Key Terms
*Brick-and-mortar banks
The term "brick-and-mortar" refers to a traditional street-side business that offers products and services to its customers face-to-face in an office or store that the business owns or rents.
- investopedia.com
*Online Banks
Online banking allows a user to conduct financial transactions via the Internet. Online bankingis also known as Internet banking or web banking. Online banking offers customers almost every service traditionally available through a local branch including deposits, transfers, and online bill payments.
- investopedia.com
*Credit Unions
A credit union is a type of financial cooperative that provides traditional banking services. Ranging in size from small, volunteer-only operations to large entities with thousands of participants spanning the country, credit unions can be formed by large corporations, organizations, and other entities for their employees and members. Credit unions are created, owned, and operated by their participants. As such, they are not-for-profit enterprises that enjoy tax-exempt status.
- investopedia.com
*Checking Account
A checking account is a type of bank account that allows you to easily deposit and withdraw money for daily transactions. This may include depositing a check you receive, taking out cash with your debit card or setting up direct deposit for your paychecks. [...] The primary purpose of a checking account is to hold your money in a secure place for the short term, so it’s available when you need it to pay your bills and other expenses. You can have your paycheck sent to your checking account (known as direct deposit) and then move a portion your earnings to a savings or investment account where it can grow over time.
- cnbc.com
*Savings Account
A savings account is a bank account where you store money and earn interest on that money. You're earning interest because the bank is using your funds to loan money to other people. [...] It's a place for you to save your money for use at a later date (a honeymoon or a down payment for a car, etc.) or as an emergency fund. Although, if a short-term need arises (the airline lost your luggage on the way to your honeymoon or your car broke down), you can immediately transfer some or all of your savings to a checking account to make a purchase and get out of a jam.a bank account that allows you to deposit money, keep it safe and withdraw funds.
*Social Insurance Number (SIN)
The Social Insurance Number (SIN) is a 9 digit number that you need to work in Canada or to have access to government programs and benefits. A SIN is issued to one person only and it cannot legally be used by anyone else. You are responsible for protecting your SIN. Store any document containing your SIN and personal information in a safe place—do not keep your SIN with you.
- canada.ca
*Budget / budgeting
Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.
- mymoneycoach.ca
*Paying Upfront
An upfront payment is a method of transaction in which a client pays for part, or sometimes all, of a project or commission before it is completed. [It can also be paying off goods, like a car, right away and usually in cash.]
- freelancemap.com
*Financing (a car)
Financing a car means taking out a car loan that you repay over time. When you take out a car loan, you agree to pay back the amount you borrowed, plus interest and any fees, within a set period of time.
- creditkarma.com
*Bill
A bill is a written statement of money that you owe for goods or services.
- collinsdictionary.com
*Expenses
The money that you spend on something.
- oxfordlearnersdictionaries.com
*Loaning (a car)
A car loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car.
- encyclopedia.com
Debit / Debit Cards
The definition of a debit is a payment made, or a payment owed. When money is taken out of your checking account to make a payment, this is an example of a debit.
- yourdictionary.com
A debit card is a payment card that deducts money directly from a consumer’s checking account when it is used. Also called “check cards” or "bank cards," they can be used to buy goods or services; or to get cash from an automated teller machine or a merchant who'll let you add an extra amount onto a purchase.
- investopedia.com
Credit / Credit Cards
[...] Credit is generally defined as a contract agreement in which a borrower receives a sum of money or something of value and repays the lender at a later date, generally with interest. Credit also may refer to the creditworthiness or credit history of an individual or a company.
Credit cards allow consumers to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash.
- investopedia.com
Loan
A loan is when you receive money from a friend, bank or financial institution in exchange for future repayment of the principal, plus interest. The principal is the amount you borrowed, and the interest is the amount charged for receiving the loan. Since lenders are taking a risk that you may not repay the loan, they have to offset that risk by charging a fee - known as interest. Loans typically are secured or unsecured. A secured loan involves pledging an asset (such as a car, boat or house) as collateral for the loan. If the borrower defaults, or doesn't pay back the loan, the lender takes possession of the asset. An unsecured loan option is preferred, but not as common. If the borrower doesn't pay back the unsecured loan, the lender doesn't have the right to take anything in return.
- study.com
Debt
Debt is something, usually money, borrowed by one party from another. Debt is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.
- investopedia.com
Personal Identification Number (PIN)
A personal identification number, or PIN, is a string of at least four digits used to unlock a bank account or card to which it has been assigned. A PIN is necessary to access the funds in a bank account with a debit card and to receive a cash advance with a credit card. Increasingly, PINs are used to protect all kinds of secure information, such as personal smartphones or utility bills.
- bankrate.com
ATM
An ATM, which stands for automated teller machine, is a specialized computer that makes it convenient to manage a bank account holder’s funds. It allows a person to check account balances, withdraw or deposit money, print a statement of account activities or transactions, and even purchase stamps.
- bankrate.com
Balance (account)
In banking, the account balance is the amount of money you have available in your checking or savings account. Your account balance is the net amount available to you after all deposits and credits have been balanced with any charges or debits.
- investopedia.com
Credit Limit
The term credit limit refers to the maximum amount of credit a financial institution extends to a client.
- investopedia.com