The Basics
To take money out of an account.
What is a withdrawal?
An electronic card issued by a financial institution that allows a customer to access their account to withdraw cash or pay for goods and services.
What is a debit card?
Justin creates a ________ to help him estimate the amount of money he is receiving and the amount of money he will be spending.
What is a budget?
What are two advantages of using a credit card?
What is build a credit history, have money for emergencies, take advantages of sales, order online?
Banks have three main purposes. They borrow money, the loan money, and they.....
keep your money safe.
An account at a financial institution that allows for withdrawals and deposits.
What is a checking account?
Name two factors people might consider when choosing a bank?
Location, convenience, rates, fees.
Explain the 50/20/30 Rule.
50% of take home pay to fixed expenses; 20% of take home pay goes towards savings; no more than 30% goes to wants
True of False:
If you pay the total balance on your credit card each month, you will not be charged interest?
True
The limit of money deposited in a bank that is insured by the FDIC.
What is $250,000.
A deficit in a bank account caused by drawing more money than the account holds.
What is an overdraft?
This type of account is a blend between a checking and savings account where you only need limited access to the money each month.
What is a money market account
Two types of _______ are government and corporate.
What is a bond?
What does your credit card company do when you don't pay your credit card bill on time?
a) charge you a finance charge
b) charge you a late fee
c) a and b
c) a and b
Name 4 tips to avoid identity theft.
Don't give out any account information, watch out for account irregularities, shred sensitive information, report fraud immediately.
Which of the following is a want not a need?
a) shelter
b) food
c) cell phone
d) medicine
What is a cell phone?
What is the difference between a debit card and a credit card?
A debit card is used to spend the money that is already in an individual's bank account. A credit card is used to buy something now and pay for it later.
This type of savings plan is typically sponsored by an employer.
What is a 401(k)?
What types of fees might you pay on your credit card? (name 3)
Annual Fees, late fees, returned payment fees, cash advance fees, foreign transaction fees
What is it called when an employer deposits and individual's pay check into a bank account rather than giving them a check?
What is direct deposit?
A document containing detailed information on a person's credit history.
What is a credit report?
Name three types of transactions that might show up on someone's bank statement.
Possible answers: Deposits, Checks, ATM withdrawals, online purchases, Bank fees
Should try to have enough money in an _____________ to pay three to six months expenses.
What is an emergency fund?
Which of these can affect a credit score?
a) late payment history
b) having too many credit card accounts
c) not having any credit cards
d) all of the above
d) all of the above
Daily Double (worth 5 points). What department do Bethany and I work in?
Compliance!!!!!