Savings Accounts
Q: What type of account is best for storing money safely and earning a small amount of interest?
A: What is a savings account?
Q: What account is typically used for daily spending?
A: What is a checking account?
Q: What is a credit card?
A: What is borrowed money that must be paid back?
Q: What is a budget?
A: What is a plan for spending and saving money?
Q: What is investing?
A: What is using money to make more money over time?
Q: What does APY stand for?
A: What is Annual Percentage Yield?
Q: What tool lets you pay for things directly from your checking account?
A: What is a debit card?
Q: What happens if you only pay the minimum balance on a credit card?
A: What is you pay more interest over time?
Q: What is a fixed expense?
A: What is a cost that stays the same each month?
Q: What is a stock?
A: What is ownership in a company?
Q: Why is a high-yield savings account better than a regular savings account?
A: What is that it earns a higher interest rate?
Q: What does it mean when a bank account is FDIC insured?
A: What is that money is protected if the bank fails?
Q: What is a credit score used for?
A: What is determining loan approval and interest rates?
Q: What is an example of a variable expense?
A: What is food, gas, or entertainment?
Q: What is a bond?
A: What is a loan to a company or government?
Q: What is one downside of withdrawing money too often from a savings account?
A: What are withdrawal limits or fees?
Q: What is an overdraft?
A: What is spending more money than you have in your account?
Q: What type of interest causes debt to grow faster over time?
A: What is compound interest?
Q: What budgeting rule suggests saving 20% of your income?
A: What is the 50/30/20 rule?
Q: Why is diversification important?
A: What is reducing risk by spreading investments?
Q: Why is it recommended to keep 3–6 months of expenses in savings?
A: What is for an emergency fund?
Q: Why is direct deposit beneficial?
A: What is faster access to pay and increased convenience?
Q: Name one responsible way to use a credit card.
A: What is paying the balance in full each month?
Q: Why is tracking expenses important?
A: What is to control spending and reach financial goals?
Q: Why is time important when investing?
A: What is compound growth over time?