credit card
The major difference between a credit card and a debit card is that when someone uses a debit card…
They are using funds directly from their own bank account
What do you call am accumulated amount of savings?
Emergency fund
When should you invest?
The sooner the better. Time in the market is more important than timing the market. Don’t sit and wait. Jump right in.
What is the term used when you spend more than you earned or planned?
Overspending
Money doesn’t last forever, but some dollar bills have a longer life cycle than others. Take a guess on how long a $100 bill lasts.
15 years
True or false. Credit cards usually charge a higher interest rate than other types of loan.
True
What percentage of your income should go towards savings?
10-20%
What is a stock?
A share in ownership of a company, including claim on the companies earnings and assets. When the value of the business rises so does the stock and vice versa.
To start saving, the article suggests tracking these to see where money is going.
Expenses
What percent of households have less than $1000 in savings.p?
69%
What do you call the three digit number that summarizes one’s creditworthiness and attempts to measure how well a person handles debt? (The higher, the better.)
Credit score
Why is it important to make a budget?
Helps you plan your spending and for emergencies.
What is diversification?
A mix of different types of investments. Lowers risk by spreading money across different asset classes.
Creating these early in life can help you achieve long term goals like buying a house or car.
Financial goals
What percent of canadians have a budget?
49%
What is it called when you can piggyback on your parents’ credit and build your credit score to increase your odds of getting approved for your own credit?
Authorized User
True or false. There is no limit to how much you can put into an RRSP.
False. 18% with some exceptions.
Trure or false. Interest is always a bad thing.
False!
yeah, this is an alternative to credit cards that has a lower interest rate and is used for emergencies
Line of credit
What is the interest rate set to by the bank of canada?
3.75%
What happens if you don’t make the minimum payment on your credit card each month?
You could be hit with late fees, increased interest rate or lower credit score
Fact check: at age 60, you must withdraw your investments from your TFSA.
No, there is no age limit on when yo need to withdraw funds.
If you are borrowing money and you want to know how much interest you will pay on it, look for the APR. What does APR stand for?
Annual percentage rate
One benefit of saving is being able to live below these.
Your means
Freebie! Whats your favourite Canadian currency?
Loonie, toonie, dime, nickel, quarter etc.