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Questions and Answers
What does the term 'trade-off' refer to in decision making?
What does the term 'trade-off' refer to in decision making?
Scarcity refers to having unlimited resources and a high supply of goods.
Scarcity refers to having unlimited resources and a high supply of goods.
False
What is the definition of 'opportunity cost'?
What is the definition of 'opportunity cost'?
The value of the next best alternative that is forgone when making a choice.
The law of demand states that as the price of a good _____, the quantity demanded by consumers typically _____ .
The law of demand states that as the price of a good _____, the quantity demanded by consumers typically _____ .
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Match the following key economic concepts with their definitions:
Match the following key economic concepts with their definitions:
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Which of the following is a sign that you may be in debt trouble?
Which of the following is a sign that you may be in debt trouble?
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An example of a _____ is when a product can be replaced by another similar product.
An example of a _____ is when a product can be replaced by another similar product.
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Economic systems have no relation to the concepts of demand and supply.
Economic systems have no relation to the concepts of demand and supply.
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Which of the following best describes a 'money story'?
Which of the following best describes a 'money story'?
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According to the supply law, if the price of a good decreases, the quantity supplied will increase.
According to the supply law, if the price of a good decreases, the quantity supplied will increase.
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What is the term for the situation where you must choose between a need and a want due to limited resources?
What is the term for the situation where you must choose between a need and a want due to limited resources?
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A product that is bought alongside another item is called a _____.
A product that is bought alongside another item is called a _____.
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Match the following economic systems with their descriptions:
Match the following economic systems with their descriptions:
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Which of these is a type of sensitive information?
Which of these is a type of sensitive information?
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A driver's licence does not contain sensitive information
A driver's licence does not contain sensitive information
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What does SIN stand for?
What does SIN stand for?
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Which of the following best describes the purpose of a Notice of Assessment?
Which of the following best describes the purpose of a Notice of Assessment?
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What is the primary function of a TD1 form?
What is the primary function of a TD1 form?
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In the context of income tax calculation, what does 'Net Income' refer to?
In the context of income tax calculation, what does 'Net Income' refer to?
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Which of these options describes the correct order in which income tax is calculated?
Which of these options describes the correct order in which income tax is calculated?
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What is the final step in the income tax process, according to the text?
What is the final step in the income tax process, according to the text?
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Which of the following best describes the relationship between scarcity and value?
Which of the following best describes the relationship between scarcity and value?
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According to economic principals, what typically happens to demand when the price of a good increases?
According to economic principals, what typically happens to demand when the price of a good increases?
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A person has to decide between buying a new video game that they really want, or pay for their car repair, which is a must have to get to work. This is an example of:
A person has to decide between buying a new video game that they really want, or pay for their car repair, which is a must have to get to work. This is an example of:
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Of the following, which factor is LEAST likely to directly shape or influence an individual’s ‘money story’?
Of the following, which factor is LEAST likely to directly shape or influence an individual’s ‘money story’?
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According to the supply law, if the price of a good decreases, what tends to happen to the quantity supplied?
According to the supply law, if the price of a good decreases, what tends to happen to the quantity supplied?
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Which of the following is a document that is LEAST likely to contain sensitive information?
Which of the following is a document that is LEAST likely to contain sensitive information?
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The main purpose of a Social Insurance Number (SIN) is to:
The main purpose of a Social Insurance Number (SIN) is to:
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Which of the following is NOT a suggested step to take when your sensitive information has been compromised?
Which of the following is NOT a suggested step to take when your sensitive information has been compromised?
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Study Notes
Financial Literacy Review - Unit 1
- Fear of discussing money is a common issue, but learning to discuss personal finances is essential.
- Start small, focusing on one financial lesson at a time.
- Talking to friends about finances can lead to healthier relationships and more opportunities.
- Honesty about financial situations is key to building confidence.
- Setting financial goals can ease worry and build confidence.
- Find like-minded people for support in personal situations.
- Understanding that financial success isn't solely determined by wealth allows people to properly approach financial advice.
- Prepare for potentially hurtful advice in financial matters.
Financial Literacy Review - Unit 1: Money Stories
- Money stories are a set of beliefs and experiences that influence how people view and manage money.
- These experiences affect money and financial-related decisions.
- Children pick up their money stories from things they see and hear.
- Money stories include beliefs and experiences that affect how a person views and manages money.
Financial Literacy Review - Unit 2: Sensitive Information
- Personal Identification Number (SIN)
- Drivers Licence Number
- Passport Number
- Medical information
- Health records
- Insurance information
- Medical history
- Financial information
- Bank account number
- Credit card number
- Investment account details
- Login Credentials
- Passwords
- PINs
- Security questions and answers
- Financial documents
- Bank statements
- Tax returns
- Pay stubs
- Identification documents
- Passport
- Drivers license
- Social Insurance cards
- Educational documents
- Diploma
- Job application
- Resume
- Legal documents
Financial Literacy Review - Unit 2: Sensitive Information Purpose
- SIN is used to identify Canadians uniquely.
- SIN is used in government programs, tax purposes, employment, banking and financial transactions, and credit reporting.
Financial Literacy Review - Unit 3: Confidentiality
- Maintaining confidentiality is crucial for sensitive information.
- Medical information is a sensitive topic.
Financial Literacy Review - Unit 4: Financial Definitions
- Mortgage: A loan for buying a house.
- Principal: The amount of money owed.
- Collateral: Something valuable used as security for repayment of a loan.
- Grace Period: Time for paying a loan before fees are applied.
- Down Payment: Initial payment for a loan.
- Consolidation Loan: Combining multiple loans into a single loan.
- Billing Cycle: Time period between billing statements.
- Co-Signer: Someone guaranteeing payment for a loan.
- Creditor: Lender of money.
- Secured Loan: Loan backed by collateral.
- Foreign Transaction Fee: Charge for using a card in a different country.
- Prime Rate: Interest rate offered to best customers.
- Term: Period for loan repayment.
- Variable Rate: Interest rate that may change.
- Interest: Extra cost for borrowing or profit from savings.
- Credit Limit: Maximum amount that can be borrowed.
- Balance: Amount owed on a credit card.
- Debt: Sum of money borrowed.
- Minimum Payment: Lowest required payment on a credit card.
- Fixed Rate: Constant interest rate throughout a loan length.
- Revolving Loan: Loan that is repaid, and may be borrowed again without changing loan terms.
- Debtor: Borrower of money.
- Balance Transfer: Moving a balance from one credit card to another with a lower interest rate.
- Credit: The act of getting services or goods with the plan to pay later.
- Cash Advance: Borrowing cash from credit card with higher fee and interest.
- Amortization: The process of paying a loan back over time.
- Loan: Money that must be repaid over time.
- APR (Annual Percentage Rate): Yearly cost of borrowing including both interest and fees.
- Home Equity Line of Credit: Loan using your home as collateral.
- Annual Fee: Yearly charge for credit cards.
- Introductory APR: Initial lower interest rate for a limited time.
- Unsecured Loan: Loan that is not backed by any collateral.
- Installment Loan: Loan paid in installments over a set period.
Financial Literacy Review - Unit 5: Income Tax
- Income tax is a form of taxation on individual income.
- The federal government collects taxes nationwide.
- Each province has its own income tax system.
- Tax brackets are used to calculate tax based on income level.
- Tax deductions reduce taxable income.
- Tax credits reduce the total tax owed.
- Items that help with calculations include RRSPs and childcare expenses.
- Taxes are based on income brackets and different tax rates, and forms like TD1 must be completed.
Financial Literacy Review - Unit 5: Solutions for Debt Problems
- Contact creditors immediately to avoid further issues.
- Avoid accumulating further credit card debt.
- Explore options like getting a second job or professional advice.
- Review past spending decisions and lifestyle for improvement.
Financial Literacy Review - Unit 6: Notice of Assessment
- A notice of assessment explains tax calculations for a particular tax year.
- This document includes the income, deductions, and tax calculations for a particular tax year.
- The official document of taxes owed or amount of tax refund due.
- The document is issued after the tax return is processed giving a deadline to pay any owed taxes.
Financial Literacy Review - General
- Important Information: Set a borrowing limit, deal with reputable creditors, and be careful when cosigning loans.
- Different Ways to File Taxes:* Electronically or on paper, with in-person help or assistance from representatives, and online through NETFILE.
- Tax Tips: Pay debts on time, and do not borrow more than you can afford.
- Important Dates: Taxes due April 30th for most; June 15th for self-employed.
- Filing taxes on electronic devices takes 2 weeks to process. Filling on paper takes 8 weeks.
- There are penalties if taxes aren't paid on time. Penalties increase over time. Tax installments are present for some.
- Taxes must be paid by June 15th if self-employed (or spouse is self-employed)
- Penalties for late tax payments include 5% of the balance owing plus 1% for every month it is not paid up to a max of 12 months.
- Installments or smaller monthly payments are sometimes necessary for those owing more than $3000 in income taxes, due by March, June, September, or December.
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Description
Explore the essential concepts of financial literacy in this unit review. Learn the importance of discussing money, setting financial goals, and understanding personal money stories. Gain insights into how these factors influence financial decision-making and relationships.
