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).
Lauren pays for her book at the bookstore. She uses a card that can only be used at a specific store. What kind of card did she use?
A gift card
A paper document that orders a financial institution to pay a specific amount from the issuer's account to the person or organization named.
A check
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).
What does CPP stand for? What percentage of my income goes to CPP?
Canada Pension Plan - 5.9%
Bolin 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 + 5% GST and 7% PST
Total tax (12%): $2.50 × 0.12 = $0.30
Total price: $2.50 + $0.30 = $2.80
Expense or Income?
1) Purchasing a new backpack for school
2) Getting a weekly $35 allowance for doing chores around the house
3) Buying cafeteria pizza for $5.00 for lunch
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 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals
Aran really wants the new PS5, which costs $500. Aran has $200.00 in his Bank of Manitoba. However, he just received a credit card with a $1000 limit. Should Aran use his credit card to buy a PS5? Why or why not?
NO! Aran 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 are 3 parts of an application form (hint: there are more than 3!)?
Position you are applying for
Education
Work experience
References
Special Skills
Personal Information
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 taxes are taken out of my gross paycheck in Manitoba?
Federal Income Tax: 15-33%
Provincial Income Tax: 10-17%
Employment Insurance (EI): 1.66%
Canada Pension Plan: 5.95%
Name 3 banking institutions in your neighborhood.
Answers will vary. CIBC, Access Credit Union, Royal Bank
If you make $500 each week and there are 4 weeks in the month, what are your gross earnings each month?
$500 X 4 = $2000
Budget, Income or Expense?
1) Money that we receive in exchange for work or investments.
2) Things that you buy.
3) An estimate or plan to manage income and expenses over a set period.
1) Income
2) Expenses
3) Budget
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 at the end of the month?
It should be $0.00 at 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
When you pay a premium (monthly amount) into a fund to protect you from un expected high expenses, what is this called?
Insurance