Clear explanations without jargon or pressure.

The yearly cost of borrowing money.

Example: 20% APR on $1,000 ≈ ~$200/year (roughly).

Why it matters: Carrying a balance gets expensive fast.

Pay minimums on everything, attack the highest interest rate debt first.

Example: You have a 29.99% store card and a 20.99% credit card. Avalanche targets the store card first, then the credit card; regardless of the balances.

Why it matters: Mathematically optimal. Minimises total interest paid and gets you debt-free faster than any other approach.

Returns that earn returns.

Example: Growth stacks on top of growth over time.

Why it matters: Time is the cheat code.

The official measure of how much prices are rising across a standard basket of goods and services.

Example: Canada's CPI rose 2.4% year-over-year in March 2026, meaning that basket cost 2.4% more than it did in March 2025.

Why it matters: CPI is how inflation gets reported. It drives Bank of Canada rate decisions, which flow through to your mortgage rate, your savings account rate, and your investment returns.

How much of your credit limit you're using.

Example: $300 used on a $1,000 limit = 30%.

Why it matters: Lower utilization usually helps your score.

The free trade deal that lets most Canadian goods cross into the US without paying extra tariffs.

Example: A Canadian auto part that meets CUSMA's rules of origin skips the 10% US import tariff. One that doesn't pays it.

Why it matters: Right now, CUSMA compliance is the difference between a 0% and a 10% tariff for most Canadian exporters. It directly affects what things cost at the store.

A basket of investments you buy like a stock.

Example: 1 ETF can hold hundreds of companies.

Why it matters: Easy diversification without picking winners.

A “lock-it-in” investment where you lend money to a bank for a set time and get a guaranteed interest rate.

Put $1,000 into a 1-year GIC at 5% → after 1 year you get about $1,050 (before tax, if it’s in a non-registered account).

Why it matters: A GIC gives you predictable, low-risk growth but the trade-off is reduced access to your money until it matures.

The window between your credit card statement date and your payment due date where no interest is charged on purchases.

Example: Your statement closes May 1st. You have until May 21st to pay the balance in full and owe zero interest on anything you bought that cycle.

Why it matters: Pay in full before the grace period ends and a credit card costs you nothing in interest. Carry a balance past it and you start accruing at 19.99%+.

When the general price level rises and your dollar buys less than it used to.

Example: If inflation runs at 3% and your savings account earns 2%, you are effectively losing purchasing power every year even though your balance is going up.

Why it matters: Inflation is the invisible tax on cash. It's why leaving everything in a chequing account long-term is actually a losing strategy.

Textbook definition: The ease and speed with which an asset can be converted into cash.

Cash is fully liquid, something like a PS5 has cash value, but needs to be sold first.

Why it matters: Your emergency fund should be liquid; investments or “stuff” can take time to cash out.

Not enough money for a payment.

Rent tries to pull, account is short → bounce + fee (RBC charges $45).

Why it matters: Fees stack + can trigger more failed payments.

A student loan program that can lower your monthly payment (and in some cases pause it) if your income is low relative to your expenses.

You finish school, your payment is $220/month, but you’re only working part-time. RAP can reduce that payment to something manageable while you get stable income.

Why it matters: It can prevent missed payments (and credit damage) while you’re in that “new grad / broke student” phase.

Adjusting your portfolio back to its original target mix.

Your plan is 50% Canadian, 50% international. Canada outperforms and drifts to 60/40. Rebalancing sells some Canadian and buys international to get back to 50/50.

Why it matters: Without it, your portfolio slowly becomes riskier than you want. All-in-one ETFs like XEQT do this automatically.

Pay minimums on everything, attack the smallest balance first.

Example: You have $400 on a store card and $3,000 on a credit card. Snowball clears the $400 first for a fast win, then redirects that payment to the credit card.

Why it matters: Less efficient than avalanche mathematically, but the momentum from fully clearing a debt keeps a lot of people on track long enough to finish.

A tax a government puts on imported goods (sometimes exports), usually to make foreign products more expensive.

A 10% tariff is imposed to a $100 imported item, the importer may pay $10 extra, and the price in stores can rise.

Why it matters: Tariffs can push up prices (inflation pressure), affect what companies earn, and even influence jobs in certain industries.

How much a price goes up and down over time.

Stock A moves between $90–$110 in a month (high volatility). A savings account stays at $100 (low volatility).

Why it matters: More volatility = bigger swings (riskier short-term), so match it to your time horizon.