Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Personal Life Management > Financial Literacy Terms > Flashcards

Financial Literacy Terms Flashcards

Definitions

1
Q

Fixed expense

A

Expenses that are typically due at the same time each month and are predictable amounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Flexible expense

A

Expenses that are paid at different times each month and vary in the amount from month to month.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Regular expense

A

Expenses that occur on a predictable and frequent basis, such as weekly or monthly. They can be fixed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Irregular expense

A

Expenses that are not expected or occur infrequently.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Basic expense

A

Things we spend money on because we need them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Discretionary expense

A

Things that we spend money on because we want them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Loans

A

When you borrow money from a financial institution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Mortgage

A

Money you owe on a home you own.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Credit Card

A

You borrow money from a bank to make purchases and pay bills, then pay it back monthly with interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Balance

A

The amount to be paid on a loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Principal

A

The total amount which is borrowed and on which interest is calculated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Collateral

A

Something of value that is pledged as security on a loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Secured loan

A

A loan guaranteed by collateral (e..g, mortgage secured by your house) - lower rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Unsecured loan

A

Credit Cards - Higher rates - No collateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Line of credit

A

Lets you borrow money up to a set amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Credit Bureau

A

A company that stores and distributes credit information. E.g Equifax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Credit score

A

Shows how reliable you are with credit, credit reports predict how well you will manage loans and other payments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Co-signer

A

Someone who will make a payment if you don’t.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Fixed interest rate

A

Stays the same for the duration of the loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Variable interest rate

A

Is typically prime +/- a percentage. As banks change prime, your rate changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Prime

A

Lowest interest rate that banks charge monthly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Loan shark

A

Someone who lends money, who charges high interest rates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Bankruptcy

A

A legal procedure filed in federal bankruptcy court that allows an individual that is unable to pay its debt when due to reduce, reorganize or cancel those debts.

24
Q

Cash advance

A

Using your card like a debit card, no interest free period and has a fee

25
Q

APR

A

Interest rate is the price you pay for borrowing money. (Annual Percentage Rate)

26
Q

Bank interest

A

How much banks give you for having money in an account at the bank.

27
Q

Purchase protection

A

Is free benefit on many credit cards for stolen, lost or damaged.

28
Q

Cyberbanking

A

Banking through online services. Allows you to transfer money, check balances, pay bills, etc.

29
Q

Chequing account

A

Used to pay bills, do money transfers, debit transactions, and write cheques. Many are free if you are a student.

30
Q

Savings account

A

Money is meant to stay in account and earn interest. Usually you have to pay a monthly fee if your minimum balance is not high enough.

31
Q

Debit card

A

Money is meant to stay in account and earn interest. Usually you have to pay a monthly fee if your minimum balance is not high enough. Electronic link to your chequing or savings account. Money is exchanged instantly.

32
Q

Direct deposit

A

Earnings, or government payments, that are automatically deposited into bank accounts, saving time, money and effort.

33
Q

Automatic payment

A

This is when you set up to have a bill paid directly out of your bank account at the same time each month. Can be charged with NSF if not enough money in account.

34
Q

Paypass

A

Tap (Contactless Payment)

35
Q

Grace period

A

Interest free period to pay off last month’s purchases

36
Q

Minimum payment

A

Smallest amount you pay on your credit card each month.

36
Q

Term

A

The amount of time it will take you to pay off a loan.

37
Q

Credit limit

A

The maximum amount of money you can borrow or spend on a credit card.

38
Q

Hard inquiry

A

When a money lender asks to look at your credit review when applying for a loan.

39
Q

Late fee

A

Additional charge if you don’t pay minimum balance in time.

40
Q

NSF

A

Insufficient funds

41
Q

Over the limit fee

A

Charge if you spend more than your monthly limit.

42
Q

OSAP

A

Stands for Ontario Student Assistance Program. A mix of grants and loans based on your specific financial needs.

43
Q

Bursary

A

Bursaries are financial-need based awards that do not have to be repaid with money.

44
Q

Scholarship

A

They are merit based and are awarded for academic achievement, sports achievement, or volunteerism.

45
Q

GIC

A

Receive a fixed amount of interest for a fixed amount of money for a fixed amount of time.

46
Q

Bonds

A

A bond is an “IOU”, certifying that you loaned money to a government or corporation and outlining the terms of repayment.

47
Q

Canada savings bond

A

Safest type of bond. Backed by the Government of Canada

48
Q

Corporate bond

A

Sold by private companies to raise money. If a company goes bankrupt bondholders have first claim to assets before stockholders but still may not get full money back.

49
Q

Stocks

A

Represent ownership in a corporation. Stockholders own a share of the company and are entitled to a share of the profits.

50
Q

Mutual funds

A

Professionally managed portfolios made up of stocks, bonds and other investments.

51
Q

Balanced fund

A

Includes a broad mix of stocks and bonds.

52
Q

Growth fund

A

Emphasizes companies that are expected to increase in value. Has high risk buy may give great return.

53
Q

Specialized fund

A

Invests in stocks and bonds of companies in a specific industry (e.g., technology, health care)

54
Q

Tax-free savings account

A

Save and invest money without paying taxes on interest.

Personal Life Management (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions