Glossary

list of all transactions within a bank account over a set period, usually a month

an estimate of the income and expenses over a specific time period, usually a month or a year

a tool that can be in the form of a worksheet, template, spreadsheet or app to assist in creating a budget

any costs incurred for the purpose to earn business income

a government administered retirement pension plan that is available to all individuals who made contributions to the program

agency that administers tax, benefits, and related programs to ensure compliance on behalf of governments across Canada, thereby contributing to the ongoing economic and social well-being of Canadians

official document issued by the provincial or territorial trades training authority recognizing that you are qualified to work in a particular skilled trade

individual who is fully certified and can work in the full scope of the trade.  Many trades require a Red Seal Endorsement to be fully trade certified in Canada.

highest-ranking person in a Company, ultimately responsible for Company's direction and managerial decisions

the interest on savings calculated on both the initial principal amount plus the accumulated interest from previous periods (interest earned on interest)

an asset, usually money, that is owed or due

a retirement plan, where an employee typically remits a fixed amount or percentage of their paycheck to fund their retirement. The employer may make a prescribed matching contribution amount to the plan as an added benefit.  The contributions are invested on your behalf, but there is no certainty on how much your pension will be worth upon retirement.

amount of remaining income available to be spent once income taxes and deductions have been taken

the average tax rate for an individual, calculated by the total tax (net tax liability) divided by taxable income

a separate set of funds that can be available at any time to cover unexpected expenses or financial emergencies

a government administered program that provides temporary income support to unemployed workers while they look for employment or upgrade their skills

the state of having enough assets or passive income sources to cover one’s living expenses perpetuity without support from further employment.  Also called financial independence

the state of having enough assets and/or passive income sources to cover one’s living expenses in perpetuity, without support from further employment.

having the knowledge, skills, and confidence to make responsible financial decisions

an individual’s total earnings prior to any taxes and other deductions

the Canadian tax return that individuals complete every year to calculate whether they owe tax on their income.  A return must also be completed and submitted to Canada Revenue Agency to receive federal and provincial or territorial benefits and credits.

the rate expressed as a percentage of the loan amount to borrow money

the tax rate that will be applied to a taxpayer on the next dollar of taxable income

accelerated training programs offered by post-secondary education institutions that are intended to help people retrain or upgrade their skills in a variety of sectors

a person’s unique set of core beliefs about money and the attitudes associated with it

the amount of cash generated or lost over a specific period of time

the value of net assets that an individual has calculated by total assets less total liabilities

generally hours worked by an employee greater than 8 hours a day or 40 hours a week, depending on Provincial and/or Territorial employment laws

any income earned with little or no active effort, not to include such working hours as an employee

the regular amount of money that an employee is paid, usually expressed on a per hour or annual basis

a document, either paper or electronic form that is issued to an employee with every payday. Also referred to as a pay slip

educational theory and hands-on work program, usually encompassing several months up to a year, that assists new entrants into the Trades preparing them to find work as an apprentice

the private dwelling that an individual or family occupies most of the time.  Unit can be in the form of a house, condominium, cottage, apartment, or mobile home.

form completed by employer showing information on an employee's employment history when an employee experiences an interruption of earnings

stamped mark on the provincial or territorial trade certificate recognizing that one has the knowledge and skills necessary to practice that trade across Canada

a designated skilled trade in Canada governed by regulations under the Provincial and Territorial Apprenticeship Acts.  These regulations outline the administrative procedures and in some case the standards and conditions of training for specific trades (eg. methods of registering apprentices, curriculum, accreditation, and certification).

a retirement savings and investment plan that individuals can open an account for and contribute to.  Deductible contributions can be used to reduce your income tax.

a ratio measuring the amount of return or benefit on a particular investment, relative to its costs

an acronym for setting intentions to ensure that the aims meet all the criteria of being Specific, Measurable, Achievable, Relevant, and Time-Based

the percentage of after-tax income that is put towards savings

a unique nine-digit number that identifies a person in Canada for tax purposes and other government programs.  Needed for employment and being paid in Canada

amount of funds that employers are obligated to withhold from their employees and remit to Canada Revenue Agency.  Includes Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax

organization that commits to ensuring a trade apprentice receives high-quality on-the-job instruction and progresses through the apprenticeship education program outlined by the Provincial or Territorial Apprenticeship Authority

amounts that help reduce the taxes that you owe

any type of investment, financial account, or savings plan that is either tax-exempt, has the ability to defer tax, or offers other tax benefits

a registered savings account that individuals 18 and over with a valid Social Insurance Number (SIN) can open to set money aside tax-free throughout their lifetime

amount of your income that is subject to tax.  It is used to calculate federal and provincial/territorial tax amounts.

tax form used to determine the amount of tax to be deducted from an individual's employment income or other income.  Federal and provincial/territorial TD1 forms are completed separately

an individual who is registered in a specialized trades training program acquiring skills and competencies through a combination of on-the-job training and classroom learning