Budgeting
You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?
A. Cell phone bill
B. Groceries and eating out
C. Rent
D. Bedroom Furniture
C. Rent
Why is understanding a bank's fees particularly important for students or young adults?
a. Banking is like insurance; being younger means higher fees
b. With less banking experience they may incur fees unknowingly
c. Your credit score is heavily dependent on how well you bank
b. With less banking experience they may incur fees unknowingly
Which of the following is usually a benefit of being a member at a credit union?
A. Higher interest rates and lower fees
B. Lower interest rates and higher fees
C. Higher interest rates and higher fees
D. Lower interest rates and lower fees
A. Higher interest rates and lower fees
Keziah reads her bank statement and finds an error. Should she call the bank, call FDIC, or do nothing?
Call the bank
Ja'Neel has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. What is his net pay? What is his gross pay?
$2,500- net pay
$3,000- gross pay
True/False: Overdraft protection is a required feature of most checking accounts with no ability to opt out.
FALSE
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
A. Your credit card company covers the cost
B. It is deducted directly from your savings account
C. It is deducted directly from your checking account
D. It is deducted directly from your savings account
C. It is deducted directly from your checking account
About how many months of living expenses should you save in an emergency fund?
3-6 months
Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
50%-needs
30%- wants
20%- savings
How much is charged typically for overdraft fee?
$35
All of the following are downsides to being unbanked EXCEPT for:
A. Lack of fees associated with banks
B. Lost time paying bills
C. Lack of access to credit
D. Difficulty making cashless purchases
A. Lack of fees associated with banks
People who are unbanked are most likely to...
a. Incur lots of fees at Check Cashers to access their money
b. Use a mobile banking app
c. Deposit their checks at the ATM
d. Receive a monthly statement of their transactions
a. Incur lots of fees at Check Cashers to access their money
Name budget rule: Putting every dollar of your net pay into a budget category each month, is what type of budgeting strategy?
A. Pay yourself first
B. Zero-based strategy
C. 50/30/20 strategy
D. Envelop method
B. Zero-based strategy
All of the following are reasons to open a checking account EXCEPT…
A. Making it easier to pay bills
B. Earn interest on your deposits
C. The ability to make purchases with a debit card
D. Access to cash at an ATM
B. Earn interest on your deposits
True or False: FDIC insurance is not a protection for bank customers to deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
FALSE
Which is NOT a typical goal for a savings account?
A. To create an emergency fund
B. To buy groceries for this week
C. To save for a new car
D. To pay for higher education
B. To buy groceries for this week
Name budget rule: When you set aside a fraction of your paycheck into a savings account before you start spending your money, what budget strategy is this?
A. 50/30/20 rule
B. zero-based strategy
C. 70/30 rule
D. Pay yourself first
D. Pay yourself first
True/ False: Overdraft protection allows you to overdraw your account and charges a high penalty fee.
TRUE
How is compound interest different than simple interest?
A. It is simple interest - interest earned on that interest
B. It is double the simple interest earned on an investment
C. It is simple interest + interest earned on that interest
D. It's not different; they are one and the same
C. It is simple interest + interest earned on that interest
Which of the following is TRUE about banks and credit unions?
A. There are more local credit unions than there are banks.
B. Banks are not taxed; credit unions are taxed.
C. Banks are insured by the NCUA; credit unions by the FDIC.
D. Banks are for-profit; credit unions are not-for-profit.
D. Banks are for-profit; credit unions are not-for-profit.