Saving
This type of savings account provides a better rate of return than a regular savings account
High-interest savings
What is the "return" on an investment?
In a loan, what is the "principle"?
The original amount of money borrowed, before interest is added to the loan debt.
What is "gross income"?
The total amount of income you earn before taxes and deductions.
What does SIN stand for?
How many months of living expenses should an emergency fund have?
3-6 months
What does the term "registered" mean in Registered Retirement/Education Savings Plan?
It means the account and its activity are registered with and reported to the CRA to ensure that the account follows laws governing tax-free investing.
This term means "an amount of money charged to the borrower in exchange for being allowed to borrow money."
What is the difference between a wage and a salary?
A wage is a set amount paid hourly. A salary is a set amount paid annually regardless of the hours of work.
Which of these payment methods is most secure?
a) Credit card
b) Cash
c) Bank draft
d) Cheque
c) Bank draft
This term describes the behaviour of regularly saving money as a priority, not as an afterthought
Savings mindset
What does the phrase "buy the dip" mean?
It means to buy stock when the price is low, in order to make money by selling after the price rises.
Of these three loan products, which one is likely to have the highest interest rate?
a) Mortgage
b) Credit card
c) Line of credit
b) Credit card
Name any two mandatory deductions that will be taken from a wage or salary.
EI (employment insurance), CPP (Canada Pension Plan), provincial taxes, federal taxes.
Identity fraud
What does TFSA stand for and what does it mean?
Tax-Free Savings Account - money is taxed before going in, but the growth is tax-free
What is a mutual fund?
A fund in which investors' money is pooled together (held "mutually") and then invested by a fund manager.
If a person has a credit score of 500, is that good or bad?
Bonus: What is the range of possible credit scores?
It's middle of the range, but not good.
Bonus: 300 - 900.
b) After 40 hours of work in a week
What is "skimming"?
A device hidden on or in an ATM or credit card machine that steals your card information when you use it
What is regular interval saving?
What is an index fund?
A fund that allows buyers to purchase tiny micro-shares of the biggest stocks in the market, so their fund essentially follow the market's trends.
What's the difference between a soft and a hard credit check?
A hard check is performed when you are actively looking to borrow money; it is recorded on your credit report and lowers your score slightly. A soft check is not related to active borrowing, is recorded on your credit report for less time, is not visible to lenders, and does not impact your credit score.
In what circumstance can a business pay someone less than minimum wage?
When they receive a "tipped wage" (only in certain jobs where tips are expected, such as servers; and only in Quebec).
Name any person or organization it's safe and expected to provide your SIN to.
Banks, government agencies such as the CRA, with an employer AFTER a job offer