But when you're heading off to university, your more immediate need is understanding day-to-day personal finance. Chequing accounts. Books. Making money. You cannot avoid day-to-day finance. You can learn about it now, or wait until you make a mistake. We suggest now.

The first step is to open a bank account from which you pay your expenses and deposit your income. Without one, you'll have to carry all of your cash around with you or stuff it in your mattress, neither of which is a sound financial strategy. Bank accounts also help you track how much money you have.

So what type of account do you need? That depends on your situation.

Savings account
A savings account isn't the only account you'll need. But it is an essential part of short- and long-term financial planning. A savings account is an easy way to start accumulating some financial reserves. You won't earn much interest in one of these, but the money is readily available in case of a financial crisis. And it's safer than your mattress. While a savings account is just as accessible from an ATM as any other account, you might consider designating this a "hands-off" store of funds.

When selecting your savings account, ask the bank whether there is a minimum balance requirement or monthly fees. Paying large monthly fees is the opposite of saving money.

Chequing account
Your chequing account will be your workhorse. You'll make deposits that are intended to cover the costs of your daily expenses. You will typically be able to write cheques, withdraw money from an ATM and use a debit card with a chequing account.

Keep a record of all your transactions so that you know exactly how much money you have in your account. Banks can charge as much as $30 if you bounce a cheque.

You will receive a monthly statement that lists all of your transactions as well as your ending balance. Make sure your monthly statement matches your own list of transactions. You may catch mistakes that you made in recording your spending, or even a bank mistake. Click here for a detailed description of how to read your bank statement and reconcile your chequing account.