Banking
What is a bank, and what services does it provide ?
a bank is a financial institution that accepts deposits and makes loans. provides services such as deposit accounts, loans, payment processing and more.
What is a credit score?
a credit score is a numerical representation of a person's credit worthiness used by lenders to assess the risk of lending money.
What are taxes ?
taxes are financial charges or other levies imposed upon a taxpayer by a government or other-revenue raising institution.
What is insurance and why is it important ?
insurance is a contract that provides financial protections against specified losses in exchange for a premium, and it is important because it offers financial security.
What is a budget, and why is it important ?
a budget is a systematic plan for managing income and expense, which is vital for maintaining financial control, achieving long-term savings goals, and avoiding excessive debt.
What is the difference between a checking account and a savings account?
checking accounts are for daily and frequent transactions, while savings are for storing money, earns higher interest (APY), building for emergency funds and saving for future goals, and for accumulating funds with interest
How does using a credit card affect your credit score ?
What is income tax ?
a government levied tax on individual or business earnings used to fund public services and infrastructure.
What is a deductible in a insurance policy ?
the amount an insured person pays out of pocket for a loss before the insurance provider covers the remaining costs.
What is a debit card and how does it work ?
a payment tool that draws funds directly from your personal bank account, ensuring you only spend money you already possess.
What is the difference between good credit and bad credit ?
good credit makes is easier and cheaper to borrow money, while bad credit makes borrowing more difficult and expensive (higher is good and low is bad)
What is a tax refund ?
a tax refund is a reimbursement for overpaid taxes.
What type of insurance do people commonly need ?
health, auto, homeowners/renters, and life insurance are commonly needed.
banks charge fees and interest to cover their operational costs, compensate for the risk of lending and generate profit.
Why is it important to make credit card payments on time?
its essential for maintaining a good credit score, avoiding late fees and higher interest rates, and demonstrating financial responsibility
What is the purpose of filing a tax return ?
to report income, calculate tax liability, and determine any refund or balance due to the government.
How does an insurance claim work ?
an insurance claim is a request for compensation from an insurance company after a covered loss, involving notification, documentation, investigation, and payment.
What is the purpose of online banking ?
to provide customers with convenient and remote access to banking services and transactions via the internet
What is a credit report, and what information does it contain?
its a detailed record of an individual's credit history, containing personal information, credit accounts, payment history, credit inquiries, public records, and a credit score.
What is the difference between federal, state, and local taxes?
federal taxes are collected by the national government and primarily used to fund national priorities. State are levied by individual state governments to fund services that operate at the state level. Local taxes are imposed by counties, or school districts to provide services that directly affect the local community.
What is the difference between a premium and a deductible ?
a premium is the regular payment for insurance coverage, while a deductible is the amount paid out-of-pocket before insurance benefits begin