Checking/Savings Accounts
What type of account is used for daily transactions?
Checking Account
What is each category of the 50/30/20 budgeting rule?
50% needs
30% wants
20% savings
What is it called when you rely on each paycheck to cover expenses?
Living Paycheck to Paycheck
What is a method for employers to pay you directly into your bank account?
Direct Deposit
True or false:
Using your debit card will reduce your savings account balance.
False- it will reduce your checking account balance
With a payday loan you have __________ fees and _________ interest rates
high
high
What is an increase in prices of goods and services over time?
inflation
True or false:
You can only shop online if your bank account has online banking features?
FALSE
What type of account earns interest?
Savings Account
How much should you save for your emergency fund?
3-6 months expenses
Which of these has the highest interest rate?
a. Regular savings account
b. Student checking account
c. Checking account
d. Certificate of Deposit
d. Certificate of Deposit
When do you get an overdraft fee?
When you spend more money than the available balance
What type of interest gives you "interest on interest"?
Compound Interest
What reduces the purchasing power of your savings?
inflation
What agency provides protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business?
FDIC
Federal Deposit Insurance Corporation
If you have overdraft protection and your checking account balance is $20 and you spend $30 using your debit card, what will happen?
Your transaction will go through and you will be charged an overdraft fee
Sam saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
a) Regular Savings Account
b) student checking account
c) checking account
d) certificate of Deposit
Certificate of Deposit
You want to have an emergency fund to cover 6 months of her expenses. Your monthly expenses are $2,200. If you plan to save $600 out of your pay each month, how long will it take her to build her emergency fund?
$2,200 x 6= 13,200
13,200/ 600= 22 months
22 months
If you make $2,000 a month, how much would you need to save according to the 50/30/20 budgeting rule?
2,000 x .20=
$400
Jim has a bank account WITH overdraft protection that has a $15 fee charged for each transaction that exceeds the available balance. He has $220 in his checking account. Josh has the following transactions:
1) Josh used his debit card for $75 for gas
2) Josh's hulu subscription automatically charged his debit card for $35
3) A check he wrote for $100 for utilities comes out of his account
4) He goes out to lunch with friends and pays $20 using his debit card
5) He then goes for coffee and spend $7 using his debit card
How much will Josh pay in overdraft fees?
$30