Methods of Payment
A card issued by the bank that allows the holder to transfer money electronically to another account when making a purchase.
Debit Card
An agreement between a buyer and seller to exchange goods or services (including for money).
Transaction.
Money paid regularly at a particular rate for the use of money lent.
Interest.
What are the four main categories of financial goals?
Earning, Saving, Investing, and Donating.
The transfer of goods or services, often for money, from one individual or organization to another.
Trading
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 financial institution that accepts deposits from the public.
A Bank.
A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
A Loan.
An objective that a person sets that affects how they spend or save money. Objectives can be short-term (e.g., buying a computer) or long-term (e.g., saving up for college/university).
Financial Goal
What are two benefits of financial literacy?
Less debt, higher net worth, less financial struggle, improved household finances.
Aran really wants the new PS5, which costs $500. Aran has $200 in his Bank of Walsh. 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.
Where you should go to open a savings account?
A Financial Institution.
The original amount of money that the interest rate applies to
The Principal
If you make $500 each week and there are 4 weeks in the month, how much do you earn each month? Your expenses are $1300 each month. How much does this leave you for additional spending or to put into savings?
$500 X 4 = $2000
$2000 - 1300 = $700
I have $700 remaining for additional spending or to put into savings.
The money that you earn is called
Income
A card issued by a financial institution that allows a cardholder to obtain funds to buy things. Cardholders must pay back the money borrowed, plus interest, by a certain date.
A Credit Card
Name 3 banking institutions in your neighbourhood.
Answers will vary. TD, CIBC, BMO, etc.
If you are investing, it's better to have a _______ interest rate. If your are borrowing, it's better to have a _______ interest rate.
higher;lower
1) Money that we receive in exchange for work or investments.
2) Things that one spends money on.
3) An estimate or plan to manage income and expenses over a set period.
1) Income
2) Expenses
3) Budget
Name three factors to consider when selecting a future career.
income, skills needed (education), and job preference/interest.
What should your credit card balance be by the end of the month?
$0.00
What is the difference between a commercial bank, a retail bank, and a credit union?
Commercial bank- provides financial services for businesses
Retail bank- provides financial services for individuals
Credit union- a financial institution that is owned and controlled by its members
The average interest rate on a credit card is
19%
List three factors that could affect someone's financial goal.
Changes in incomes, expenses, priorities, health, personal and family situation etc.
True or False: When your credit history is good, lenders are less likely to loan you money.
False. They would be more likely to loan you money.