Financial Concepts
What are the guiding principles that shape how someone handles money?
What are financial values?
This behavior involves setting aside money for future needs or emergencies.
What is saving?
What does TFSA stand for?
What is a Tax-Free Savings Account?
This family dynamic plays a big role in shaping one’s attitude toward money.
What is parenting style?
This term refers to the money you owe to others.
What is debt?
Name two examples of external pressures that can affect someone's financial choices.
*answers may vary*
Name the financial behavior that involves buying unnecessary items on a whim.
What is impulse buying / splurging?
Which financial product allows individuals to save for their first home while gaining tax benefits?
What is the First Home Savings Account (FHSA)?
Which factor refers to the influence of one’s financial decisions based on the people around them?
What is peer pressure?
This financial term refers to using your income to cover your expenses and save for the future.
What is budgeting?
This term refers to distinct patterns of behavior and attitudes toward money that people develop.
What are money personalities?
This term refers to the act of spending more money as your income increases.
What is lifestyle inflation?
This acronym stands for a retirement savings plan that offers tax benefits in Canada.
What is RRSP (Registered Retirement Savings Plan)?
These two personal factors can impact financial decisions due to feelings of insecurity or fear.
What are self-esteem and stress levels?
Define opportunity cost.
What is the value of the next best alternative given up when making a decision?
Explain the difference between financial behaviors and financial influences.
Behaviors = actions we take with money (e.g., saving, spending)
Financial Influences = external factors that affect those actions (e.g., culture, family)?
This behavior involves avoiding making financial decisions until the last minute.
What is financial procrastination?
Explain how a mortgage differs from a regular loan.
What is a mortgage being a long-term loan specifically used to purchase property?
How can technology influence spending behaviors?
Examples: online shopping, targeted ads, or easy access to credit?
This financial instrument allows you to borrow money up to a certain limit and pay it back later, usually with interest.
What is a credit card?
Reflect on how your family background or environment may shape your financial habits.
Answers will vary.
The behavior of spreading investments across different asset types to reduce risk is called what?
What is diversifying investments?
Match these financial products to their definitions: TFSA, FHSA, RRSP.
What are a tax-free savings account, a first home savings account, and a registered retirement savings plan?
500 Points: Name three life experiences that could influence someone's financial decisions.
EXAMPLES: past trauma, poverty, or economic status?
Explain the difference between equity and liquidating assets.
What is equity being ownership of an asset, and liquidating assets being converting them into cash?