Glossary

ATM

Automated Teller Machine. Machines where, using a bank card, you can access your bank accounts to withdraw or deposit money, pay bills or transfer money between accounts.

Appreciate

To grow in value. Stocks, bonds, RRSPs and some assets, such as property, can increase over time. You may purchase a stock when it is valued at $5.00 per unit and over 3 years it can appreciate to be valued at $6.00 per unit.

Asset

In the financial world, an asset is something you own that has value. Money in your bank account is an asset, a house that you own is an asset.

Balance

The amount of money remaining in an account. In banking, your balance is what you have left after all deposit and withdrawal transactions have been processed. If you receive a bank statement your balance will be the money that is left in your account.

Bank Account

An account you have at the bank where you can deposit and/or withdraw money.

Bond

An investment that you can purchase from a bank, which will grow into more money based on an assigned interest rate.

Bounced cheque

A cheque the bank refuses to cash or pay because you don’t have enough money in your account to cover it.

Budget

A document used to organize and track income and expenses.

Career

A job or profession that someone does (usually for a long time).

Cheque

A piece of paper that you can use to give permission for a bank to give money from your bank account to someone else. You can use cheques instead of cash. Cheques are usually printed by your bank and you fill in the information about who you want to give the money to and how much money you want to give, and then sign it. The amount you write on the cheque is withdrawn from your account, by the bank, and given to the person/business to which you wrote the cheque.<

Chequing Account

An account you set up at the bank that allows you to transfer money to other people using cheques.

Child Tax Credit

A benefit received from the Government of Canada that provides financial assistance to help eligible families pay for some of the costs of raising their children who are under the age of 18.

Compound Interest

Interest that is paid on an original amount of money, as well as on the interest that money has already earned.

Consumer

A person who buys goods or services.

Credit

Money that a bank, business, or person allows someone else to use and then pay back in the future.

Credit Card

A card that represents a credit agreement. A bank or financial institution may give a credit card that can be used to pay for goods or services before the money is actually deposited in the account. The credit card owner agrees to pay back the borrowed money at a designated time. If full payment is not made on the payment date, interest will usually be charged.

Credit History

A record of how well someone has paid back their loans, bills or debts.

Credit Union

A financial institution similar to a bank and that provides many of the same services as a bank. Credit unions suggest they focus more on their members rather than profits and are an important contributor to their community.

Currency

Money that a country uses. In Canada, our currency is the Canadian dollar.

Currency Exchange Rate

The value of one country’s money when converting it to another country’s money.

Debit Card

A card issued by your bank that allows you direct access to your bank account. You can use your debit card to deposit or take money out of your account at an ATM. You can also use your card to make purchases at stores, restaurants and businesses that have a debit machine.

Deductions

Money that is taken off your pay cheque. Some of the basic deductions in Canada are Employment Insurance, Income Tax, Employee Benefits, and Pension Plans.

Deflation

The opposite of inflation. Deflation occurs when prices drop over time.

Deposit

Putting money into an account. Cash, cheques and electronic transfers that are added to your account are called deposits.

Dividends

The amount of a company’s profits that the company pays to people who own stock or shares in that company.

Exchange Rate

The rate at which things are exchanged.

Expenses

Items that money is spent on, such as rent, food, bus fare and clothing.

Financial Literacy

The knowledge and skills to make informed decisions about money.

Financial Planner

Someone who helps you plan how you spend and save your money. They can help you plan for your future.

Fixed Income

An income level that does not change, that is, you receive the same amount of money each month. Usually people on a fixed income do not have a lot of extra money or financial freedom to make large purchases.

Gross

In terms of income, gross refers to the amount of money you received before anything is deducted (like taxes).

Guaranteed Interest Certificate (GIC)

An insured time deposit with a bank. When you sign up for a GIC, you agree you will not use the money in your deposit for a specified amount of time, usually 6 months to 5 years. When you honour your agreement, you can earn a guaranteed interest rate so your money appreciates.

Guaranteed Income Supplement (GIS)

A benefit from the Government of Canada for low income pensioners. The amount received depends on the person’s income and marital status.

HST

Harmonized Sales Tax. A tax that, in BC, is 12% added on to most goods and services that you buy. (There are some items that are exempt, or are not charged, HST.)

High Interest Loans

Money borrowed with a high interest rate.

Income

The amount of money a person has coming in to their household.

Inflation

The continual increase of the price of goods and services over time.InsuranceFinancial protection against possible loss or damage. You could have insurance on your house, car or life. In the event of accidental damage to the insured property or person, you would receive money to help deal with the situation.

Interest

Extra money paid to someone else when you borrow money or money that may be paid to you when you have invested money.

Interest Rate

The amount, usually expressed as a percentage, that determines how much additional money you pay (loan) or receive (investment) when borrowing or lending money.InvestUsing your money to earn more money by purchasing things like bonds, real estate) that will increase in value.

Investment Portfolio

A record of all the investments a person has.

Net

The amount of money you receive as earnings AFTER all deductions (taxes, and so on) have been taken off. This is often referred to as your “take-home pay.”

Overdraft

An amount of money that you are allowed to take out of your bank account that is greater than the amount you deposited. Interest and fees are usually charged on the money that is borrowed.

PIN

Personal Identification Number. This is your personal, secret code that allows you to access your bank account. You will need your PIN if you access telephone banking, online banking or an ATM.

Portfolio

A mix of stocks, bonds, and cash grouped together to balance your risk and reward.

Principal

The original amount of money that is put in the bank (or investment) or the original amount of money that is borrowed.

Profit

Money that is made (through earnings, investment, and so on) after all other expenses or deductions are paid.

RRSP

Registered Retirement Savings Plan. An account for saving money for when you retire. It is helpful because it can reduce the amount of taxes you are required to pay to the government.

RESP

Registered Education Savings Plan. A way for parents to save for their children’s post-secondary education that has some tax benefits.

Salary

The amount of money that is paid to an employee in a year. This amount is usually divided up equally and made in payments once every two weeks or twice a month.

Savings Account

A bank account where you can put your money to save it for future expenses.

Taxes

An amount of money that the government requires people to pay. It can be dependent on your income, the goods or services you are purchasing, the value of your property, and so on. This money is collected by the government and used to run government programs and services.

Wage

An amount of money paid to a worker based on the number of hours or days they work.

Withdrawal

In banking, this means taking money out of an account.

ATM

Automated Teller Machine. Machines where, using a bank card, you can access your bank accounts to withdraw or deposit money, pay bills or transfer money between accounts.

Appreciate

To grow in value. Stocks, bonds, RRSPs and some assets, such as property, can increase over time. You may purchase a stock when it is valued at $5.00 per unit and over 3 years it can appreciate to be valued at $6.00 per unit.

Asset

In the financial world, an asset is something you own that has value. Money in your bank account is an asset, a house that you own is an asset.

Balance

The amount of money remaining in an account. In banking, your balance is what you have left after all deposit and withdrawal transactions have been processed. If you receive a bank statement your balance will be the money that is left in your account.

Bank Account

An account you have at the bank where you can deposit and/or withdraw money.

Bond

An investment that you can purchase from a bank, which will grow into more money based on an assigned interest rate.

Bounced cheque

A cheque the bank refuses to cash or pay because you don’t have enough money in your account to cover it.

Budget

A document used to organize and track income and expenses.

Career

A job or profession that someone does (usually for a long time).

Cheque

A piece of paper that you can use to give permission for a bank to give money from your bank account to someone else. You can use cheques instead of cash. Cheques are usually printed by your bank and you fill in the information about who you want to give the money to and how much money you want to give, and then sign it. The amount you write on the cheque is withdrawn from your account, by the bank, and given to the person/business to which you wrote the cheque.<

Chequing Account

An account you set up at the bank that allows you to transfer money to other people using cheques.

Child Tax Credit

A benefit received from the Government of Canada that provides financial assistance to help eligible families pay for some of the costs of raising their children who are under the age of 18.

Compound Interest

Interest that is paid on an original amount of money, as well as on the interest that money has already earned.

Consumer

A person who buys goods or services.

Credit

Money that a bank, business, or person allows someone else to use and then pay back in the future.

Credit Card

A card that represents a credit agreement. A bank or financial institution may give a credit card that can be used to pay for goods or services before the money is actually deposited in the account. The credit card owner agrees to pay back the borrowed money at a designated time. If full payment is not made on the payment date, interest will usually be charged.

Credit History

A record of how well someone has paid back their loans, bills or debts.

Credit Union

A financial institution similar to a bank and that provides many of the same services as a bank. Credit unions suggest they focus more on their members rather than profits and are an important contributor to their community.

Currency

Money that a country uses. In Canada, our currency is the Canadian dollar.

Currency Exchange Rate

The value of one country’s money when converting it to another country’s money.

Debit Card

A card issued by your bank that allows you direct access to your bank account. You can use your debit card to deposit or take money out of your account at an ATM. You can also use your card to make purchases at stores, restaurants and businesses that have a debit machine.

Deductions

Money that is taken off your pay cheque. Some of the basic deductions in Canada are Employment Insurance, Income Tax, Employee Benefits, and Pension Plans.

Deflation

The opposite of inflation. Deflation occurs when prices drop over time.

Deposit

Putting money into an account. Cash, cheques and electronic transfers that are added to your account are called deposits.

Dividends

The amount of a company’s profits that the company pays to people who own stock or shares in that company.

Exchange Rate

The rate at which things are exchanged.

Expenses

Items that money is spent on, such as rent, food, bus fare and clothing.

Financial Literacy

The knowledge and skills to make informed decisions about money.

Financial Planner

Someone who helps you plan how you spend and save your money. They can help you plan for your future.

Fixed Income

An income level that does not change, that is, you receive the same amount of money each month. Usually people on a fixed income do not have a lot of extra money or financial freedom to make large purchases.

Gross

In terms of income, gross refers to the amount of money you received before anything is deducted (like taxes).

Guaranteed Interest Certificate (GIC)

An insured time deposit with a bank. When you sign up for a GIC, you agree you will not use the money in your deposit for a specified amount of time, usually 6 months to 5 years. When you honour your agreement, you can earn a guaranteed interest rate so your money appreciates.

Guaranteed Income Supplement (GIS)

A benefit from the Government of Canada for low income pensioners. The amount received depends on the person’s income and marital status.

HST

Harmonized Sales Tax. A tax that, in BC, is 12% added on to most goods and services that you buy. (There are some items that are exempt, or are not charged, HST.)

High Interest Loans

Money borrowed with a high interest rate.

Income

The amount of money a person has coming in to their household.

Inflation

The continual increase of the price of goods and services over time.InsuranceFinancial protection against possible loss or damage. You could have insurance on your house, car or life. In the event of accidental damage to the insured property or person, you would receive money to help deal with the situation.

Interest

Extra money paid to someone else when you borrow money or money that may be paid to you when you have invested money.

Interest Rate

The amount, usually expressed as a percentage, that determines how much additional money you pay (loan) or receive (investment) when borrowing or lending money.

Invest

Using your money to earn more money by purchasing things like bonds, real estate) that will increase in value.

Investment Portfolio

A record of all the investments a person has.

Net

The amount of money you receive as earnings AFTER all deductions (taxes, and so on) have been taken off. This is often referred to as your “take-home pay.”

Overdraft

An amount of money that you are allowed to take out of your bank account that is greater than the amount you deposited. Interest and fees are usually charged on the money that is borrowed.

PIN

Personal Identification Number. This is your personal, secret code that allows you to access your bank account. You will need your PIN if you access telephone banking, online banking or an ATM.

Portfolio

A mix of stocks, bonds, and cash grouped together to balance your risk and reward.

Principal

The original amount of money that is put in the bank (or investment) or the original amount of money that is borrowed.

Profit

Money that is made (through earnings, investment, and so on) after all other expenses or deductions are paid.

RRSP

Registered Retirement Savings Plan. An account for saving money for when you retire. It is helpful because it can reduce the amount of taxes you are required to pay to the government.

RESP

Registered Education Savings Plan. A way for parents to save for their children’s post-secondary education that has some tax benefits.

Salary

The amount of money that is paid to an employee in a year. This amount is usually divided up equally and made in payments once every two weeks or twice a month.

Savings Account A bank account where you can put your money to save it for future expenses.

Taxes

An amount of money that the government requires people to pay. It can be dependent on your income, the goods or services you are purchasing, the value of your property, and so on. This money is collected by the government and used to run government programs and services.

Wage

An amount of money paid to a worker based on the number of hours or days they work.

Withdrawal

In banking, this means taking money out of an account.

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