Checking Accounts & Checks
What do you call the book you use to record deposits and withdrawals from your account?
Check register
What is the main purpose of a savings account?
To save money safely
A money market account is most like which type of account: checking or savings?
Savings
What does “credit” mean?
Borrowing money you’ll pay back later
What is a budget?
Spending plan
True or False: Checking accounts usually earn a high amount of interest.
False
Do savings accounts usually pay interest?
What does “CD” stand for in banking?
Certificate of Deposit
What’s the danger of only paying the minimum on a credit card bill?
You’ll pay a lot of interest and stay in debt longer
Why is balancing a budget important?
So you don’t spend more than you earn, teaches you responsibility
What is it called when you spend more money than you have in your checking account?
Overdraft
Which account is usually easier to take money out of—checking or savings?
Savings
What is usually required to open and keep a money market account?
A higher minimum balance
What three-digit number shows how responsible you are with credit?
Credit Score
What is income?
What card lets you take money directly from your checking account when you make purchases?
Debit Card
What does the bank pay you for keeping your money in a savings account?
Interest
What happens if you take money out of a CD early?
You pay a penalty
What is the maximum amount you can borrow on your credit card called?
What is an expense?
Money you spend
What do you write on the line in the bottom right corner of a check?
Your signature
Why is it a good idea to keep money in savings for emergencies?
Because it’s safe, earns some interest, and is available when you need it
Why might someone choose a money market account instead of a savings account?
To earn higher interest while still having some access to funds
Give one advantage and one disadvantage of using credit cards.
Advantage: build credit, convenient, rewards.
Disadvantage: can go into debt, pay high interest
List the three main parts of a budget.
Income, Expenses and Savings