Financial Learning Centre
Glossary
Plain-language definitions for the terms you'll actually encounter — searchable, browsable, and free of unnecessary jargon.
B
C
- Canada Child Benefit (CCB)A tax-free monthly payment from the federal government to help families with the cost of raising children under 18.
- Canada Small Business Financing Program (CSBFP)A federal program where the government guarantees part of a small business loan, making banks more willing to lend.
- Capital Cost Allowance (CCA)The CRA's version of depreciation — an annual tax deduction for the declining value of business assets you own.
- CDSB (Canada Disability Savings Bond)Government money paid into an RDSP for lower-income Canadians, with no contribution required.
- CDSG (Canada Disability Savings Grant)A government grant that matches RDSP contributions, up to 300%, based on family income.
- CESG (Canada Education Savings Grant)A government grant that matches a percentage of RESP contributions, up to an annual and lifetime maximum.
- CFP® / QAFP® CertificationThe two financial planner certifications recognized by FP Canada, and the credentials behind the legally protected 'Financial Planner' title in provinces like Ontario.
- Common-law partnerFor CRA purposes, a partner you've lived with continuously for 12 months, or immediately if you have a child together.
- CPP (Canada Pension Plan)A government retirement benefit funded by contributions made during your working years.
- Credit scoreA numeric score representing creditworthiness, built from your borrowing and repayment history.
- Critical illness insuranceInsurance that pays a lump sum on diagnosis of a covered serious illness, regardless of actual costs incurred.
- CUSMA (Canada–United States–Mexico Agreement)The free trade agreement between Canada, the US, and Mexico that replaced NAFTA in 2020.
D
- Defined Benefit (DB) PensionAn employer pension that promises a specific, calculated income for life, based on salary and years of service.
- Disability insuranceInsurance that replaces a portion of income if illness or injury prevents you from working.
- DTC (Disability Tax Credit)A non-refundable tax credit for Canadians with a severe and prolonged impairment — and the eligibility requirement for opening an RDSP.
E
F
G
I
M
- Marginal tax rateThe tax rate applied to your next dollar of income, not your average rate overall.
- MER (Management Expense Ratio)The annual cost of managing a fund, expressed as a percentage of your investment.
- Minimum paymentThe smallest amount you're required to pay each billing cycle to keep an account in good standing.
- Mortgage insuranceInsurance that pays down or pays off a mortgage balance if the borrower dies or becomes disabled — distinct from mortgage default insurance.
N
O
P
- Pension income splittingA tax election letting a couple allocate up to 50% of eligible pension income to the lower-income spouse or partner.
- Permanent life insuranceLife insurance intended to last your whole life, often with a cash value component.
- Power of AttorneyA legal document that lets someone else make financial or medical decisions on your behalf if you become unable to.
- Pre-authorized debit (PAD)A payment you've authorized a company to automatically withdraw from your bank account on a recurring basis.
- PremiumThe amount you pay, usually monthly or annually, to keep an insurance policy active.
- ProbateThe court process that validates a will and authorizes an estate to be settled, which can delay and cost money.
R
- RDSP (Registered Disability Savings Plan)A registered account that helps Canadians with disabilities save for the long term, with government grants and bonds added on top.
- RESP (Registered Education Savings Plan)A registered account for education savings that attracts government grant money on top of what you contribute.
- RRSP (Registered Retirement Savings Plan)A registered account that defers tax on contributions until withdrawal, typically in retirement.
- RRSP Home Buyers' Plan (HBP)A program letting first-time buyers withdraw RRSP funds tax-free to buy a home, on the condition it's repaid over time.
S
- Savings RateThe percentage of income set aside for the future, rather than spent.
- Segregated fundAn insurance-based investment product with maturity and death-benefit guarantees a mutual fund doesn't offer.
- Super VisaA long-stay Canadian visa for parents and grandparents of citizens or permanent residents, requiring mandatory medical insurance.
T
- TariffA tax a government charges on physical goods imported from abroad, paid by the importer at the border.
- Term life insuranceLife insurance coverage for a fixed period, with no cash value component.
- TFSA (Tax-Free Savings Account)A registered account where investment growth and withdrawals are never taxed.
- Travel medical insuranceInsurance covering emergency medical costs while travelling outside your home province or country.