Accounts
What is a savings account?
The account used to set aside earnings for larger purchases or emergencies
What is budgeting?
keeping track of where your money is going
What is a Debit Card?
A card that pays using money out of the card holder's checking account
What is entrepreneurship?
the activity of setting up a business or businesses, taking on financial risks in the hope of profit
Are scholarships mostly based on grades? If not, what else is considered?
no, they also consider:
- extracurriculars
- community work
- clubs
- performances
- work with youth organizations
- personality traits
- specific skills
What is a chequing account?
The account used for everyday purchases and transactions
What are investments and stocks?
Investments: the action or process of investing money for profit or material result
Stocks: A single share represents fractional ownership of the corporation in proportion to the total number of shares
What is the key difference between Credit and Debit cards?
credit cards use borrowed money from your bank vs. debit cards use money you already own that you deposited into your account
List a type of entrepreneurship
small business, scalable startup, large company, social entrepreneurship, etc.
List a type of loan and a reason why we have loans.
Types: Secured, Unsecured, Revolving, or Term Loans
Why?
Major purchases
Investments
Renovations
New business/entrepreneurship
Company expansion
Growth in economy’s money supply
Revenue for banks from interest and fees of loans
What is TFSA (Tax-Free Savings Account)?
TFSA: A Tax Free Savings Account that allows you to set money aside in investments and the savings grow from interest, dividends, and capital gains tax-free over time. You can also withdrawal money any time with no tax
What is commission on stocks and Exchange-Traded Funds (ETFs)?
Commission on stocks: the price you pay with the share price
Exchange-Traded Funds (ETFs): A collection of stocks or bonds that are bought within one price range
What is the better card - Credit or Debit and why?
Credit card: building credit score/credit history,
extra warranty and purchase, fraud protection, dispute
Why?: In the future, if you need to borrow money and take out a loan for a large purchase, the bank can determine whether or not to grant you the loan according to your credit score.
List three out of seven key concepts to having a great entrepreneurship
Perseverance, hard work, ability to take the risk, dynamism, creativity, innovative, self-confidence and the excellent time perception
What is Identity Theft and how do you protect yourself from it?
definition: a crime where your personal information such as your name, driver’s license, or SIN has been compromised
Store confidential information securely
Protect private documents
Logout of company accounts/devices when not in use
Be aware of online threats (eg. websites, malware)
Regularly get updates on accounts; spot unauthorized activity
What is the difference between RRSP (Registered Retirement Savings Plan) and RESP (Registered Education Savings Plan)?
RRSP: a plan that your spouse or partner contributes to; income earned in the RRSP is excluded from tax, but you have to pay tax when you receive payments
RESP: A Registered Education Savings Plan is used as a savings plan to help save for your child’s post secondary education. It is an investment that is made up of your earnings and government grants
What are the components of making a budgeting plan?
1. Gather all your financial paperwork
2. Calculate your income
3. Create a list of your monthly expenses
4. Determine your fixed and variable expenses
5. Total your monthly income and your expenses
6. Make changes to your expenses!
What is bad credit and how can you change your credit score? Why is it important to maintain good credit?
bad credit: 300 - 649
Stay on top of paying your bills and paying on time using your approved credit
Clean up your credit report
Pay twice a month
Increasing your credit limit
Opening a new account
Frequently contacting the credit bureau for a report to ensure that your good credit score is being maintained or increasing
Why?:
Building credit score/credit history
Extra warranties/insurance/purchase protections for purchases
Better fraud protection
Allows cardholders to dispute purchases lost in shipping, purchases that are damaged, or unauthorized purchases
Ability for banks to grant you loans when you need it
What are the 4 "P's"?
Place, Product, Price, Promotion
What is a mortgage and why do we have them?
Extra points if you can explain the process!
Definition: A loan used to buy or support a home/real estate property
why?
borrowers buy properties using mortgages to be able to pay for the purchase over time and not all up-front
(extra:
Borrower applies to one or multiple mortgage lenders (can apply before or after buying and lenders may allow a second mortgage/home equity loan after this primary mortgage) -> lender requires evidence that the borrower is able to repay the loan (bank/investment statements, credit check, tax returns, proof of employment, etc.) -> if approved, lender will propose a loan up to a particular amount and a particular interest rate -> after the buyer and seller have agreed, they/their reps will meet at a closing, where property ownership will be transferred to the buyer/borrower, seller will receive the money, and buyer will sign the last of the mortgage documents)