Credit Products and Terms
This is the specific maximum amount of money you are allowed to borrow on a credit card.
What is the Credit Limit?
This allows you to borrow money with an agreement to repay it later, which is important for building your credit history.
What is credit?
This is the type of interest where you earn a return on both your initial principal and on the interest you've already accumulated.
What is compound interest?
This is defined as the ability to understand and manage your money effectively, including budgeting, saving, and investing.
What is financial literacy?
This hands-on, trade-focused training program is described as having minimal tuition costs.
What is an apprenticeship?
This term refers to the initial amount of money borrowed, before any interest has been added.
What is the Principal?
This is the cost of borrowing money, usually expressed as an Annual Percentage Rate (APR).
What is the interest rate?
This investment option is considered low risk and offers a fixed interest rate for a specific period of time.
What is a Guaranteed Investment Certificate (GIC)?
These are the expenses you need for survival and basic function, such as food, shelter, and basic clothing.
What are needs?
This provincial program, a key source of financial aid in Ontario, stands for the Ontario Student Assistance Program.
What is OSAP?
This type of credit is typically used to pay for education costs and generally has lower interest rates than a credit card.
What is a Student Loan?
This numerical measure is a snapshot of your credit history and directly affects your ability to borrow in the future.
What is a credit score?
The key difference between these two is that one is low-risk and easily accessible, while the other is higher risk and focused on long-term growth.
What is the difference between saving and investing?
Saving for a new phone or a trip within the next year is an example of this type of financial goal.
What is a short-term financial goal?
This financial award is typically given based on financial need, rather than strictly on academic merit.
What is a bursary?
This is the security or asset (like a house or car) a borrower offers to guarantee the repayment of a secured loan.
What is Collateral?
Lenders use this ratio to determine your ability to manage monthly payments by comparing the money you owe to the money you earn.
What is the Debt-to-Income Ratio?
This type of investment pools money from many investors to buy a diversified mix of stocks and bonds.
What is a mutual fund?
Saving for college tuition or purchasing a home are examples of this type of financial goal.
What is a long-term financial goal?
This type of post-secondary institution typically has lower costs, shorter programs, and more technical training compared to university.
What is a college?
This form of revolving credit allows a borrower to access funds as needed up to a certain limit and is often associated with a variable interest rate.
What is a Line of Credit?
This is the smallest amount you must pay on a credit card statement to avoid late fees and penalties, though you should aim to pay the full balance.
What is the minimum payment?
This registered account allows tax-deductible contributions and tax-free withdrawals for a qualifying first home.
What is the First Home Savings Account (FHSA)?
Understanding your needs and wants is essential to avoid this, which is a key benefit of financial literacy.
What is overspending?
One of the biggest financial differences when comparing living in a city to living at home is the cost of this.
What is rent / living expenses?