Checking & Savings Accounts
What is the main purpose of a savings account?
Used to save money (depositing money in this account and setting it aside for later)
Which of these is the safest option to invest your money?
Stock Market, Social Security, Savings Account
Savings Account
Using a debit card usually requires a __________ for purchases.
PIN (Personal Identification Number)
You will need a good credit score to put a down payment on a _______________, apartment, or a car.
House
How many digits are in a PIN (Personal Identification Number)?
4
A savings account gains ______________ over time.
Interest
Maliyah needs help cutting down her budget and saving money. She is looking to remove one of these things from her monthly budget so that she can start to spend less money. Which of these is not a "need" and can be cut from Maliyah's budget?
Gas for Her Car, Heating Bill, Phone Bill, Fast Food, Clothing, Rent
Fast Food
(Groceries and food are a need, but eating out at fast-food and restaurants for meals constantly is expensive and a "want.")
What happens when you use your debit card and spend more money than you have in your account?
You will be charged an overdraft fee (your purchase may also be declined, or the bank may "cover" the charge for you)
How can your credit score drop (get worse) over time?
Missing credit card/loan payments, not paying off loans, or applying for too many credit cards or loans.
What was the total budget amount you were given for the Budget Trip assignment?
$5,000
What is the main purpose of a checking account?
Used for everyday spending and purchases (ex: paying bills, buying groceries, random purchases, etc.)
After all of her bills and payments have been made, Leela has $50 for savings at the end of the month. She wants to save up for a Playstation 5 and a new game, which all cost $700. How many months will it take until Leela has enough saved to buy this?
14 months
When using a credit card, where does the money come from to allow you to make that purchase?
The credit card company or bank that issued the credit card (it does not come out of your accounts, but you must pay back this purchase later)
How can you improve your credit score?
Making credit card and loan payments on time and paying off debts on your credit card (the higher amount of money that you pay off on your credit card, the higher your score will increase)
Which of these is NOT a real bill that you would have to pay as a home owner?
Home Owner's Association Fee, Sewer Bill, United States Postal Service Fee, Trash & Recycling Pickup Fee, Community Landscaping Bill, Snow Plow Charge
United States Postal Service Fee
(It is free to receive your mail.)
How many times a month can you access and withdraw money from your checking account?
Infinite (as many times as you want or until there is no more money in your account)
Jonah's monthly income is $2,600 a month. However, he needs to see how much money he has left after all his payments are made. Jonah's rent is $1,250. He also usually spends $500 a month on groceries and food. His electricity, water, and heating bills cost him $300. His phone and WiFi bill cost him $175. Finally, he pays $260 a month on his student loans. How much money does he have left over to save?
$115
Making purchases with a credit card and paying it off later allows you to build ________________ over time.
Credit (affects your credit score)
Your credit score is a number that shows banks and loan companies how _________________ you are with borrowed money.
Trustworthy (or responsible)
Typically, how many times a month does a bank let you withdraw money from your savings account?
6
How can you quickly access your checking or savings account to see how much money you have?
Your bank's app on your smartphone (or at a nearby ATM)
On Sunday, Keith went to Target and purchased $40 of groceries. After that, he went to Wawa and bought gas for $35. Then, he drove to Walmart to buy clothes for $20. Finally, he stopped at McDonald's to buy lunch for $12. However, Keith forgot that his bills were taken out on Friday, so he had no money in his checking account for the entire weekend. Including overdraft fees and all of Keith's purchases, how much total was he charged on Sunday?
(Use standard overdraft fee amount)
$247
($107 for purchases, $140 for overdraft fee)
Generally, how much will you be charged for an overdraft fee on each purchase?
$35
($34-$37)
Other than making big purchases or applying for a loan from a bank or credit company, who else might check your credit score to see if you have good or bad credit?
A job that you are applying to.
We have been recently talking about banks, savings accounts, and credit cards a lot. Which of these is NOT a name of a bank?
Citibank, Morgan Stanley, Ally Financial, PNC, Charles Schwab, M&T, First Citizens, JPMorgan, American Monosave, Goldman Sachs, Truist.
American Monosave