Civics Test

Front 1

Fixed expense

Back 1

expenses that continue month after month. The expense does not change from month to month. (The expense may change as “rent” or “phone plan”, etc. goes up at the end of a year or a contract.)

Front 2

“variable expense”

Back 2

expenses that increase or decrease due to a number of factors that affect the expense.

Front 3

“net” income:

Back 3

total earning after you pay for expenses.

Front 4

“gross” income:

Back 4

total earnings before you deduct taxes or expenses.

Front 5

“after tax” income

Back 5

The amount of money that someone or a company has after all the deductions are paid.

Front 6

Deficit -

Back 6

The amount by which expenses exceed income or costs outstrip revenues. Deficit essentially refers to the difference between cash inflows and outflows. An excess of expenditures over revenue. Companies sometimes have a deficit because they have spent more on set up and equipment or raw materials than they have made in profits or sales.

Front 7

Debt –

Back 7

something, typically money goods or services, that is owed or due. An obligation to pay or render something to someone. Amount of money that you owe to a person, bank or company.

Front 8

Annual Fee -Annual Fee -

Back 8

An annual fee is the yearly cost of card membership. The fee varies with each card.

Front 9

Cash Advance -

Back 9

Taking out a cash loan on your credit card. Cash advances are typically charged at a higher interest rate, and can sometimes carry additional fees. Use sparingly.

Front 10

Instant Approval -

Back 10

Some credit card companies will attempt to qualify your application upon submission of an application. Typically, people with established credit histories will get a decision in seconds.

Front 11

Introductory Rate -

Back 11

To entice potential customers, some cards offer lower rates or other benefits for a brief amount of time. Good for balance transfer and those seeking bonus rewards.

Front 12

Minimum Payment -

Back 12

If you carry a monthly balance, there will be a minimum amount due on a specified date. Failure to pay the minimum on time will result in fees and/or other penalties.
***This is very expensive! Use the interest calculator to help you see how much interest rates will have an impact.

Front 13

Interest Rate -

Back 13

An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor). The yearly price charged by a lender to a borrower in order for the borrower to obtain a loan. This is usually expressed as a percentage of the total amount loaned."

Front 14

RESP –

Back 14

Registered Education Savings Plan (RESP) is a tax-sheltered plan that can help you save for a child's post-secondary education. With the high cost of education, many parents, grandparents and other family and friends are recognizing the need to save well before the expenses become a reality.

Front 15

RRSP -

Back 15

A Registered Retirement Savings Plan (RRSP) is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis.

Front 16

Amortization -

Back 16

the process of decreasing an amount over a period of time. In the context of a loan, amortization is the process by which your loan principal decreases over the life of your loan.