Financial Literacy
This tool helps you track your income and expenses so you don't overspend.
Budget
This type of card allows you to borrow money from a financial institution to buy goods or services, and repay it later, often with high interest.
Credit Card
This is the term for the process of buying and selling assets like stocks, bonds, or real estate to make a profit.
Investing
This type of savings account offers a guaranteed rate of return and a fixed investment period.
GIC (Guaranteed Investment Certificate)
This is the possibility of losing money on an investment or financial decision.
Risk
This financial term refers to the process of setting aside money for future needs, including savings for emergencies, retirement, and large purchases.
Saving
This is the amount you must pay on top of the original price of an item when borrowing money.
Interest
If you put money into this type of account, you can earn interest and withdraw the money anytime without penalty, but the interest rates tend to be low.
Savings Account
This tool helps you save for emergencies, unexpected costs, or big purchases by setting aside money regularly.
Emergency Fund
This type of loan is typically small and due for repayment by your next paycheck, but can come with very high interest rates.
Payday Loan
This is something essential for survival, such as food, shelter, and clothing.
Needs
This score helps lenders decide whether you’re a good candidate to lend money.
Credit Score
This type of investment allows you to buy a share of a company, and you may receive dividends if the company performs well.
Stocks
This is the Canadian government program that provides monthly income to people over 65, based on residency.
Old Age Security (OAS)
This pension plan allows workers to save for retirement through payroll deductions, providing guaranteed income when they retire.
Canadian Pension Plan (CPP)
This is money that you spend on daily needs such as food, housing, and transportation
Living expenses
This is the interest rate that remains the same for the life of a loan or credit card.
Fixed Interest Rate
This is a strategy where you invest in a mix of stocks, bonds, and other assets to reduce risk and increase long-term growth.
Diversification
This account helps you save for short-term goals, like a vacation or a new phone, and is not taxed on earnings.
Tax-Free Savings Account (TFSA)
Payday loans are often considered a bad choice. Why?
High fees and interest rates
This is the amount of money you have left after taxes are deducted from your paycheck.
Net income
When you borrow money to buy a car, the car itself serves as this.
Collatoral
This retirement savings plan allows you to reduce your taxable income while saving for the future.
Registered Retirement Savings Plan (RRSP)
This financial tool allows you to borrow money to buy a home, with the understanding that the home is collateral.
Mortgage
If you don’t pay back a secured loan, the lender has the right to take this action to recover the money.
Seize the collateral!