Checking In
This type of bank account is designed primarily for frequent deposits, withdrawals, and everyday spending
What is a checking account
This account is generally designed for money you want to set aside rather than spend regularly
What is a savings account
This occurs when you spend more money than you have available in your account
What is an overdraft
How much money is protected by FDIC insurance per account?
$200,000
Mia wants somewhere to keep the money she uses for lunch, gas, and everyday purchases. Which account makes the most sense?
What is a checking account
This card takes money directly from your checking account when you make a purchase
What is a debit card
Money specifically saved to handle unexpected expenses is called this
What is an emergency fund
A bank may charge this when it allows a transaction to go through even though you don't have enough money available
What is an overdraft fee
Banking Fees
Loan Interest (Lending Money)
Carlos wants to separate $1,000 from his everyday spending money so it's available for emergencies. Which account would generally make more sense?
What is a savings account
Your employer electronically sends your paycheck straight into your bank account
What is direct deposit
Automatically moving part of every paycheck into savings is an example of this idea
What is paying yourself first
One simple way to avoid overdraft fees is to regularly do this with your account balance
What is monitor/check your balance
Which type of savings account requires you to leave money in the bank for a specific amount of time?
Alex wants to earn the maximum amount of interest on his savings account and doesn't need access to the money for 1 year. What is the best type of savings account for him?
CD (Certificate of Deposit)
This document summarizes deposits, withdrawals, purchases, fees, and other activity in your bank account
What is a bank statement
You want to save $1,200 for a laptop in 12 months. About how much should you save each month to stay on track?
What is $100 per month?
True or False: Overdraft protection always means overdrawing your account is free
False
Give one advantage of having your paycheck deposited directly into your bank account
faster access to money, convenience, less risk of losing a physical check, or easier automated saving
What are the categories of the 50/30/20 savings strategies?
50%- Needs, 30% Wants, 20% Savings
You see a transaction on your bank statement that you don't recognize. What should you do rather than simply ignoring it
Investigate/report the transaction and contact the financial institution if necessary
Name the three broad time categories NGPF asks students to consider when creating savings goals
What are short-term, medium-term, and long-term goals
Jordan has $35 in checking and makes a $50 purchase. Explain why the purchase could ultimately cost Jordan more than $50
The purchase could overdraw the account and potentially trigger an overdraft-related fee depending on the account/bank's policy
What is the difference between simple interest and compound interest?
Simple interest is paid only on the initial investment, compound interest is paid on the current value of the account.
A check written (or other transaction) cleared your account after you checked your balance.