Bank Basics
What do you call a place where people keep their money safely?
bank
What is a plan for how you’ll spend and save your money called?
Budget
What is a credit card?
Card that lets you borrow money to pay for purchases
What machine lets you withdraw or deposit money without going inside the bank?
ATM
What is the purpose of saving money?
prepare for future expenses or goals
What is the name of the card that lets you take money out of your checking account immediately?
Debit Card
What is the term for money you owe to someone else?
Debt
What is interest on a loan?
cost of borrowing money
What is online banking?
managing your bank account using the internet or an app
What is compound interest?
earning interest on your interest
What do we call the money the bank pays you for keeping your savings there?
Interests
What is the best way to avoid spending more money than you have?
Tracking your expenses or using a budget
What is a credit score used for?
measure how likely you are to repay borrowed money
What is direct deposit?
when your paycheck is automatically sent to your bank account
What is the first step in creating a budget?
tracking your income and expenses
What is the difference between a checking account and a savings account?
checking is for daily use, savings is for storing money and earning interest
What is an emergency fund used for?
Unexpected expenses (like car repairs or medical bills)?
When you make monthly payments that slowly reduce your loan balance and interest, what is that called?
loan repayment
What is a bank statement?
monthly summary of your deposits and withdrawals
What is the difference between saving and investing?
saving is low-risk and short-term, investing is higher risk and long-term
What is the name of the government agency that insures your money in banks up to $250,000?
FDIC (Federal Deposit Insurance Corporation)
What is the “pay yourself first” rule?
Saving money before you spend on anything else
What is one consequence of not paying your credit card bill on time?
late fees and damage to your credit score
What is overdraft protection?
service that covers transactions when you spend more than your account balance
What kind of expense changes from month to month, like groceries or gas?
Variable Expense