Column 1
A financial institution that accepts deposits from the public is called
A Bank
What is the first thing you should do if you lose your credit/debit cards?
Freeze your card to prevent someone else from finding your card and making unauthorized purchases.
will accept other similar answers
What is one benefit to budgeting?
You can plan ahead for how much money you will have after expenses, you can see how much money you can save each month, you can plan for unexpected expenses
The money you receive from your job is referred to as:
What is income?
Also accept: wages, salary
If you are taking out a 500 dollar loan would you rather choose a bank with a 3% interest rate or a 5% interest rate?
3%
You would in the end owe less money to the bank with a 3% interest rate than a 5% interest rate
What do you call money that is borrowed and expected to be paid back with interest?
A Loan
The money charged for the privilege of borrowing money.
What is interest?
Something that you spend money on, either one time or regularly.
What is an expense?
The amount someone earns in a year for their job.
What is annual salary?
What type of account can you earn money just by storing your money there?
a savings account
A bank card that automatically deducts the amount of a purchase from your checking account.
What is a debit card?
True or false: it is cheaper to get a loan from a bank or credit union than other financial services (such as payday lenders)
True: payday lenders and other financial institutions often charge much higher interest than banks and credit unions
What are some reasons your credit score will be checked?
A bank is deciding whether to approve a loan for you, an apartment is deciding if they want to approve your application, a credit card company deciding to approve a card for you, a job deciding to hire you (if you will be handling money/valuables).
What do you call the total amount of money you get from your job before taxes?
What is gross income?
A percentage of the amount you borrowed, increasing the total amount you have to pay back in the end.
What is interest rate?
a card issued that is used to make purchases, with the agreement that the cardholder will pay back the card issuer for the cost of the items purchased, along with any agreed upon fees and interest
What is a credit card?
Money owed from one person to another person/an institution
What is a debt?
Johnny really wants the new Playstation 5, which costs 800.00. Johnny has $20.00 in his bank account. However, he just received a credit card with a $2,500 limit. Should Johnny use his credit card to buy a PlayStation? Why or why not?
NO! Johnny should not use his credit card because he does not have enough money in his checking account. A person should never borrow money if they do not have the same amount in their checking account.
What do you call the amount of money you get from your job after taxes are taken from it?
What is net income?
A type of account that allows you to easily deposit and withdraw money for daily transactions
A Checking Account
What is one thing that makes a credit union different from a bank?
Credit unions owned by its users/account holders while banks are private.
Credit unions do not exist to generate profit while banks do make money off of their account holders
Credit unions might want you to fit a membership type (ex. live in a certain location or have a certain occupation) while banks are for anyone and often expand a lot further.
A specific type of loan that is used to buy real estate (a home or other property).
What is a Mortgage?
How might you pay for something that requires a check if you don't have your own personal check book?
A cashier's check or a money order are ways to securely transfer money without cash or card.
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
What is a number that would indicate a good credit score?
Anything 670-850