Checking and Savings
This monthly document lists every transaction in your account.
What is a bank statement?
Some banks charge this each month just to keep your checking or savings account open.
What is a maintenance fee?
This word describes a person who does not have a checking or savings account.
What is unbanked?
Many Americans do or do not have $400 on hand to cover an emergency expense?
What is do not?
Use this feature on your banking app to deposit a check without visiting a branch.
What is mobile deposit?
This type of savings account offers easy access to your money and physical branches, but typically pays the lowest interest rate.
What is a traditional savings account?
Keep at least this much in your account, as required by some banks, and you can avoid being charged fees.
What is a minimum balance?
Give one reason a person might be unbanked.
What is any one of the following?
Prices tend to do this over time because of inflation, so you want your savings to earn a higher interest rate than inflation.
What is increase?
This online banking feature can automatically pay certain bills each month.
What is online bill pay?
Typically the highest-paying savings option, this account restricts access to your funds for a set period of time.
What is a Certificate of Deposit (CD)?
Naomi opted out of overdraft protection. She starts the day with $45, pays $20 for a cab and $15 for a movie ticket, then tries to spend $12 at the concession stand. Does the last purchase go through, and is she charged a fee?
What is no, and no?
True or false: prepaid cards improve your credit score by building credit history.
What is false?
A friend says they use the "Pay Yourself First" strategy. Explain what that means and one advantage.
What is: setting aside money for savings as soon as you get paid, before spending on anything else?
Define a "digital wallet" and give one example of when you might use one.
What is an app that securely stores your payment information on your phone or device so you can pay without a physical card?
Your savings grow faster with this, which is interest earned on both your original deposit and on the interest you've already earned.
What is compound interest?
Name any three strategies for avoiding bank fees.
What are any three of the following?
Name one pro and one con of using a prepaid card.
Pros (any one): no bank account needed; usable anywhere debit cards work, including online; you can only spend what you've loaded.
Cons (any one): often has fees; fewer protections than most credit and debit cards; doesn't build credit; not linked to a bank account.
Iliza follows the 50/30/20 rule on $2,750 per month and puts all of her savings toward an $11,000 emergency fund, starting from $0. This is how long it takes her.
What is 20 months?
Give two pros and two cons of peer-to-peer (P2P) payment apps such as Venmo or Cash App.
Pros (any two): fast and convenient; easy to split bills or pay friends; no need to carry cash or write checks.
Cons (any two): risk of scams or sending money to the wrong person; money may be hard to recover; fees for instant transfers or credit card funding; funds held in the app may not have the same protections as a bank account.
This account typically pays high interest, but requires a minimum balance and limits how many checks you can write.
What is a money market account?
Had Naomi opted in to overdraft protection, this is what would happen to her $12 purchase, and what it would cost her.
What is: the purchase goes through, but she is charged an overdraft fee?
Name three disadvantages of being unbanked.
What are any three of the following?
According to the rules of thumb, this is the percentage of income you should aim to save, and this is how much you should hold in an emergency fund.
What are 20% of income, and 3 to 6 months of expenses?
True or false: an online account automatically waives all overdraft, ATM, and maintenance fees. Then explain one habit that keeps online banking secure.
What is false?