Vocabulary
(What is) A fee paid to you for keeping your money in an account PR a fee charged to you for a loan or credit card
Interest
When is the best time to start saving for retirement?
As soon as possible
What does P2P stand for?
Person to Person (payment)
A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee
Check
The amount of money you have in your bank account
Balance
(What is ) A fee charged to your account when it lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway
Overdraft Fee
To pay yourself first means.....
(True or False) Using online banking always allows you to earn a higher interest rate on your savings.
FALSE
A handy portfolio that holds your check register, checks, deposit slips, receipts, and other records of ATM/debit card transactions
Checkbook
What is a brick and mortar?
Used to refer to a company with a physical presence in a building or other structure.
Reinvessting earned interest back into the principal, so that interest is calculated on both the initial amount and the accumulated interest
Compound Interest
What is the 50/30/20 rule?
50 % saved for your necessities, 30% for fun, 20% for saving/emergency fund
An automatic electronic deposit of net pay to an employee's designated bank account
Direct Deposit
To sign the back of a check made out to you so it can be cashed or deposited
Endorse
A sum of money DEDUCTED from your account
Debit
A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time
Certificate of Deposit (CD)
How much income should you set aside for your emergency fund?
3 - 6 months income
Jakobi has several overdraft fees on his account, what action would you recommend?
Transferring money from his savings to his checking account.
Define: Outstanding Check
A check that has been written but has not yet been cashed or deposited by the payee
Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing
Living Paycheck to Paycheck
Protextion provided by the Federal Deposit Insurance Corporation; protects the deposits of customers against loss
FDIC Insurance (Bonus Points) What is the maximum amount each of your accounts is insured for?
Which type of account would be best if you want to earn the highest interest rate AND do not need to access your money for a number of years?
A) Regular savings account
B) Money Market Account
C) Checking Account
D) Certificate of Deposit
Certificate of Deposit (CD)
What is the main difference between a payroll card and a prepaid card?
You are getting money from your employer on a payroll card
to compare your bank's monthly account statement with your own records of activity for the same account
Reconcile
(Fill in the blanks) If inflation is __________ your savings account interest rate then you will be _________purchasing power.
Word Bank:
Higher than, gaining
Higher than, losing
Equal to, gaining
Lower than, losing
Higher than, losing