Account Types
This account is designed for everyday spending, paying bills, and using a debit card.
What is a checking account?
This phrase describes income barely covering expenses, leaving little or no savings.
What is living paycheck to paycheck?
This service lets customers check balances, transfer money, and pay bills through a bank’s website or app.
What is online/mobile banking?
This is how often customers typically receive a checking-account statement.
What is monthly?
Taylor buys an expensive concert ticket because everyone on social media seems to be going. Taylor cannot comfortably afford it but worries about missing the experience. This influence clearly affecting this decision.
What is FOMO?
This is the immediate action to take when you discover ATM withdrawals you did not make.
What is contact the bank?
Buying a popular brand mainly because everyone around you is buying it illustrates this bias.
What is herd mentality?
This account holds money for later and typically pays interest on deposits.
What is a savings account?
This reliable savings strategy moves part of every paycheck into savings without requiring you to remember each time.
What is a automatic savings or automatic transfer?
Apple Pay and Google Pay are examples of this tool that lets you tap your phone to pay at checkout.
What is a digital wallet?
This is the standard FDIC coverage limit per depositor, per insured bank, per ownership category.
What is $250,000
This field studies how emotions, cognitive biases, and social influences affect economic decisions.
What is behavioral economics?
This bank document summarizes your deposits, withdrawals, fees, and balances over a period of time.
What is a bank statement?
A predictable pattern in thinking that can distort judgment and decisions
What is a cognitive bias?
Often shortened to “CD,” this account holds money for a set period and may charge a penalty for early withdrawal.
What is a certificate of deposit?
Saving for a phone next month, college in three years, and retirement in 40 years represents these three goal time frames, in order.
What is short-term, medium-term, and long-term savings goals?
This service sends your paycheck electronically from your employer to your bank account.
What is direct deposit?
Starting with $180, a posted $45 debit purchase and $20 ATM withdrawal leave this balance, assuming no fees.
What is $115?
An emergency fund commonly aims to cover this many months of expenses.
What is 3-6 months?
A bank approves a purchase that exceeds your available balance. You must repay the amount overdrawn and may also pay this charge.
What is an overdraft charge?
Continuing to pay for a game you no longer enjoy because you have already spent so much on it illustrates this bias.
What is sunk cost fallacy?
Of a savings account and a two-year CD, this is generally better for emergency money because it is readily accessible.
What is a savings account?
These three categories receive 50%, 30%, and 20% under the budgeting rule of the same name.
What are needs, wants, and savings?
Sending a friend your share of movie tickets through an app is this type of payment.
What is a peer-to-peer or P2P payment?
DAILY DOUBLE: YOU MAY WAGER UP TO $1,000
Clue: A worker spends $2,000 monthly and wants six months of emergency savings. Saving 20% of a $4,000 monthly paycheck, the worker will reach the goal from $0 in this many months. Ignore interest.
What are 15 months?
This federal insurance protects eligible bank deposits if an insured bank fails.
What is FDIC insurance?
Starting retirement saving early gives your money more time to benefit from this process, in which earnings generate additional earnings.
What is compound growth or compound interest?
Priya wants to buy a particular phone. She reads only positive reviews and ignores information about its problems. Priya is likely exhibiting this bias.
What is confirmation bias?
This feature commonly makes online savings accounts more attractive than traditional savings accounts.
What is a higher interest rate(s)?
What is an emergency fund?
Historically, this investment market has produced higher long-term returns than ordinary savings accounts, while carrying greater risk.
What is the stock market?
This is the standard outcome, when an account WITHOUT overdraft protection attempts to charge more than the account balance.
What is declining the charge?
When inflation is 4% and savings earns 2%, your money experiences this loss, even if the dollar balance grows.
What is purchase power?
With $1,500 in monthly expenses, a six-month emergency-fund goal, and $300 saved monthly, reaching the goal from $0 takes this long. Ignore interest.
What are 30 months?
Refusing to sell your used bicycle for a fair price because owning it makes it feel especially valuable illustrates this bias.
What is endowment effect?