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).
Samrah pays for her book at the bookstore. She uses a card that can only be used at a specific store.
A gift card
A document that orders a financial institution to pay a specific amount from the issuer's account to the person or organization named.
A cheque
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
An agreement between a buyer and seller to exchange goods or services (including for money).
How much is sales tax?
Sales tax is 13% (0.13)
Poppy pays for a chocolate bar at the convenience store with cash. The chocolate bar costs $2.50. What is the total cost of the chocolate bar?
$2.50 x 0.13 = 0.33
$2.50+0.33 = 2.83
The total cost of the chocolate bar is $2.85.
1) Purchasing a new backpack for school (expense or income)
2) Getting a weekly $35 allowance for doing chores around the house (expense or income)
3) Buying Regino's pizza for $5.00 for lunch (expense or income)
1) expense
2) income
3) expense
A card issued by the bank that allows the holder to transfer money electronically to another account when making a purchase.
Debit Card
Name 2 methods of payment.
Ben really wants the new PS5, which costs $500. Ben has $200.00 in his bank account. However, he just received a credit card with a $1000 limit. Should Ben use his credit card to buy a PS5? Why or why not?
NO! Ben 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.
What can be done with your money? (hint - there are 4 ways)
Spend, Save, Invest, Donate
What do you call a budget where your expenses are not more than your income and it allows you to save money for future use?
A realistic budget
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 things taxes help pay for?
Hospitals, schools, public transit, libraries, roads etc.
Name 3 banking institutions in your neighborhood
TD, RBC, Scotiabank, BMO, HSBC, Bank Nationale
What is an estimate or plan to manage income and expenses over a set period?
A budget
1) Money that we receive in exchange for work or investments.
2) Things that one spends money on.
1) Income
2) Expenses
List examples of goods and services (3 examples for each category).
Goods are items that are usually (but not always) tangible.
Services are activities provided by other people.
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.
What do you need to consider when making a budget? (hint - there are 3 points)
1) How much we earn each week or month (income)
2) What are our expenses are
3) What we need and what we want
Name the different forms of taxes collected in Canada. (hint - there are 3 different types).
1) Income tax
2) Sales tax
3) Property tax