Debit
What is the main purpose of a debit card?
To pay for purchases or access money from a linked bank account.
What is income, and what are two common sources of it?
Income is money received from sources such as employment, self-employment, investments, or rental property.
What is gross income?
Income before deductions are taken off.
What is the difference between a debit card and a credit card?
Answer: A debit card generally uses money in your bank account, while a credit card lets you borrow money from a lender and repay it later.
What is the difference between earned income and passive income?
Earned income comes from working or providing services. Passive income can come from assets or activities that do not require continuous direct work, although they may still need management.
What is net income on a paycheque?
The amount of employment pay remaining after payroll deductions. It is often called take-home pay.
What is an overdraft, and how could it affect your bank balance?
An overdraft allows eligible transactions to exceed your available balance. It can create a negative balance and may involve fees or interest.
What is the difference between hourly wages and a salary?
Hourly wages depend on hours worked, while a salary is a set amount of pay for a period, commonly stated annually.
Name three common deductions from an employee's paycheque in Canada.
Income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums.
Why can a debit card transaction be declined even if you have money in your account?
The bank may flag the transaction for security, the card may be blocked or expired, the account may have spending limits, or some funds may be on hold.
What is the difference between gross employment income and taxable income in Canada?
Gross employment income is employment pay before deductions. Taxable income is the amount used to calculate income tax after applying permitted deductions and tax adjustments under the rules.
Why might two people with the same gross salary receive different net pay?
They may have different tax circumstances, benefit deductions, pension contributions, or other payroll deductions.
What is the difference between your account balance and your available balance?
The account balance reflects recorded transactions, while the available balance reflects money currently available to spend after considering applicable holds and pending transactions.
Why does earning a higher salary not always mean that someone has more money available to spend?
They may have higher taxes, other payroll deductions, greater living expenses, debt payments, or less predictable income.
What is the difference between net employment pay on a paycheque and net income on a Canadian income tax return?
Net employment pay is take-home pay after payroll deductions. Net income on a tax return is calculated using total income and permitted deductions under tax rules. It is not necessarily the amount deposited into someone's bank account.