Adjusted family net income
The income figure the CRA uses to work out many benefits. It's based on the net income on your tax return, plus your spouse's or partner's if you have one.
Learn it hands-on: Get the benefits you're owedThe words on the paperwork, in plain language
What the terms on statements, tax forms and bank websites actually mean in Canada. Inside the journeys, any of these words with a dotted underline can be tapped for its meaning.
Annual percentage rate (APR)
The yearly cost of borrowing as a percentage, so you can compare loans and cards. Since January 2025, lending above 35% APR is generally a criminal offence in Canada, with narrow exceptions such as regulated payday loans.
Learn it hands-on: Get out of high-interest debtAvalanche method
Paying off debt by making every minimum payment, then putting extra money on the debt with the highest interest rate first. It usually costs the least in interest.
Learn it hands-on: Get out of high-interest debtCanada Child Benefit (CCB)
A tax-free monthly payment for families with children under 18. The amount depends on your family's adjusted net income and the number and ages of your children. You must file a return every year to keep receiving it.
Learn it hands-on: Get the benefits you're owedCanada Disability Benefit
A federal monthly benefit for people aged 18 to 64 who are approved for the Disability Tax Credit and have a low income. You apply for it, and must file a return each year.
Learn it hands-on: Get the benefits you're owedCanada Groceries and Essentials Benefit
A tax-free quarterly payment for people with low and modest incomes. It replaced the GST/HST credit in July 2026. Filing your return is how you're considered for it.
Learn it hands-on: Get the benefits you're owedCanada Workers Benefit
A refundable tax credit for people who work and earn a low income. You claim it on your tax return.
Learn it hands-on: Get the benefits you're owedCompound interest
Interest charged on interest. On savings it helps you grow faster; on a credit card balance it makes what you owe grow faster.
Learn it hands-on: Get out of high-interest debtConsumer proposal
A legally binding deal, made through a Licensed Insolvency Trustee under the Bankruptcy and Insolvency Act, to repay part of your unsecured debt, usually over up to five years, with no further interest.
Learn it hands-on: Get out of high-interest debtCredit bureau
A company that keeps records of how people use credit. Canada has two: Equifax Canada and TransUnion Canada.
Learn it hands-on: Build your creditCredit report
Your record of credit accounts, payments, collections and inquiries, kept by each credit bureau. You can see yours for free from both.
Learn it hands-on: Build your creditCredit score
A three-digit number from 300 to 900 that summarizes your credit report. Higher is better. Each bureau and lender may use a different scoring model.
Learn it hands-on: Build your creditCredit utilization
How much of your available credit you're using. A $500 balance on a $2,000 limit is 25%. A common guide is to stay under about 30%.
Learn it hands-on: Build your creditDebt management plan
A voluntary plan set up by a non-profit credit counsellor. You make one payment to the agency, which pays your creditors. You repay what you owe, often with interest reduced or waived.
Learn it hands-on: Get out of high-interest debtDisability Tax Credit
A non-refundable tax credit for people with a severe and prolonged impairment. Approval is also the gateway to other supports, including the Canada Disability Benefit.
Learn it hands-on: Get the benefits you're owedEmergency fund
Money set aside for surprises, like a repair or a gap in income, so they don't go on a credit card. FinLII calls it a safety buffer.
Learn it hands-on: Take control of everyday moneyFirst Home Savings Account (FHSA)
A registered account for first-time home buyers. Contributions are tax-deductible, and qualifying withdrawals to buy a first home are tax-free. You can contribute up to $8,000 a year, to a lifetime limit of $40,000.
Learn it hands-on: Take control of everyday moneyFraud alert
A note on your credit file asking lenders to take extra steps to confirm it's really you before opening credit. Ask Equifax and TransUnion to add one.
Learn it hands-on: Protect yourself from fraudHard inquiry
A check of your credit file when you apply for credit. Several in a short time can lower your score.
Learn it hands-on: Build your creditLicensed Insolvency Trustee
A federally licensed professional who can file consumer proposals and bankruptcies, the only professionals allowed to do so in Canada.
Learn it hands-on: Get out of high-interest debtLow-cost bank account
A basic chequing account that 14 banks have committed to offer for no more than $4 a month. Since December 2025, newcomers in their first year and some other groups qualify for a $0 account.
Learn it hands-on: Take control of everyday moneyMinimum payment
The smallest amount you must pay on a credit card each month. Paying only the minimum keeps the account in good standing but can take many years to clear the balance. In Quebec, the minimum is at least 5% of the balance.
Learn it hands-on: Get out of high-interest debtNeeds and wants
Needs are what you must pay to live and work, like housing, food and transportation. Wants are everything else. The line can be a judgment call.
Learn it hands-on: Take control of everyday moneyNotice of assessment
The CRA's summary of your tax return after it's processed, including any refund or balance owing.
Learn it hands-on: Get the benefits you're owedNSF fee
A fee for a payment that bounces because there isn't enough money in your account. Since March 12, 2026, it's capped at $10 on personal accounts, with no fee if you're short by less than $10.
Learn it hands-on: Take control of everyday moneyOverdraft protection
A service that covers payments when your account would go below zero, usually for a monthly or per-use fee plus interest.
Learn it hands-on: Take control of everyday moneyPayday loan
A small, short-term loan due on your next payday. The legal maximum cost is $14 for every $100 borrowed, which works out to about 365% a year.
Learn it hands-on: Take control of everyday moneyPhishing
A message pretending to be from a trusted organization to trick you into clicking a link, sharing information or paying. By text, it's often called smishing.
Learn it hands-on: Protect yourself from fraudRegistered Retirement Savings Plan (RRSP)
A registered account for retirement saving. Contributions reduce your taxable income now, and withdrawals are taxed as income later. Your contribution room is based on your earned income.
Learn it hands-on: Take control of everyday moneySecured credit card
A credit card backed by a deposit you make, which usually sets the limit. It can help newcomers and people rebuilding credit start a record of on-time payments.
Learn it hands-on: Build your creditSecurity freeze
A block on your credit file that stops new credit being opened in your name until you lift it. In Quebec and Ontario, it's free by law.
Learn it hands-on: Protect yourself from fraudSnowball method
Paying off debt by making every minimum payment, then putting extra money on the smallest balance first. The quick wins help many people stick with it.
Learn it hands-on: Get out of high-interest debtSocial Insurance Number (SIN)
Your nine-digit number for work, taxes and government benefits. Share it only when it's legally required, such as with your employer, your bank or the CRA.
Learn it hands-on: Protect yourself from fraudSoft inquiry
A check of your credit file that doesn't affect your score, such as when you check your own report.
Learn it hands-on: Build your creditSpending plan
A budget: a plan for where your take-home pay goes each month, made before the month begins.
Learn it hands-on: Take control of everyday moneyTax-Free Savings Account (TFSA)
A registered account where savings and investment growth aren't taxed, and withdrawals are tax-free. Contribution room builds each year from age 18, and unused room carries forward.
Learn it hands-on: Take control of everyday moneyTwo-step verification
A second check, like a code sent to your phone, when you sign in. It stops someone with your password from getting into your account.
Learn it hands-on: Protect yourself from fraudNo terms match. Try a shorter word, or ask a free, neutral service.
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