Saving & Goals
Which account is generally best for money you won't need for several years and want to earn interest on?
Certificate of Deposit (CD)
You use a debit card to buy $32 groceries. Which account is normally reduced?
Checking Account
What does FDIC insurance protect?
Covered bank deposits, generally up to $250,000 per depositor, per insured bank, per ownership category
Digital wallets and P2P apps have made what less necessary?
physical cash
What does it mean to be unbanked?
Not having a bank account
Which is better:
Save whatever is left at month-end OR
Automatically save a set percentage from each paycheck?
Automatically saving a set percentage
How often do customers typically receive a checking account statement?
Monthly
False
Direct deposit usually mean your ________ sends your _________ electronically to your bank account.
Employer, paycheck
Limited access to credit, difficulty making cashless purchases, or extra time paying bills
Put these in order from short-term to long-term: retirement, new phone, house down payment
new phone-house down payment-retirement
You have $18 and make a $27 debit-card purchase with overdraft coverage. What may happen?
The transaction may go through, you may owe the bank and an overdraft fee
You notice three ATM withdrawals you did not make. What should you do?
Contact the bank immediately.
Give one advantage of online banking.
Transfer money, pay bills, or automate savings without visiting a bank
Name two fees a checking account might charge.
Overdraft, ATM or monthly maintenance fees
Using 50-30-20, what percentages go to needs, wants, and savings?
50% needs
30% wants
20% savings
A friend gives you a $145 check, but you lose it. Who should you contact about a stop payment?
The bank
Inflation is higher than your savings interest rate. Are you gaining or losing purchasing power?
Losing
Which is P2P: sending a roommate $40 for rent OR paying an electric company through its website?
sending a roommate $40
Give one way to avoid a checking account fee
Meet account requirements, maintain a minimum balance or use in-network ATMs
Why is starting retirement savings early helpful?
Your money has more time to grow
Give two reasons to check your bank statement regularly.
Catch errors/unauthorized transactions and compare your records
Which is NOT a benefit of checking: easy access, paying bills, or earning a higher return than stocks?
Earning a higher return than stocks
A bank app moves $75 from checking to savings every payday automatically. What strategy is this
Automatic saving/transfer
Payroll cards: give one pro and one con
Pre: convenient access to wages
Con: possible fees/limited features