Welcome to “Mastering Money: The WealthAwesome Personal Finance Glossary for Canadians,” your essential guide to understanding the financial terms and concepts relevant to your economic life in the Great White North. This glossary is meticulously curated to cater to everyone from Maple Leaf financial novices to savvy investors traversing the Canadian financial landscape.
At WealthAwesome.com, we staunchly believe that clarity in personal finance is key to building a prosperous future. Canadian finance has its unique nuances, from TFSA and RRSP accounts to understanding the implications of the Bank of Canada’s interest rate decisions. Our glossary breaks down these complexities into digestible explanations so that you can navigate your financial voyage with confidence.
Embark on your journey to financial literacy with us, and let’s unlock the potential of informed decision-making. Understanding personal finance is not just about making money—it’s about making your money work efficiently for you in Canada’s dynamic economic environment.
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Cash Gift
- Cash Gift: A ‘cash gift’ is a monetary gift received in the form of cash rather than in-kind or through other financial instruments. In credit card rewards programs, a cash gift might refer to a lump sum given to the cardholder, typically as part of a promotional offer or reward program, which can be deposited into their account or used to offset their credit card balance.
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Good Standing
- Good Standing: In the context of credit cards, ‘good standing’ refers to an account status indicating that the cardholder is fulfilling their credit agreement terms. This typically means they are making payments on time, staying within their credit limit, and not engaging in any behavior that could be considered a breach of the card contract. Accounts in good standing are often eligible for benefits like promotional offers, and credit limit increases, and may positively influence the cardholder’s credit score.
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Installment Plan
- Installment Plan: An ‘installment plan’ is an agreement between a cardholder and a credit card issuer that allows the cardholder to pay for a purchase over a set period in fixed monthly installments. These plans can come with or without interest and are often used for larger purchases to spread the cost over time, making them more manageable for the cardholder’s budget.
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Statement Credit
- Statement Credit: ‘Statement credit’ is a credit amount applied directly to a cardholder’s credit card account balance. It is usually a return of a portion of the amounts spent on the card and can result from cash-back rewards, refunds, or other promotional credits. Statement credits reduce the account balance but do not count as a payment toward the minimum payment due.
