1. ECONOMICS

2. SAVINGS Part of the current income that is not spent. This is usually before disposable income is determined.

3. HIGHEST RATE OF RETURN Savings account will usually gives the higher rate returns.

4. GIC Guaranteed Investment Certificates Minimum amount of investment 1000.00 1 year investment to 5 year maturity Advantage is you get as higher rate of return than a davings. The disadvantage is that you are locked in for the period and you are penalized if you w/d early.

5. SAVINGS BONDS Issued for a specific period of time by the Government of Canada and usually pay an interest rate above that offered on a savings account. The advantage is that you can cash them in when you want. The advantage is that you do not get the face value of the bind because it has not matured.

6. CDIC Canadian Deposit Insurance Company It guarantees and protects money deposited in all Canadian Banks up to 100,000 total in savings and checking accounts customer.

7. CORPORATE BONDS IOU from Corporations to you. The customer makes interest on the money owed. Corporate bonds are more risky than government bonds and they pay a higher rate of interest.

8. EQUITIES Investments in those things that we can both touch and see. Examples are Homes and Cottages Common Stocks of Corporations

9. COMMON STOCK Personal investment in a company. Riskiest form of investment in a corporation. Better than bonds because they protect against inflation. Buy shares in a company.

10. HOME OWNERSHIP Pride of possession Feelings of independence General sense of security Sense of belonging to community

11. MORTGAGE Repayments of money borrowed to buy a house/condo/cottage Home Equity operates by looking at he value of the home and subtracting the amount owed. You could have either positive or negative equity.

12. ADVANTAGES OF RENTING Free from day to day up keep of the home Declining home prices are not an issue Mobility of the owner After the lease is up, the renter has not further obligation

13. MUTUAL FUNDS A large pool of money is spread out over different stocks

14. TYPE OF MUTUAL FUNDS Equity Bond Mortgage Money Market Balanced

15. INSURANCE Contract in which party agrees to pay another, a sum of money, in case there is a loss. Death, Destruction of property, health concersn.

16. TERM INSURANCE Provides protection for a specific period of time Protection ends after the period of time

17. STRAIGHT LIFE Protects you for you whole life Cash value Higher premiums

18. LIMITED PAY Limited age or a fixed number of years High Premiums Highest cash vale of any insurance plan.