Financial Literacy Final Review PDF

**Unit 1** ========== **We are afraid to talk about money. Here is how to break a taboo! (just review no memorize)** ============================================================================================== **How to start talking about money:(read over)** - - - - - **7 Steps To G...

**Unit 1** ========== **We are afraid to talk about money. Here is how to break a taboo! (just review no memorize)** ============================================================================================== **How to start talking about money:(read over)** - - - - - **7 Steps To Getting Better At Talking Abt Money: (just review)** 1. 2. 3. 4. 5. 6. 7. **Money stories and what they are? (memorize it)** - - **4 Things That Affect Your Money Story As A Child (read over)** - - - - **Needs Vs Wants (read over)** **Trade-off** is when you must decide between fulfilling a need or a want based on available resources. - - **6 step decision making process(explain then done) (MEMORIZE)** 1. 2. 3. 4. 5. 6. **Economics: (read over)** **What is economics:** The study of production, consumption, transfer of wealth, and money, and how humans use it. **Scarcity:** when there is limited resources, and limited supply. (The more scare = more valuable) **Demand:** how much of something is desired by buyers at different prices. **Supply:** How much of a good or service is offered/made/produced. **Economic Systems:** 1. 2. 3. 4. **Opportunity Cost:** Giving up one thing for the next best option. **Complementary:** The extras that come with purchase **Substitutes:** Things that replace your purchase **Demand law:** higher price of good, less ppl will demand that good **Supply Law:** Price increases quantity increases, Price decreases quantity decreases. **Unit 2 (memorize)** **Sensitive information Section** **Types of sensitive information** - - - - - - - - - - - - - - - - **Documents that contain Sensitive Information** - - - - - - - - - - - - - - - - - - - - **Purpose of SIN \#** - - - - - - **What To Do When Sensitive Information Compromised** - - - - - - - - **Methods of storage and protection of sensitive/personal information.** - - - - - - - - - - - - - - - - - **Types of scams.** - - - - - - - - - **Unit 3 (memorize)** **Types of Financial Institutions:** - - - - - - - - - - - - - - Trust Companies: Banks: ---------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------- Trust companies can administer estates, trusts, and pension plans Banks can't unless they're done through a separate trust subsidiary Can be incorporated and regulated federally or provincially. Must have more than \$25 mil of regulatory capital and approved by OSFI to give loans Have full commercial lending powers - - - - - - - - - - **Types of saving accounts** +--------+--------+--------+--------+--------+--------+--------+--------+ | type | descri | typica | Typica | Add to | Is it | Write | Money | | or | ption | l | lly | balanc | FDIC | checks | stuck | | accoun | | | minimu | e | insure | /pay | for a | | t | | Intere | m | regula | d? | bills | set | | | | st | balanc | rly? | | direct | time? | | | | rate | e | | | ly? | | +========+========+========+========+========+========+========+========+ | Tradit | Your | 0.33% | Often | YES | YES | NO | NO | | ional | money | up to | no | | | | | | saving | earns | 4% | minimu | | | | | | s | intere | | m | | | | | | accoun | st | | balanc | | | | | | t | the | | e | | | | | | | bank | | | | | | | | | lends | | | | | | | | | out | | | | | | | | | money | | | | | | | | | to | | | | | | | | | others | | | | | | | | | to | | | | | | | | | make | | | | | | | | | more | | | | | | | | | money | | | | | | | +--------+--------+--------+--------+--------+--------+--------+--------+ | Online | They | 0.33% | No | YES | YES | NO | NO | | saving | can | up to | minimu | | | | | | accoun | genera | 5% | m | | | | | | t | lly | | balanc | | | | | | | pay | | e | | | | | | | higher | | | | | | | | | intere | | | | | | | | | st | | | | | | | | | as | | | | | | | | | they | | | | | | | | | dont | | | | | | | | | have | | | | | | | | | physic | | | | | | | | | al | | | | | | | | | locati | | | | | | | | | on | | | | | | | +--------+--------+--------+--------+--------+--------+--------+--------+ | Certif | A | 0.33% | 1K or | NO | YES | NO | YES | | icate | timed | up to | more | | | | | | of | deposi | 5% | | | | | | | deposi | t | | | | | | | | t | you | | | | | | | | | agree | | | | | | | | | with | | | | | | | | | the | | | | | | | | | bank | | | | | | | | | to | | | | | | | | | keep | | | | | | | | | money | | | | | | | | | in the | | | | | | | | | accoun | | | | | | | | | t | | | | | | | | | set | | | | | | | | | period | | | | | | | | | of | | | | | | | | | around | | | | | | | | | a year | | | | | | | +--------+--------+--------+--------+--------+--------+--------+--------+ | Money | Betwee | 0.33% | \$500- | YES | YES | YES, | NO | | market | n | up to | \$1000 | | | | | | accoun | a | 5.25% | 0 | | | LIMITE | | | t | chequi | | | | | D | | | | ng | | | | | | | | | and | | | | | | | | | bond | | | | | | | | | accoun | | | | | | | | | t | | | | | | | | | limits | | | | | | | | | on | | | | | | | | | withdr | | | | | | | | | awals | | | | | | | | | and | | | | | | | | | have | | | | | | | | | higher | | | | | | | | | minimu | | | | | | | | | m | | | | | | | | | balanc | | | | | | | | | es. | | | | | | | | | Pay | | | | | | | | | higher | | | | | | | | | intere | | | | | | | | | st | | | | | | | | | then | | | | | | | | | tradit | | | | | | | | | ional | | | | | | | | | accoun | | | | | | | | | ts | | | | | | | +--------+--------+--------+--------+--------+--------+--------+--------+ **Preditory loans:** - - **7 common banking fees:** - - - - - - - **Bank account alert:** - - - - - - - - **Unit 4 (Memorize)** **Definitions:** 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. **Important Information** ------------------------- **5 Tips for maintaining good credit:** 1. 2. 3. 4. 5. **5 Signs that you may be in debt trouble:** 1. 2. 3. 4. 5. **5 Solutions if u have debt problem:** 1. 2. 3. 4. 5. **3 C's** - - - **Unit 5 (memorize)** **What is income tax:** **Income tax** is a form of taxation imposed by governments on individuals earning income. - - - - **How do they tax you:** They tax you based on your income and they divide them into **Tax Brackets**: - - - - - - - - - - - - - **Benefits Of filing tax return** - - - - **What is Gst and Pst** - - - **What is a TD1 form** - - - - - - - **What\'s on the T4 slip?** - - - - - - **To do your taxes you need.** - - - - - - - **Different ways to do taxes.** - - - - - - - - - **Important Dates** - - - - - - - - **The 6 steps explained.** **1.Step 1** Identification and other info. **2.Step 2** Total income- report all income from all sources **3.Step 3** total Income - minus deductions = Net income (how much \$ after certain deductions) **4.Step 4** Taxable income. = Net income - deductions. (after deductions from net income to see how much \$ is taxable) **5.Step 5** Federal tax. Taxable income x federal tax rate - federal non refundable tax cred = fed tax also provincial tax as well **6.Step 6** Refund or balance owing. Total payable - total credits = refund balance/owing **[Submit your report to the CRA]** **Notice of assessment:** **Notice of Assessment:** Is an official statement from a tax authority (like the IRS or CRA). - - - - -