Save Smart
You put part of every paycheck into savings before spending on extras. What savings strategy is this?
Pay Yourself First
Which account is built for everyday spending with a debit card and bill payments?
Checking Account
What kind of card lets you spend money loaded onto it, but generally does not build credit
Prepaid card
Your employer sends your wages electronically straight to your bank account. What is this called?
Direct Deposit
What is one common challenge for people without a bank account?
Cashless purchases can be harder, paying bills can take extra time, and access to credit may be limited.
You want to lock away money for a few years and earn a strong interest rate. Which type of account is this?
Certificate of Deposit (CD)
Which type of account is meant for money set aside and may earn interest?
Which type of interest do you want?
Compound Interest
Name one way to help avoid overdrawing a checking account.
Use low-balance alerts, track spending, or keep enough money in the account.
What is one reason to review your bank statement each month?
How often do you receive a bank statement?
To spot errors, unauthorized charges, and check balances.
Once a month
Why might an online savings account appeal to someone comparing banks?
It may offer a higher interest rate.
A student wants an emergency fund equal to six months of $2,000 expenses. How much would that be?
$12,000
$2,000 x 6 = $12,000
(You want 3-6 months of your monthly expenses in your emergency fund)
What organization protects eligible bank deposits up to $250,000 per depositor, per insured bank, per ownership category?
FDIC (Federal Deposit Insurance Corporation)
You have $10 but try to make a $12 debit purchase. If you opted out of overdraft protection, what may happen?
The transaction may be declined.
You notice ATM withdrawals you did not make. What should you do first?
Contact your bank immediately and report the suspicious activity.
True or false: A regular savings account has historically tended to earn more than stock-market investments
False.
Savings account typically less than 1%
Stock Market Investments ~6%
You save $400 each month toward a $12,000 emergency fund. About how long would like that to achieve this goal?
30 months
$12,000 / $400 = 30 months
What is one key benefit of online banking tools?
You can transfer money, pay bills, and automate savings without visiting a branch.
You have $10 and make several debit purchases totaling more than your balance. With overdraft protection, what will happen?
Your transaction will get approved but one or more overdraft fees may apply, and you must repay the overdrawn amount.
If inflation is higher than the interest rate on your savings, what happens to your money's purchasing power?
It decreases / you lose purchasing power.
Why might a prepaid card be useful to someone without a bank account, even though it has drawbacks?
It can help make purchases online or anywhere the card network is accepted; fees may apply.
Why can starting retirement savings early make a big difference?
Your money has more time to grow through compound interest.
A household is living paycheck to paycheck. What does that usually mean?
Most or all pay is used for expenses, leaving little or no savings.
A worker gets paid on a payroll card. Name one potential benefit and one thing they should check?
Benefit: access to pay on payday
Check: fees and terms
Which type of payment app is best suited for splitting a bill with a friend rather than paying by check or cash?
A person-to-person (P2P) payment app.
- Venmo
- Paypal
- Zelle
- Cash App
Most people need to save for retirement only after paying off every debt. True or false?
False. Starting early can give savings more time to compound.