Banking
What type of bank account is used for daily spending and is usually connected to a debit card?
Checking Account
Credit cards are an example of which type of credit?
(Revolving, Open, Installment)
Revolving (borrowed on an ongoing basis and paid off monthly)
This is a plan for what your money will do before it arrives.
What is the only type of insurance that is required in Illinois?
What type of bank account usually collects more interest, but generally limits the amount that you can withdraw at one time?
Savings Account
What is a credit score, and how do you improve one?
Number from 300-850 that ranks your creditworthiness to lenders; paying off your loans on time can raise your score.
This type of pay is the amount you actually take home after deductions and should be used when creating a budget.
Net Pay
Which type of insurance helps someone's family cover expenses in the event that they pass away?
Life Insurance
What is the difference between a debit card and a credit card?
Debit = connected to your bank account (money you already have)
Credit = money borrowed from a credit company that must be paid back
Car loans, student loans, or a home mortgage are considered what kind of credit? (Revolving, Open, Installment)
Rent, car payments, and insurance are examples of these expenses because their amounts are generally predictable.
Fixed Expenses
What is an insurance premium?
The amount of money you pay for a policy in a given cycle (month, year, etc.)
What are TWO fees that you can be charged by a bank?
Out-of-network ATM, overdraft fee, minimum balance
1. What is the term for an asset that is pledged as security for a loan, and which may be taken if the borrower defaults?
2. What is the term for a person who signs a loan jointly with someone else and agrees to be responsible if the other person defaults?
1. Collateral
2. Co-Signing
Under the 50/30/20 rule, this percentage of take-home pay is allocated to wants such as entertainment, dining out, and hobbies.
30%
1. What are two examples of risk factors that may affect the cost of home insurance?
2. What are two examples of risk factors that may affect the cost of car insurance?
1. Size of home, location, proximity to fire/police, construction features, etc.
2. Age, gender, accident history, type of car, years of driving experience, safety features, etc.
2. What is autopay, and what is one benefit of using it? (250 pts)
1. Your paycheck is deposited directly in the bank; much safer.
2. Your bills are paid automatically out of your bank account; no late payments.
What are two possible consequences of defaulting (not paying) your credit loan?
1. Under the 50/30/20 rule, what percentage of your income should go to needs?
2. Under the 50/30/20 rule, what percentage of your income should go to savings?
1. 50%
2. 20%
What are three ways in which you can potentially reduce the cost of insurance?
Don't live in high-risk areas, buy cars with more safety features, work in "safe" professions, avoid traffic violations, improve personal (health) habits, etc.