A small money glossary
Plain meanings for terms used across these guides. Follow a term’s guide for the rules, examples and primary sources.
- Adjusted family net income
- The income measure used for some benefits, built from the relevant tax-return amounts and specified adjustments. It is not simply the latest pay deposit. Family benefits and credits: where to start
- Amortization
- The scheduled time to repay a loan through its payments. A mortgage term is a different period. Amortization vs term: two different mortgage clocks
- Beneficiary
- The person named to benefit from an arrangement. In an RESP, this is the intended education recipient; plan and benefit rules still apply. RESP basics: whose money is in the plan?
- Cash flow
- Money coming in and going out, including its timing. A positive monthly total can conceal an earlier shortage. Income and cash flow: the amount and the timing
- CCB
- Canada child benefit: support for eligible caregivers of children under 18. Income, care, residency and status conditions affect it. Family benefits and credits: where to start
- CESG
- Canada Education Savings Grant: a benefit linked to eligible RESP contributions, with annual, lifetime and age-related rules. CESG: the basic grant, catch-up room and additional help
- CGEB
- Canada Groceries and Essentials Benefit: the federal programme that replaced the GST/HST credit in July 2026. Family benefits and credits: where to start
- CLB
- Canada Learning Bond: RESP support for eligible beneficiaries that does not require personal contributions. Canada Learning Bond: education savings when money is tight
- Compound growth
- Growth calculated on an amount that includes earlier growth. Losses, fees and contribution timing also affect the balance. Time and compounding: separate deposits from growth
- Contribution room
- The amount you may put into an account under its rules. It is not the same as the market value inside the account. TFSA basics: room, withdrawals and what you hold
- Credit report
- A record of credit accounts and their history. Inspect the underlying information rather than relying only on a score. Credit reports, scores and credit cards
- Credit score
- A numerical assessment derived from credit information. Different lenders or models can produce different scores. Credit reports, scores and credit cards
- Deduction
- An eligible amount subtracted in calculating taxable income. Its tax effect is not automatically equal to the deduction. RRSP basics: contributions, deductions and withdrawals
- Emergency reserve
- Accessible money set aside for disruption or unexpected costs, distinct from money already promised to known bills. Emergency funds: what needs protecting?
- FHSA
- First Home Savings Account: a registered account with separate opening, participation and qualifying home-withdrawal conditions. FHSA basics for a first home
- Gross pay
- Pay before deductions. Net pay is the amount left after deductions. Understanding your Canadian paycheque
- Inflation
- An increase in prices over time. A future dollar amount may buy less than the same number of dollars today. Return assumptions: make the uncertainty visible
- Interest
- A charge for borrowing or an amount earned under a deposit or investment arrangement. The rate and calculation convention both matter. How a mortgage works: principal, interest and payments
- Liquidity
- How readily you can access money when needed, considering sale time, restrictions, costs and possible loss. Investment risk: what could go wrong, and when?
- MER
- Management expense ratio: recurring fund expenses expressed relative to assets. Published fund returns generally already reflect this embedded cost. Investment fees: what those percentages cost
- Net pay
- The amount remaining after payroll deductions, usually the deposit available for your bills. It is not a final annual tax calculation. Understanding your Canadian paycheque
- Nominal dollars
- Money amounts without adjusting for changes in purchasing power. Real-dollar comparisons account for an inflation assumption. Return assumptions: make the uncertainty visible
- Pension
- An arrangement providing retirement income under its rules. Contribution-based, residence-based and workplace arrangements differ. CPP/QPP, OAS and workplace pensions: the pieces of retirement income
- Principal
- The amount of a loan still owed, apart from interest charged for the period. A payment can include both. How a mortgage works: principal, interest and payments
- Registered account
- An account or plan governed by particular tax rules. The registration does not itself determine investment risk or return. RRSP vs TFSA: compare the account rules
- RESP
- Registered Education Savings Plan: an education-saving arrangement with contributions, possible government benefits and investment earnings. RESP basics: whose money is in the plan?
- RRSP
- Registered Retirement Savings Plan: contributions may be deductible within applicable rules, while ordinary withdrawals are generally taxable. RRSP basics: contributions, deductions and withdrawals
- Statement balance
- The card balance at the statement date. Later transactions can make the current balance different. Credit reports, scores and credit cards
- Surplus
- Money left after the costs and commitments included in your calculation. Missing irregular bills can make it look larger than it is. What could a monthly surplus do for you?
- TFSA
- Tax-Free Savings Account: eligible holdings within an account whose income and ordinary withdrawals are generally tax-free in Canada. Contributions still require room. TFSA basics: room, withdrawals and what you hold
- Time horizon
- How long until you need the money. A distant goal does not remove investment risk. Time and compounding: separate deposits from growth
- Variable rate
- An interest rate that can change under the contract. Whether the payment changes at the same time depends on the product. Fixed vs variable: what can change in your mortgage?