Amount of money you keep and do not spend. A good rule of thumb is to put money into savings before making any purchases.

People who do not save will be in constant debt their whole lifetime and both their quality of life and opportunities will decline.

Credit Card

A credit card allows  people to make purchases on credit and pay later, usually at the end of the of the month. A limit is set on the credit card and the user  cannot spend over the limit. A typical limit on a credit card is $5000 or more.

Many people will underestimate how much money they are spending on their card, which often results in overspending. 

Credit cards are also very convenient  and are usually used to make Internet purchases.

Credit card companies usually do not require the card holder to pay the full amount owing. The amount you have to pay is called the minimum payment... usually a very small amount compared to the balance. Credit card companies make money when you do not pay off the full amount because of the high interest costs.

Be Bird Smart - always pay off your credit card at the end of the month.


An extra amount you have to pay back on a loan or outstanding credit card balance. Interest is calculated by multiplying the interest rate times the balance. If you used a credit card and had a $ 5000 balance for one year at 20 percent your interest payment is $1000 per year.

Be Bird Smart avoid high interest charges !

Student line of credit
An account where students can withdraw money up to a certain amount (example $10,000). Usually these accounts need a cosigner who will guarantee that the money will be paid back. The advantage of student line of credits is that the interest rate is cheaper than loans or credit cards.

Be careful with a student line of credit. If you get into debt too much it could take you decades to pay it off !

Be Bird Smart minimize your debt when you go to post secondary school.


 A Budget is a plan that outlines a person’s saving and spending goals. A good budget allows people to save and spend more effectively and overall helps improves their quality of life. Be Bird Smart and Get a Budget Chirp Chirp

Impulse Buying
Spur of the moment, unplanned decision to buy usually caused by emotions and feelings. Advertising plays a large role in impulse buying. Such purchases range from small (chocolate, clothing, magazines) to substantially large (jewelry, vehicle, expensive shoes) and often lead to problems such as financial difficulties, family disapproval, or feeling of guilt or disappointment.

Be Bird Smart know what you want to buy before you go shopping and do not buy extras on emotion.


An increase in the price you pay for goods and services.

In 1962 a McDonalds hamburger was 15 cents the same hamburger now is three dollars. The inflation rate per year in Canada is about 3 percent.

Inflation causes a decline in the purchasing power of your money.

Roger Nevin,
Mar 23, 2012, 12:01 PM