Types of Acconts
a great option for storing your money for short term and day to day use.
What is a Checking Account?
a fee banks charge by the month for you to keep your money in an account with them.
What is a Monthly Maintenance Fee?
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
What is FDIC Insurance?
20
What is the percentage of your income that should go to savings?
an appliction that let you send money directly to another person while keeping their bank account details private.
What is P2P Payment?
What is an Online Savings Account?
A fee charged by a bank for making a purchase when you don’t have enough funds.
What is an Overdraft Fee?
the amount of mental pleasure or pain we get from feeling like we paid less or more than something’s really worth, and is often totally disconnected from the happiness you get from the thing itself
What is Transaction Utility?
saving up for a down payment for a house
What an example of a Long-term Savings Goal?
allows contactless transactions with businesses
What is a Digital Wallet?
the cost of borrowing money or the return on savings
a useful option for someone who is unbanked to make online purchases
What is a Prepaid Card?
our tendency to assign more value to things we already own than the things we could own
What is the Endowment Effect?
3-6 months' worth of your expenses saved up
What is an Emergency Fund?
a place you can request transfers, pay bills and automate your savings without visiting the bank branch
What is Online Banking?
a type of account that has the highest interest rate and is timed
What is a Certificate of Deposit?
You can’t pay some bills with a payroll card
What is a Con of a Payroll Card?
our tendency to follow through with something that we’ve already invested heavily in (be it time, money, effort, or emotional energy), even when giving up is clearly a better idea.
What is the Sunk Cost Fallacy?
Nick wants to have an emergency fund to cover 4 months of his expenses. His monthly gross pay is $6,000 and his monthly expenses are $3,000. If he plans to save 10% of his gross pay each month, how long will it take him to build his emergency fund?
20 months
24/7 access to your account
What is an advantage of Online Banking?
an account that is able to offer higher interest rates because the bank invests in higher yield instruments such as commercial bonds
What is a Money Market Account?
an assortment of fees that will eat into your cash balance. These may include monthly fees, transaction fees, ATM fees, reloading fees, and foreign transaction fees.
What is a downside of Prepaid Cards?
totally interchangable
What is Fungable?
Zhey wants to have an emergency fund to cover 5 months of her expenses. Her monthly gross pay is $10,000 and her monthly expenses are $6,000. If she plans to save 30% of her gross pay each month, how long will it take her to build her emergency fund?
10 months
buy something from a business
What is something that you CANNOT do with P2P apps?