General
Name 2 ways a person can use a bank
saving, borrowing, paying bill, transferring money
A checkings and saving account
one is an account that is specifically made for spending the money you put in the account the other is for saving money
Nathan got his paycheck and instead of carrying it around he decides to open an account just for everyday spending. Which account should he open?
What is a checking account?
A payment of a bill made directly from your bank account
Automatic Payment
What is direct deposit?
An automatic deposit made to your bank account by your employer
When can you start saving money in an interest bearing account?
Now!
These can be opened at any time
an ATM and a bank teller
computer banking vs real person
Shay is at Kohls. She is offered a 20% discount if she signs up for a ____ card from Kohls.
a credit card?
A plan on how a person will spend their money
a budget
What is a loan?
When you borrow money and pay it back but with interest
A pin is typically used when dealing with this type of card
a debit card
A debit card and a credit card
A debit card only uses the money in which one a person has in a bank. A credit card uses the money in which a person borrowed from the place in which they received the card.
If you receive a paycheck for $1000, how much money should you put into your savings account?
$200
Experts recommend saving 20% of everything you earn. If you can not afford to save 20%, save 10%, 5% or whatever you can.
The amount of money you have in your bank
your balance
What do you call a loan that is taken out to buy a house?
A mortgage
What does ATM stand for?
Automated Teller Machine
Good use of a credit card vs. poor use of a credit card
Answers will vary
Name 4 things that should go in your monthly budget
Rent/mortgage, gas, food, cell phone, insurance, subscriptions, car payment, etc.
A list of your debits and deposits
a statement
What is a joint bank account?
A bank account that more than one person has access to.
Examples: married couple
parent and child
What is the minimum amount to have in an emergency account?
At least 3 months of living expenses
Good or smart debt vs. debt that is not smart
Answers will vary
How can you calculate your net worth?
Assets - Liabilities
The maximum amount of money that you can charge to a credit card
credit limit
What does it mean to overdraft your account?
What will happen if you do this?
You spend more money than you have in your account so your balance goes into the negatives.
You will be charged an overdraft fee. Usually $30-$35