The checking's in the saving
This type of account is mainly for everyday spending and paying bills.
What is a Checking account
A fee might you pay when you use an ATM your bank doesn’t own.
What is an Out-of-network ATM fee.
A person who has no checking or savings account?
What is Unbanked?
Money set aside for unexpected expenses like a car repair or a job loss called?
What is an emergency fund? I will accept savings account
Name two peer-to-peer (P2P) payment apps.
Venmo, Zelle, Cash App, or PayPal
On a bank statement, you call money that is added to your account this.
What is a deposit (credit)
A fee charged when your balance drops below a required amount, and one way to avoid it.
What is a Monthly maintenance (minimum balance) fee. Keep your balance above the minimum, set up direct deposit, or choose a no-fee account
Someone who has a bank account but still uses check cashers or payday lenders?
What is Underbanked?
The number of months worth of expenses experts commonly recommend keeping in an emergency fund.
What is 3 to 6 months? I'll accept any number of months within the range as well.
What is the mobile banking feature that lets you deposit a check by taking a photo of it?
Mobile (remote) deposit
The actual interest you earn in a year, including compounding.
What is APY (Annual Percentage Yield)
When you make a purchase for more money than you have in checking.
What is you overdraw the account. The bank either covers it and charges an overdraft fee or declines the purchase.
Name two reasons someone might be unbanked.
Not enough money to meet minimums, distrust of banks, high or unpredictable fees, lack of ID, past account problems, or no nearby branch
When you value a reward now more than a bigger reward later.
Present bias (instant gratification)
What is a digital wallet, and give one example.
An app that stores your card information so you can pay with your phone. Examples: Apple Pay, Google Wallet, Samsung Pay.
A statement shows a beginning balance of $450, a $300 deposit, and withdrawals of $125 and $60. What is the ending balance?
$565
You have $20 in checking. You spend $5 on coffee, $8 on lunch, and $12 on gas. The overdraft fee is $35 per transaction. What is your final balance?
–$40. Only the gas purchase overdraws the account, so you get one $35 fee:
$20 - $5 = $15
$15 - $8 = $7
$7 - 12= -$5
-$5 - $35(Overdraft fee) = -$40
Give one pro and one con of getting paid on a payroll card.
Pro: no bank account needed and quick access to your pay.
Con: fees for ATM use, balance checks, or inactivity.
Your monthly expenses are $1,800. How much do you need for a 3-month emergency fund, and how long will it take to save if you put away $300 a month?
$5,400, which takes 18 months
Why is it risky to send money through a P2P app to someone you don’t know?
Payments are often instant and can’t be reversed, and you get fewer fraud protections than with a credit card
Name two ways a money market account differs from a regular savings account.
It usually pays a higher interest rate, requires a higher minimum balance, and may allow limited check writing.
What is the difference between opting out of overdraft coverage and linking your savings account for overdraft protection?
Opting out: purchases are declined, so no fee.
Linking savings: money moves from savings to cover the purchase, usually for a smaller transfer fee or none.
Which region of the U.S. has the highest unbanked rate, and what is one possible reason?
The South. Possible reasons include lower incomes and fewer bank branches in rural areas (“banking deserts”).
Why should an emergency fund be kept in a savings account instead of stocks or a CD?
You need quick access (liquidity) with no penalty, and the money shouldn’t lose value right when you need it
Name two advantages of online-only banks and one drawback.
Advantages: higher interest rates, lower fees, and 24/7 access. Drawbacks: no physical branch, and it’s harder to deposit cash.