to cover.
	Hide them all in a drawer with last month's.

Tip:
Not paying your bills on time can affect your credit rating. Make sure you pay them when they come in and in full. If you can’t afford to pay your credit cards off each month, then you need to curb your spending. Those Jimmy Choos might have been a steal at 30% off, but if you are paying high interest rates to carry a balance on your credit card to pay for them then you’re ripping yourself off.

4. You’ve just fallen in love with a gorgeous designer coat you saw for $2500. You:

	Don’t have that much in the bank, but you put it on your Visa and worry about it next month;
	Walk away so you can âcool offâ for a few days and think about whether it’s something you really need and can afford;
	Go online to see if you can get it for a better price elsewhere.

Tip:
When you’re thinking of buying a big ticket item, make sure you take the time to think about whether it’s a need or a want, especially if you are on a budget. If you decide you can afford it and still want to have it, then do some comparison shopping to see if you can get it at a better price. Shopping around can pay off.

5. Before going grocery shopping, I:

	Make a list so I know exactly what I’ll need for the week.
	Think about what I need for the meal I’m about to cook â I shop almost every day anyway.
	Who needs groceries? That’s what restaurants and dialing are for...

Tip:
Meal planning and restricting your shopping trips to weekly events can help you save money. A list will keep you focused and help you reduce your chances of walking out with bags full of stuff you don’t need.

6. When your monthly bank statement arrives you:

	Wonder where all your money went;
	Read it carefully and check to see that your bank fees and charges are in check;
	Know what your balance is within $100 or so;
	Don’t bother to look at it and toss it in the garbage.

Tip:
You should always have a sense of how much money you have in your chequing and savings account. Even if you’re sure you know how much is in there, you should check all the charges on your statement so you know what your bank is charging you.

7. When asked what interest rate I’m getting on my bank savings account, I:

	Know how much it is and am comfortable with how it compares to rates at other banks;
	Say I have no idea;
	Say it’s low but just figure that’s how things are so haven’t bothered to look elsewhere.

Tip:
The interest rate on a standard savings account at some banks is painfully low –you might be able to do better. These days, it pays to look around for competitive interest rates – not just on your savings account but with your credit cards, mortgage etc.

You are a Spender

When you want it, you’ve got to have it. Whether it’s cash or plastic, you like to spend money. It’s all good if you have lots of money to burn, but if you’re like most people your lack of budgeting know how and spending savvy is going to land you in trouble soon. If you’ve been hiding the bills and letting your debts mount up, consider getting some advice – Credit Canada is a good place to start to deal with debt. If your budget is balanced but you can’t seem to save a dime, then consider getting some help from a financial planner. Or make a budget and track your spending – writing down what you spend money on week to week can show you tons of areas to cut back. That’s money you can put right back into your own pocket.

You are a Saver

When it comes to spending you show restraint and you pay your bills on time. Keep on this path and you’ll maintain your financial fitness for the long-term – and unlike many people, you’ll sleep better at night knowing that your money is secure and stable.