Personal Finance unit 4

Bonus: Min. Wage Yukon

17.94$

Bonus: Min. Wage NW territory

16.70

Bonus: Min. Wage Nunavut

19.00

Bonus: Min. Wage BC

17.40

Bonus: Min. Wage Alberta

15.00

Bonus: Min. Wage Sask

15.00

Min. Wage Manitoba

15.80

Bonus: Min. Wage Ontario

17.20

Bonus: Min. Wage Quebec

15.75

Bonus: Min. Wage NF&L

16.00

Bonus: Min. Wage PEI

16.00

Bonus: Min. Wage Nova Scotia

15.70

Bonus: Min. Wage New Brunswick

15.65

Nunavut Prices Bonus

Define CPP

Canadian Pension Plan

Percentage paid by employees and employers to provide income when workers retire or become disabled. Your employer matches it and submits on your behalf.

How to calculate CPP

5.95% of tax.salary or X 0.0595

Magic number 65,000$

MAX: 3,867.50$

Define EI

Employment Insurance

Deducted by to provide temporary payments for unemployment workers.

Matched by employer

Self- employment people can’t collect so they don’t contribute

How to calculate EI

1.66% of tax.salary or X 0.0166

Magic number: 63,200$

Max. 1,049.12$

Highest category on wage chart

Management occupations

Lowest category on wage chart

Sales and service occupations except management

What is Simple Interest

Added to the principal (money deposited)

What is Compound Interest

Added to principle plus previous interest

3 types of Commsion

Straight commission

Base plus commission

Draw against commission

Straight commission definition and example

No guaranteed pay ex. Real estate/ Realtor

Base plus commission

A base pay plus commission on items you sell. Ex. Waiters (tips)

Draw against commission

means your employer gives you a regular paycheck, even if you haven’t earned that much in commission yet. It’s like getting an advance on the money you’ll make later from sales. This helps you have a steady income. It’s common for jobs like teachers, pool workers, or people who sell Christmas trees during the holidays.

Vacation pay meaning and %

Additional 4%

Full time workers get about 2 weeks of paid vacation each year. For casual or part time workers vacation pay is added to each paycheque.

Advantages of employment

Make money

Health benefits

Stability

Social connection

Disadvantages of employment

Less quality time

Stressful

Advantages of saving earned money that you don’t owe to anyone

Emergency safety money

Earn interest (no effort)

Disadvantages of saving earned money that you don’t owe

Tempting to spend

Slow interest

Advantages of investing including borrowing money to invest

Potentially make more money than savings

Mostly low effort except for stocks

Stocks = high effort

Disadvantages of investing

Can lose money

Take long time (patience)

Not liquid (not yours)

Advantages of lending money with interest

Making money with interest

Good socially (helping people)

Disadvantages of lending money with interest

Might lose your money

You don’t have money for emergencies

Advantages of social programs to help through difficulties

You get money when you are in need

You don’t work for it

Disadvantages of social programs to help through difficulties

Temporary and requires lots of proof

You only get enough to survive

Social stigma

How to calculate the money you keep from paycheque

Net pay/ Tax. Salary

Dates of getting payed monthly

12 times

1-31/30

Dates of getting payed biweekly

26 times

1-14 or 15-31/30

Dates of getting payed twice a month

24 times

Ends in 15 or 31

Dates of getting payed weekly

52 times

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