HUMMINGBIRD ABORIGINAL STUDENT FUTURES
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Common Financial Words

There can be a lot of jargon thrown around when it comes to financial matters. Below are a few of the most common financial words you will hear when talking about RESPs.


Principle:

The money you put into your RESP or savings account.

Interest:

The money the bank pays you on the principle you put into your account. Currently the interest the bank pays is about 0.05% to 3.0% depending on the account. You also pay interest when you borrow money or carry a balance on your credit card.

Earnings:

Money that you are paid on your principle. This money can be interest, dividends or capital gains, depending on what kind of investment you have.

RESP subscriber:

The person who opened the RESP.

RESP beneficiary:

The person who the RESP money is for.

RESP provider:

The Bank, credit union or group plan provider where you open your RESP.