Everyday Spending
This safe bank account acts like a digital wallet where you keep money you plan to spend very soon on groceries or bills.
What is a checking account?
This safe bank parking spot holds money you don't plan to spend immediately and separates it from your daily cash.
What is a Savings Account?
When you swipe this specific type of card, you are spending the bank's money up front instead of your own.
What is a Credit Card?
This massive, long-term loan is used exclusively to purchase physical real estate properties like houses or offices.
What is a Mortgage?
This key principle states that when you save money the bank pays you interest, but when you do this, you must pay the bank interest.
What is borrowing?
This plastic item acts as a physical key to your checking account, deducting money immediately from your balance when swiped.
What is a Debit Card?
To reward you for keeping your money safely sitting in a savings account over time, the bank pays you this extra percentage.
What is interest?
This is when you receive a bill from your credit card company detailing exactly what you borrowed and owe.
What is the end of the month?
This specialized type of loan provides upfront cash explicitly to buy a car, truck, or commercial delivery van.
What is an Auto Loan?
This tax-advantaged retirement savings plan is sponsored and set up directly for you by an employer.
What is a 401(k)?
This is the typical amount of interest a standard checking account pays because your cash is constantly moving in and out.
What is little to no interest? (Accept: 0%)
This is what "CD" stands for when talking about a locked bank account that pays higher interest rates.
What is a Certificate of Deposit?
If you pay your entire credit card statement balance immediately when the bill arrives, borrowing the money costs you this much.
What is zero dollars? (Accept: It's free / no interest)
Because land and buildings are incredibly expensive, mortgages are usually paid back over long horizons of either of these two standard year limits.
What are 15 or 30 years?
This is what "IRA" stands for when talking about a personal retirement account you open completely on your own.
What is an Individual Retirement Account?
This written paper financial document allows you to safely transfer money out of your checking account to a specific payee.
What is a check?
If you need to pull your cash out of a Certificate of Deposit before your 1-year or 5-year timeline is up, the bank hits you with this.
What is a penalty fee?
Failing to pay back your credit card bill on time forces you to owe massive extra fee rates known as this.
What is high interest?
This specific category of borrowed money pays for higher education tuition and textbooks, and typically doesn't require payback until after graduation.
What is a Student Loan?
This valuable employee benefit occurs when a company gives you free extra cash to match the percentage you contribute into your 401(k).
What is a company match? (Accept: employer match)
If you try to spend $12 at a checkout counter but your checking account only holds this amount, a standard debit card transaction will be declined.
What is less than $12? (Accept: $11.99 or lower / an insufficient balance)
This is the main operational difference between a regular savings account and a CD regarding how freely you can access your cash.
What is locking your money untouched for a set period in a CD versus pulling it out freely in
savings?
Unlike a debit card which stops you when your wallet is empty, a credit card allows you to borrow cash all the way up to this predetermined amount set by the lender.
What is a credit limit?
If you stop paying your auto loan, the bank can repossess your car because the physical vehicle serves as this security term for the lender.
What is collateral? (Accept: security)
This action involves placing money into long-term assets with higher risk for greater growth potential, while this alternative action keeps cash safe with low, guaranteed returns.
What is investing versus saving?