Banking
Two of the factors people use when choosing a bank.
What are location, interest rates, or fees?
An attempt to anticipate income and expenses over recurring periods of time.
What is a budget?
This method of financing a vehicle allows you to use a vehicle for smaller payments than taking out a loan to buy it but also results in you never owning the vehicle
What is a lease?
This is what credit card companies charge for use of their money.
What are finance charges or interest?
The amount of money that must be paid on a credit card each month, in order to continue to use the credit card and maintain a good credit history (as long as you have a balance on the credit card.)
What is the minimum payment due?
A written request for your bank to pay another party from funds in your account.
What is a cheque?
The amount of money you get paid from your job, less the money deducted for taxes and other deductions such as extended health, uniforms and/or union dues.
What is net income or wages?
This amount of money represents the value the vehicle is worth when you give it back or buy it from the dealer once the lease is over.
What is end-of-lease value?
The best way to reduce your credit card debt.
What is pay more than the minimum payment required?
This is the best way to maintain an excellent credit rating.
What is pay your bills on time?
This should be performed monthly to ensure proper record keeping and help protect against identity theft.
What is a bank reconciliation?
Typically, most people list this expense as the first one to be paid.
What is rent or a mortgage payment?
The car payment you get from an online calculator typically does not include these.
What are insurance, licensing, delivery?
When possible, it is better to buy a home rather then rent because purchasing real estate is considered an investment. As you pay off your mortgage you build this.
What is equity?
When planning to pay off debt, the best plan is to begin by paying extra money each month to the creditor with this.
What is the debt with the highest interest rate?
The government agency that insures certain bank accounts in chartered banks.
Who is CDIC?
One must also budget for these when budgeting for the cost of housing.
What are utilities (Hydro, heat, water)?
When buying a vehicle, you are expected to pay this before you can drive off with the vehicle, unless a dealer promotion eliminates this.
What is a down payment?
Preferably, the only types of purchases that should be financed by debt are these.
What are large purchases (such as a house or car)?
Saving money for retirement is easier the earlier you start because this way of calculating interest allows you to earn interest on interest.
What is compounding or compound interest?
You pay two of these whenever you use an ATM that does not belong to the bank where you have your account.
What are ATM fees or service charges?
This will result if expenses exceed income in a given time frame.
What is borrowing money or debt?
The best way to reduce the amount of money spent on interest on a vehicle loan or lease, over the life of the loan or lease.
What is the shortest term you can afford?
Many employers provide these to provide employees with retirement income and help them reduce their taxes while they are working.
What is an RSP or RRSP?
Three of the factors that banks and credit card companies use to decide if you qualify for a loan or a credit card.
What are income, paying bills on time (credit history) and amount of debt you already have.