Banking
Primary difference between uses of a checkings and savings account
Checkings - Everyday purchases bills etc.
Savings - Keep money here for security and big purchases, also gain interest on this money
What is typically a persons most important investment?
Their home
Give a example of a product or service that often has "hidden fees"
Answers vary
What is the Old Age Security program?
When you are 62 you receive payments from of the government
A student can claim unemployment
False
How is money in your savings account "security?"
A emergency fund will protect you from sudden emergencies in life
Define Pension
What are hidden fees?
Fees that are often overlooked or not included in a price
Define "Mortgage"
Payments with interest towards owning a house (typically)
List three long-term goals
Varied answers
What percent of the total cost of a house do people typically put down for a mortgage?
10-20%
What percent of your income should you attempt to save per month?
Why is knowing or having your sin card important?
Your government number that allows you to take out loans, use medical services, and other important services
Define "Principal"
The sum deposited in the bank
What is a "First Time Homeowner Loan?"
If the buyer wants they only have to put down 3% for their first house
This historical event caused the "Great Depression"
What is a Group RRSP?
A retirement plan were your employer typically matches your contribution into a investment portfolio
Define direct deposit
Pay cheque goes directly to your bank account
What is a "work credit"
How do you calculate your network?
Assets + Equity - Liabilities = Net worth
Explain the difference between a bank and credit union
Banks
-For profit businesses
-More services
Credit Union
-Non-profit
-Less ervices
What is a Individual RRSP plan?
A retirement investment plan which you typically open at the bank. No employer matches and pre-tax benefits
What typically happens before the government creates a new economic agency
Decline in the economy
Define "Compounding Interest"
Interest being earned on top of past interest and the principal
Which budgeting rule did we go over in class?
60 Needs
30 Savings
10 Wants