Saving And Investing

Question 1

Why save money?

Answer 1

Increase consumer options, future projects, emergency fund

Question 2

Ways to save?

Answer 2

Savings account, follow a budget, investing

Question 3

What is investing?

Answer 3

Deploying capital toward projects or activities that are expected to generate a positive financial return over time

Question 4

What are some ways you can invest?

Answer 4

RRSP(registered retirement savings plan): offers a tax deduction on your income when you contribute, but you have to pay tax when you withdraw the money.
TFSA( tax free savings account) offers no up front tax break, but you don’t pay tax on any withdrawals, including growth.

Question 5

What is an RESP: registered education savings plan

Answer 5

A tax shelter used to finance post secondary studies

Question 6

How does the Canada deposit insurance corporation have your back?

Answer 6

If you have deposited money in a registered financial institution, your funds will be covered up to $100,00o if the financial institution becomes insolvent.

Question 7

How are savings accounts limited in options?

Answer 7

You can only either have a basic savings account or a high interest savings account.

Question 8

What is an investment horizon?

Answer 8

Determining your investment horizon means asking questions such as, what will do you with your savings? What are your goals? How much money will you invest? When do you plan to use the invested sums?

Question 9

What is a GIC?

Answer 9

It’s a very secure saving with a fixed interest rate