Finance
Finance isn’t just a word, it’s a profession, an industry and a way to make money sound intimidating. But the principles of finance are actually pretty simple. Educate yourself on them, and you’ll be in your way to mastering the art of money.
How to Make a Budget
It's never too late to learn one of the most essential life skills: making and sticking to a budget. Let us show you how to budget like a champion.
How to Switch Banks
If your current bank isn’t meeting your needs, it’s time for a change. These steps will teach you how to switch banks.
What’s a good credit score?
Here’s the simple, three-digit answer you’re likely seeking. Anything above 700 is considered a “good” credit score.
Wealthsimple is investing on autopilot.
Get StartedOther resources
Learn more about finance
Visa vs Mastercard
4 min read
Visa and Mastercard are two of the most famous and recognized payment systems in the world. But what do they actually do, and is there any difference between the two?
Estate Planning in Canada
10 min read
Estate planning in Canada follows many of the same rules and conventions as estate planning in other countries. As with estate planning anywhere else, the goal is to accomplish at least two goals: distribute your assets according to your desires and minimize tax liabilities.
How to Make a Budget
9 min read
It's never too late to learn one of the most essential life skills: making and sticking to a budget. Let us show you how to budget like a champion.
Current Ratio Explanation & Example
7 min read
The current ratio is a measure of a business’ liquidity, which is its ability to pay its short-term liabilities with its current assets.
Guaranteed Income Supplement Explained
8 min read
If you live in Canada and are nearing retirement age, you may be eligible for the Guaranteed Income Supplement. Here’s what you need to know.
Employment Insurance in Canada
5 min read
Employment insurance is a government program that ensures you’re financially supported if you lose your job. Here’s who’s eligible, and how you can apply.
Capitalism Explained
10 min read
Capitalism is an economic system where private individuals own the means of production and where production levels are based on free market competition.
Budgeting: What It Is and How to Do It
9 min read
Even learning about budgeting can be overwhelming and scary, especially for someone who’s never delved into their finances. But it's essential. Read more to discover what budgeting entails, how many different kinds of budgets there are, and how to set up a budget.
Financial Planning: The Ultimate Guide
8 min read
Financial planning may sound intimidating—there’s a lot to cover, after all, including budgeting, retirement planning, and debt management. But it isn’t just a subject for money experts; anyone can get a firm grasp of all the concepts involved. This guide will give you insight into how to design your financial life for maximum sustainability.
The Ultimate Guide to Money Management
13 min read
Managing your money is deceptively difficult. Even those with a lot of it can easily put themselves in a financial hole. And those who struggle to make ends meet have an even more difficult time making sure all their needs—both current and future—are covered.
How to Prepare for a Recession
8 min read
The threat of recession is always with us. Some experts think one may be coming soon. So let’s talk about how to prepare for a recession.
Is It Safer to Save My Money Rather Than Invest It In the Stock Market?
2 min read
Should you save or invest your money? In this article, we help you understand whether it’s best to save or invest your money.
What Is Inflation Rate in Canada 2022 | Wealthsimple
6 min read
Understanding how inflation affects your finances will help you make informed decisions regarding saving and investing your money in the long run. If you’re unaware of how inflation affects your money, you could inadvertently make decisions that cause you to lose money or miss out on opportunities to grow your money.
What is Fintech? Explanation & Examples
9 min read
Fintech is a word that combines the terms “financial” and “technology” and has come to refer to any company that seeks to use new technology to disrupt the financial services industry. Learn more here.
Debt-to-Equity Ratio Explained
7 min read
The classical definition of the debt-to-equity ratio is a company’s total liabilities divided by its shareholder’s equity. Another version of this calculation takes only the company’s long-term debt divided by shareholder’s equity.
A Definition of Times Interest Earned
5 min read
Times interest earned is a ratio that measures the company’s operating income in comparison to the amount of interest paid on its debt obligations. This guide will show you how it works.
What is Time Value of Money?
5 min read
The time value of money is a concept often used in capital budgeting to evaluate two or more projects. This guide will help you understand how this important concept is applicable to your investments.
Leverage: Explanation, Example & Pros & Cons
8 min read
Financial leverage is a powerful investment tool for businesses and investors, but it comes with its own risks.
Gross Margin: Definition, Ratio & Example
7 min read
Let’s dissect the topic of gross margin so you can understand how to use this important business tool, or at least so you can name-drop it at parties, such as by responding to “how’s business?” with “our gross margin is solid.”
Debt to Income Ratio Explained
8 min read
Your debt-to-income ratio explains how much of your income is used to service debts. It helps determine if you’re in a financial position to borrow money.
Why Is Sustainability Important for Investing?
5 min read
Sustainability is a practice that is becoming increasingly important to consumers, investors, and businesses. But how does it actually work?
How To Improve Your Credit Score In Canada 2022
8 min read
A credit score merely tells lenders how trustworthy you are as a borrower. Here’s some tips on how to bump up your score to help get the best interest rates
Balance Sheet Explained with Examples
6 min read
A company’s balance sheet shows the company’s assets, liabilities and shareholders’ equity at a specific point in time.
A Guide to Peer-to-Peer (P2P) Lending
5 min read
Peer-to-peer lending has increased in popularity as an alternative to more traditional leanding approaches, such as bank loans and credit cards. It cuts out the middleman by connecting investors with potential borrowers.
Top 10 Personal Finance Podcasts
6 min read
A look at the best personal finance podcasts and what they can teach you about saving and investing your money.
What is Net Income? Learn the Basics
7 min read
Net income is revenue minus expenses, interest, and taxes. Here’s what you need to know about net income and why businesses and individuals pay close attention to it.
The Ultimate Guide to Credit Scores in Canada
6 min read
A credit score, also referred to as a FICO or Beacon score, or is a number that corresponds to any Canadian like yourself who’s ever made any kind of transaction using credit. Find out everything you need to know below.
Collateral Definition & Explanation
5 min read
Collateral is any property or asset that is given by a borrower to a lender in order to secure a loan. This guide will show you how collateral is defined as an assurance that the borrower will repay the lender the amount owed, plus interest.
What are Brokerage Fees and How Do They Work?
7 min read
A brokerage fee, also called a broker fee, is a fee charged by a broker. Learn everything about it here.
How to Incorporate a Business in Canada
9 min read
Knowing how and why to incorporate your business in Canada can help you establish a good foundation for your enterprise.
Cash Flow Statement Explanation & Example
6 min read
The cash flow statement is one of three key financial statement for a company. The others: income statement and balance sheet. The changes in cash flow for the period covered by the statement generally come from information found in the income statement and balance sheet.
Trust Funds Explained
8 min read
Whenever you hear the word trust fund, you might envision some spoiled kid who’ll never have to work a day in their life. You might think trust funds are just for the ultra-wealthy. But as with so many personal finance topics, it’s more complicated than that.
What to Know About Old Age Security
7 min read
OAS is a universal benefit funded by general tax revenues. It provides a taxable monthly payment to people aged 65 and over. Learn more here!
A Guide to Annual Percentage Rates (APR)
7 min read
APR is the amount it costs you to borrow money. But did you know that it’s more than just the interest rate? Find out more here.
Revenue: Definition, Calculation & Example
7 min read
What is revenue? With this guide you’ll find out the definition of revenue, how to calculate it, and examples of what constitutes revenue.
Quick Ratio: Definition, Formula & Example
7 min read
The quick ratio measures a company’s ability to meet its current liabilities using only assets that can be converted to cash quickly.
What is a Recession? And How They Happen
7 min read
A recession is a substantial decline in economic activity in a particular region for several months, usually identified by a decline in GDP.
What is Financial Literacy & How to Improve it
6 min read
Financial literacy is an important part of managing your money. This guide will how to improve your financial literacy and manage your money better.
Frugality: Explanation & Top Frugal Living Tips
9 min read
In a world where prices are increasing and wages are stagnating, making extra money or having a side hustle is a major topic right now. It seems like almost everyone has something they do on top of their day job.
What is Equity? Definition & Example
6 min read
Equity is an important factor in determining the financial health of a company. Here’s what it means, and how it’s calculated.
Liquidity - Definition & Ratios
7 min read
Liquidity is the ability to pay short-term financial obligations. Essentially, it explains how easily you can turn your assets into cash.
Disbursement Definition & Explanation
6 min read
Disbursement is the payment of money to a third party in a specific period. This payment can be made directly by the entity that is obliged to pay, or the payment can be made to third parties on behalf of the principal by an agent, such as an attorney.
Income Statement Explanation & Example
7 min read
Investing in stocks requires understanding the companies you’re interested in. And investors should become familiar with three particular financial statements that can reveal a lot about each company’s financial health: the income statement, the balance sheet, and the cash flow statement.
What is APR & How Does it Work?
7 min read
In the market for a new loan or a credit card? Find out what APR is and how does it work so you can pick the right loan for you.
Gross Income Explained
4 min read
Gross income is a basic but crucial financial concept. Understanding it can give you insight into things like how to get approved for mortgages, how income taxes work, and many other financial aspects of your life.
What is Net Worth & How to Calculate
9 min read
Your net worth can be an extremely useful tool in gauging your economic status and overall financial health from year to year. Here’s what it is, and how you can calculate it.
Guide to Achieving Financial Freedom
7 min read
What is financial freedom and how do you reach it? Find out the steps that will help you take charge of your finances and achieve your goals.
What is Deregulation?
5 min read
Deregulation is the elimination or removal of government-enacted controls on a particular industry. Find out more here.
What Does a Financial Advisor Do?
6 min read
A financial advisor will help you meet your short- or long-term financial goals. They’ll give you financial advice and help you execute a financial plan.
How to Switch Banks
4 min read
If your current bank isn’t meeting your needs, it’s time for a change. These steps will teach you how to switch banks.
Opportunity Cost
8 min read
All of our decisions have economic value, even those without a price tag attached to them. The concept of opportunity cost allows you to estimate—and sometimes calculate—that value, so that you can make better-informed decisions. Read on to see how it works.
Leverage Ratio
6 min read
Leverage ratio evaluates a company’s debt levels in relation to its assets, and helps determine whether its assets are sufficient to cover its debt.
What is financial planning?
2 min read
Financial planning is the process of setting your financial objectives. Learn more about financial planning here.
What’s a good credit score?
1 min read
Here’s the simple, three-digit answer you’re likely seeking. Anything above 700 is considered a “good” credit score.
What's the policy interest rate?
1 min read
It's what banks charge one another to borrow money in order to maintain federally mandated cash reserve requirements.
What’s a beneficiary?
1 min read
A beneficiary is a legal term to describe someone who is the recipient of something, be it money or property.
What’s the bank rate?
1 min read
It's the interest rate at which a country’s central bank loans commercial banks money.
How are interest rates set?
1 min read
There are a number of interest rates that may be relevant to you. Find out more below.
What's an annuity?
1 min read
In most cases, it's a way of paying yourself periodically through an insurance company.
What are interest rates?
1 min read
They are how much banks will charge borrowers as well as how much they’ll pay to those who deposit money.