Income
Define gross income and net income.
Gross - total pay. Net - pay remaining after deductions.
What are the two categories of expenses on a budget sheet?
Fixed Expenses (e.g., rent) and Variable Expenses (e.g., clothing)
Name three types of banking financial institutions.
Banks, Credit Unions, Trust Companies.
Name three advantages of using a credit card.
Don't need to wait to accumulate savings. Can carry less cash. Need for on-line purchases/to rent a hotel. Build a credit rating. More convenient than cheques.
By law, cars in BC require __________ Automobile Insurance.
Basic
What do the terms "surplus" and "deficit" mean when used in relationship to a budget?
Surplus - income greater than expenses. Deficit - expenses greater than income.
A high expected return = a ________ risk.
high
Savings pays interest, permits limited number of transactions. Chequing pays little to no interest, for frequent transactions, can write cheques, charges fees.
To avoid paying interest on a credit card, you must pay the balance in full by the ________ ________.
Money the insured pays for their insurance contract.
Premium
Income Tax. Employment Insurance. Canada Pension Plan. Union Dues. Medical Plan. Life/Disability Insurance.
What type of interest do banks use? (It pays interest on the initial deposit and on any interest earned.)
Compound Interest
Name three ways in which a person can conduct their banking.
Legitimate lenders will always check your _______ ________ before approving a loan.
credit rating
A type of insurance that pays compensation to injured persons.
Third-party liability.
Every Canadian is permitted a _________ Personal ____________ for which they pay no taxes.
Basic Personal Amount
Explain the three categories in the 1-2-3 priority system of needs/wants.
1 - Essential. 2 - Important. 3 - Not Essential or Important.
Name three tips for safe usage of mobile app-based banking.
Strong password. Change password often. Don't use public WiFi. Update app. Log out of app when not using. Use two-factor authentication.
A __________ payment plan allows you to pay the cost for a purchase in installments over time, with interest.
deferred
Optional insurance for theft, vandalism, or fire damage to a vehicle.
Comprehensive Coverage
Name three registered tax plans used to temporarily shelter income from taxes.
TFSA. RRSP. RESP. RDSP.
Name three low-risk ways your savings can earn money.
GIC - Guaranteed Investment Certificate, a Term Deposit, a Canada Savings bond
What is the name of the deposit insurance system that guarantees protection of $100,000 per depositor at a bank?
CDIC - Canada Deposit Insurance Corporation
When you compare interest rates of credit cards, look at the __ __ __, which is used to determine your interest rate.
APR (Annual Percentage Rate)
Name three potential consequences of making a false insurance claim.
Coverage is cancelled. Insured can be fined, jailed, sued and receive a criminal record. Cost of insurance goes up for all.