Behavioral Econ
What is the fear of missing out on a good deal or event called?
FOMO
Name two common types of bank accounts
Checking, Savings
What is a fee charged if you don’t have enough money for a transaction?
Overdraft Fee
True or False: A debit card uses money directly from your checking account.
True
What is the process of comparing your bank statement with your own records called?
Reconciling/ Balancing a checkbook
Which bias makes people stick with losing investments because they’ve already put money in?
Sunk Cost Fallacy
Which account is best for everyday spending?
Checking
Name one common monthly maintenance fee
Low balance, not enough direct deposits, etc.
What’s the difference between a debit card and a credit card?
Debit = your money, Credit = borrowed money
On a check, where do you write the amount in words?
The long line in the middle
When people do what others are doing, even if it doesn’t make sense financially.
Herd Mentality
Which account is better for saving money long-term and earning interest?
Savings
What’s one way to avoid ATM fees?
Use in-network ATMs, get cash back at stores, or go into the bank to withdraw
What is one risk of using a debit card compared to cash?
Fraud, overspending, fees
What happens if you write a check for more than you have in your account?
Bounces/overdraft
Which bias makes people value things more just because they own them?
Endowment Effect
Name one reason someone might open an online-only bank account.
Higher interest, lower fees, convenience
What does overdraft protection do?
Covers transactions when you don’t have enough money, often with a fee
What information should you never share to keep your debit card safe?
PIN number
What is the routing number used for?
Identifies the bank
This bias happens when people only look for information that supports what they already believe.
Confirmation Bias
What does FDIC insurance protect you from?
Bank failure – up to $250,000
True or False: Credit unions are for-profit institutions
False – nonprofit
If you withdraw $20 from an out-of-network ATM that charges $3, and your bank also charges $2, how much does that withdrawal really cost?
$25
You have $100 in your account. You write a check for $60, use your debit card for $30, and forget about a $20 auto-payment. What's your balance now?
-$10..... Overdraft