Banking accounts
what’s the difference between a chequing and savings account
A chequing account is used for daily transactions, while a savings account is used for long-term saving while earning interest
what is a credit score?
a number that represents someone’s credit worthiness based on their credit history, ranges from 300-850
what is a stock/share?
a portion of ownership in a company
What are the two types of taxes?
Direct and indirect
Name 1 way that scammers can steal your information and money
Phishing, hacking, infecting, using deceptive emails or text messages
name 3 types of chequing accounts
any 3 from joint, traditional, online, term, business
list 2 ways to improve your credit score
paying on time, using credit wisely, keeping your account open for a long time
what is a bond
the most common debt asset
Name 2 types of indirect taxes
Sales tax, duties, property tax
Name 2 indicators of a secure website
https://, the lock, the website URL matches the official one
name 1 pro and con for chequing accounts and 1 pro and con for savings accounts
chequing: pros - unlimited transactions, easy access, spending trackers / cons - minimal to no interest, monthly fees, some require minimum balance in account .
savings: pros - CDIC insured, low risk, doesn’t require big initial investment, exponentially grows money/ cons - limits on withdrawal times/amount, may require a minimum balance, lower interest rates compared to other investment types
list 1 example of good debt and 1 of bad debt
good: lower interest rates that grow in value over time - mortgage, business, school loans, bad: higher in interest debt, not baked by value increasing assets - car loans, credit cards, store credit, cash advance
What is a derivative
a financial contract that derives value from an underlying asset
Name 4 factors that are considered in deciding individuals’ taxes
Marital status, employment status, age, physical ability, caregiver status
What is tax identity theft?
When your personal information and social security number is used to file fraudulent tax returns or claim tax benefit in your name
name 3 types of savings accounts
traditional , hysa, student savings account, money market, certificate of deposit
what is the 50/30/20 plan
50% necessities, 30% wants, 20% needs
What is a stock exchange
A place where individuals and firms trade shares
Name 4 types of tax shelters
RRSP, Roth IRA, TFSA, RESP, charitable donations, student loan interest deductions, mortgage interest deductions
Name 4 types of fraud
Tax fraud, credit card fraud, wire fraud, security fraud, bankruptcy fraud, insurance fraud
what is CDIC
the canadian deposit insurance corporation is government insurance that protects your savings account up to a certain amount if your bank goes bankrupt
name 2 types of debt plans
50/30/20, snowball method, debt consolidation, debt avalanche
What is an ETF
A pooled investment that can be bought and sold like an individual stock
What day is the tax filing deadline for Canadians?
April 30
How can fraud and identity theft harm you beyond losing your money/identity or needing to set up new accounts?
Can harm credit rating