Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
What are the benefits of financial literacy?
Less debt, higher net worth, less financial struggle, improved household finances
An objective that a person sets affects how they save and spend money. Objectives can be short-term (e.g., buying a computer) or long-term (e.g., saving up for college/university).
A tool you can use to track your income, expenses, and savings.
Budget
Money that is borrowed and is expected to be paid back in interest.
A Loan
An agreement between a buyer and seller to exchange goods or services (including for money).
What does HST stand for? What is the HST rate in Ontario?
HST - Harmonized Sales Tax
Rate - 13%
The ability to understand and effectively use a variety of strategies, like budgeting, to meet financial goals.
Financial Literacy
A card issued by the bank that allows the owner to transfer money electronically to another store or account when making a purchase.
Debit Card
Name 2 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals
Aran really wants the new PS5, which costs $500. Aran has $200.00 in his Bank of Walsh. However, he just received a credit card with a $1000 limit. Should Aran use his credit card to buy a PS5? Why or why not?
NO! Aran should not use his credit card because he does not have enough money in his checking account to pay off his credit card bill. He will end up paying interest on the outstanding balance owing on his credit card.
Money paid regularly at a particular rate for the use of money lent.
Interest
I have enough money to pay the balance of my credit card, but I just pay the minimum monthly payment. Is that the best financial decision? True or False
False
Paying the minimum amount is not the best decision. A person is charged interest when their credit card balance is not at 0 by the end of the month.
What are three ways that we can earn money?
Answers will vary: helping parents with chores, dog walking, birthday cards, helping with yard work, garage sale, part time jobs, etc.
Name 3 banking institutions in your neighbourhood.
Answers will vary. TD, CIBC, RBC, Scotia Bank, BMO, Simplii etc.
Modern form of payment that involves tapping a smartphone or smartwatch with bank cards or accounts attached via an app.
Electronic/Digital Wallet
CIBC gives $10 000 to Gabrielle for her student loan to study Electrical Engineering at the University of Ottawa.
In this situation, who is the lender and who is the borrower?
CIBC is the lender
Gabrielle is the borrower
Suppose you have $100 dollars in a savings account earning 2% interest a year. After 5 years, how much money would you have?
A. More than $102
B. Exactly $102
C. Less than $102
A. More than $102
$100x.02x5=$10
What should your credit card balance be by the end of the month?
It should be $0.00 by the end of the month.
The term for the current value of any currency in exchange for another currency
Exchange Rate