Banking Basics
True/False: A bank keeps your money safe and offers services like debit cards and loans.
True
What kind of card pulls money directly from your checking account at the time you make a purchase?
Debit card
What do you call a plan for how you spend and save your money?
Budget
What happens if you spend more than you have in your checking account?
Overdraft
False
What type of account is used for everyday spending?
Checking account
What is the extra fee called that you might be charged if you use a debit card and don't have enough money in your account?
Overdraft fee
What is money you received called?
Income
What is good way to avoid overdraft fees? A) Spend more B) Use alerts C) Borrow more
What is the money called that you get back when you pay more than something costs?
Change
What type of financial institution is nonprofit and member-owned?
Credit union
What type of card allows you to borrow money up to a certain limit and requires you to pay it back later with interest?
Credit card
What is money you spend called?
Expenses
Which is safer: carrying cash or using a debit card?
Debit card
Which card helps you build credit?
Credit card
What type of account is used to save money and earn interest?
Savings account
What is the term for the extra money a bank charges you for not paying your full credit card balance on time?
Interest
Which is a fixed expense? A) Rent B) Movie ticket C) Gas
Rent
What should you do before buying something expensive? A) Save up B) Use credit without checking your balance C) Skip it
A) Save up
What is the term for extra money you pay when borrowing with a credit card?
Interest
What is the name of the number assigned to your bank account that you must keep private and use to access your money at an ATM or with a debit card?
PIN (Personal Identification Number)
What is the maximum amount you can spend on a credit card called?
Credit limit
Debt
What is the best tool to track your spending? A) Budget B) Guesswork C) None
A) Budget
What is the term for all the money a person or business makes before subtracting any expenses?
Revenue