Banking Basics
A business that keeps your money safe and provides financial services.
What is a bank?
This type of account is generally used for everyday purchases and paying bills.
What is a checking account.
When you use this card, money usually comes directly from your checking account.
What is a debit card?
A plan for how you will spend and save your money.
What is a budget?
Food, shelter, and basic clothing are generally considered these.
What are needs?
Money you put INTO your bank account is called this.
What is a deposit?
This account is designed for money you want to set aside for later.
What is savings account?
Using this form of payment means you're spending physical money you already have.
What is cash?
Money you receive or earn is called this.
What is income?
A new video game, designer sneakers, and concert tickets would generally fall into this category.
What are wants?
Money you take OUT of your bank account is called this.
What is a withdrawal?
You have $500 in checking and spend $75. Your new balance is this amount?
What is $425?
When you use this type of card, you are borrowing money that you will have to repay.
What is a credit card?
Things you spend money on are called these.
What are expenses?
You want an $80 sweatshirt but only have $50. Name one financially responsible choice.
Wait and save, buy something less expensive, etc.
The amount of money currently available in your account.
What is a balance?
You have $300 in savings and deposit another $125. Your new balance is this.
What is $425?
TRUE OR FALSE: Using a credit card means the money immediately comes out of your checking account.
What is false?
You earn $600 and have $450 in expenses. This is how much money you have left.
What is $150?
You have $100. You need $40 for something this weekend and want a $75 pair of sneakers. Can you afford both?
No. They would cost $115.
This is the money a bank may pay you for keeping your money in a savings account.
What is interest?
Give one reason someone might keep money in BOTH checking and savings instead of putting everything in one account.
Checking is for spending/bills; savings is for future goals or emergencies.
You have $40 in your checking account and try to make a $50 debit purchase. What is the problem?
You don't have enough money in the account.
Your expenses are greater than your income. Name ONE thing you could do to improve your budget.
Reduce spending/expenses or increase income.
You receive $200. Instead of immediately spending all of it, name TWO financially responsible things you could do with the money.
Save some, budget it, pay an expense, set aside emergency money, etc.