Vocabulary 1
To avoid frequent trips to the bank, many people use a(n) ___________________________ to withdraw cash or check their account balance.
Para evitar tener que ir al banco con mucha frecuencia, mucha gente usa ______________ para sacar dinero en efectivo o para mirar balance en su cuenta.
What is an ATM
Automated Teller Machine
____ protects your deposits in the bank up to $250,000 in case the bank fails.
_____ protege sus depósitos en el banco hasta los $250,000 en el caso que se quiebre el banco.
What is FDIC insurance?
This is how compounding interest works.
What is, compound interest is interest earned on the interest you have already earned. It's "interest on the interest"?
Therefore, the earlier you start saving, the more time your money has to earn interest and for interest to compound.
● Lack of access to credit + high interest rates
● Time costs associated with paying bills
● High fees for everyday financial services like check cashing and money orders
● Money is less protected than in a bank
● Missed opportunity to earn interest on your savings + difficulty building an emergency fund
What are some disadvantages of being unbanked?
Typically offers high interest rates for a standard savings account, but has no physical bank branches
Normalmente la cuenta de ahorros estándar gana intereses altos, pero no hay sucursales ni edificios bancarios
A(n) _________ shows all the transactions in your account and is typically sent to you once a month.
_____ demuestra todas las transacciones bancarias de su cuenta y normalmente el banco lo envía cada mes.
What is your bank statement.
Some banks charge a(n) ____ each month just to keep your checking or savings account open.
Algunos bancos cobran ____ cada mes solo por mantener su cuenta corriente de cheques o su cuenta de ahorros abierta.
What is a maintenance fee?
Your friend says they recently started using the “Pay Yourself First” strategy. In yourown words, what does that mean? What is one advantage of using that strategy?
Su amigo cuenta que recientemente está usando la estrategia “Pagarse a sí mismo primero”. En sus propias palabras, ¿Qué significa la estrategia? ¿Cuál es una ventaja de usar esta estrategia?
What is their money will be transferred automatically to their savings account regularly. This strategy guarantees they will be contributing to their savings. It can make it easier to save because they move money to a savings account before they’ve had the chance to view it as part of their income or to spend it.
● Set up alerts
● Use in-network ATMs
● Avoid maintenance fees by finding accounts that don’t have or will waive the maintenance fees
● Maintain the minimum account balance required
What are strategies you can use to avoid bank fees?
Typically offers the highest interest rate, but restricts access to funds for a set period of time
Normalmente gana intereses altos, pero se restringe el acceso al dinero durante un periodo de tiempo
What are certificates of deposit?
Your savings grow by earning ______, which is paid out as a percentage of your savings balance.
Se aumentan sus ahorros con ______, y se paga calculando un porcentaje del saldo de la cuenta de ahorros.
What is INTEREST.
Some financial institutions require you to maintain a(n) _____ in your account to avoid being charged fees.
Algunas instituciones financieras requieren ____ en su cuenta para poder evitar una cuota bancaria.
What is a minimum balance?
● They didn’t have enough money to meet minimum balance requirements
● Excessive fees
● Lack of trust in banks
What are three reasons someone might get unbanked?
Naomi sets up a new checking account. She opts out of overdraft protection. One day, she starts with $45 in her account. She uses her debit card to pay for a $20 cab and to buy a $15 movie ticket. Then, she swipes her debit card to buy $12 at the movie concession stand.
1. The final transaction does | does not go through.
2. She will | won't be charged a fee.
1. What is the last transaction will not go through. She will be embarrassed in front of all of her friends and customers queued up behind her.
2. What is she'll be charged a fee, which makes the whole situation worse. It's like throwing salt on a wound.
Provides easy access to funds and has physical bank branches, but typically offers the lowest interest rates
Ofrece un acceso fácil a los fondos porque tiene sucursales y edificios bancarios, pero se gana un interés más bajo
What are traditional savings accounts?
A(n) ____ is linked directly to your checking account and can be used to withdraw money or make purchases.
_______ se conecta directamente con su cuenta corriente de cheques y se puede utilizar para sacar dinero o hacer compras.
What is a debit card?
Using ______ on your banking app allows you to deposit checks without visiting a branch.
Usar la función del _____ en la aplicación bancaria permite el depósito de un cheque sin tener que ir en persona a un sucursal del banco.
What is mobile deposit/mobile banking?
Two advantages of opening a checking account at a credit union compared to a bank.
¿Cuál sería una ventaja de abrir una cuenta corriente de cheques en una cooperativa de créditos?
What are:
● Credit Unions and community banks typically have LOWER fees and charges when compared to a national bank
● Credit unions and community banks typically give back and support the local community
The three main differences between a checking and savings account.
Explique la diferencia principal entre una cuenta corriente de cheques y una cuenta de ahorros. ¿Por qué es importante tener las dos cuentas?
What are:
● Checking accounts are where you put your money if you want easy access to it, savings accounts are for storing money to earn interest longer-term.
● Checking accounts have relatively few restrictions on where and when you can deposit and withdraw your money. With savings accounts you may have more restrictions, such as a maximum of six withdrawals per month.
● Checking accounts may have fees associated with them since the funds are not typically available for banks to lend out. Savings accounts may not have these fees because banks can use the money in those accounts to lend to other customers.
Typically offers high interest rates, but requires a minimum balance and offers limited ability to write checks
Normalmente gana intereses altos, pero requiere un saldo mínimo y hay limitaciones para poder escribir cheques de la cuent
What are Money Market Accounts?
Many employers offer this service _______, which electronically transfers your paycheck directly into your bank account.
Muchos empleadores ofrecen ____, que es una transferencia electrónica de su pago directamente a su cuenta bancaria.
What is direct deposit?
To avoid a(n) ____, ensure you have enough funds in your account to cover all transactions.
Para evitar tener que pagar ____, hay que asegurarse de tener dinero suficiente en su cuenta para cubrir las transacciones.
Four ways you can deposit money into your bank account?
● Deposit a check at a bank
● Deposit a check using mobile deposit
● Deposit cash at an ATM
● Use direct deposit for your paycheck
What are:
● Withdraw money from an ATM
● Make a purchase with a debit card
● Use online bill pay
● Write a check
● Transfer money to another account
Iliza uses the 50/30/20 rule and earns $2750 per month. She’s putting all of her savings towards an emergency fund with a goal of saving $11,000. Assuming she has no savings currently, this is how long it will take her to meet her goal.
Iliza usa el presupuesto de 50/30/20 y gana $2750 al mes. Ella está poniendo todo los ahorros en un fondo para emergencias queriendo lograr tener $11,000 en ahorros. Suponiendo que aún no tiene ahorros, ¿cuánto tiempo necesita para lograr su meta?
What is 20 months?
$2,750 x 20% = $550 savings per month.
$11,000 savings goal / $550 per month = 20 months.