Your All-in-One Canadian Financial Dictionary
Service charge (S/C)
A fee charged by your bank for certain transactions or services.
Shares (Stocks)
Units of ownership in a company. When you buy shares, you own a small part of that business.
Social Insurance Number (SIN)
A unique 9-digit number issued by the Government of Canada. You need it to work, pay taxes, and access government programs.
Sole proprietorship
A business owned and run by one person. There’s no legal separation between you and the business, you keep all the profits, but you’re personally responsible for any debts or losses.
Statement
A summary of your account activity over a period of time, showing transactions, balances, and fees.
Stocks
Investments that represent ownership in a company. Their value can rise or fall based on how the company performs.
Tax-deferred
You don’t pay tax right away. Instead, taxes are delayed until you withdraw the money, common with accounts like RRSP and RRIF
Term
The length of time your loan or investment agreement lasts, like a 5-year mortgage term or a 1-year GIC.
Term life insurance
Life insurance that covers you for a set period, like 10, 20, or 30 years. If something happens during that time, your family gets a payout. If not, the coverage ends.
Transit number
A 5-digit number that identifies your bank branch. It’s used along with your account number for things like direct deposits and transfers.