checking account
What is a checking account?
An account used to deposit funds and easily access them
True or False: a savings account is used for everyday spending
False
what account does money on your debit card come from?
Checking account
Using a credit card is like taking out a what?
Loan
what do you need to apply for a credit card?
Be over 18 and have a job
what is a deposit?
Putting money into your account
Name 3 things you could save money for
Pool, Phone, Car
What is one pro of a Debit card?
It is money you already have
You can have one at any age
You don't have to carry piles of cash
There are no interest charges
What is credit?
Credit is money you borrow from an issuer to pay back later
How can we keep a good credit score?
Pay your credit bill in full each month
Avoid credit debt and having to pay interest
What is a Withdrawal
Taking money out of your account
What is a savings account?
An account that stores money that you would want to spend later
What is one con of debit?
Risk of overspending
Less protections
It can be hard to budget if not used wisely
Potential overdraft fees
Which is better a High or Low credit score?
High, typically want to be above a 730
What is a stock?
Company ownership
Name two ways that we can protect our checking account
make a strong password and do not share information with anyone. And two step verification along with keeping our cards in a safe place
A savings account can also be used for needs. What is an example of a NEED that we would save for?
Medical bills, House Bills, and Student Loans
What is a prepaid debit card?
A prepaid debit card is a debit card that has a certain amount of money loaded onto it.
Example: Gift card
why do some people have to pay interest when using a credit card?
They dont pay their credit card bill full
What does diversification do?
Reduces Risk
Name 3 ways we can withdrawal out money
Spend money on items like groceries, Taking money out of an ATM, and buying clothes online
What is interest on a savings account?
a percentage of money a bank pays you for storing your cash in a savings account
What does overdraft mean?
Overdraft happens when you spend more than what you have in your account. Overdraft means you have a negative balance and are in debt.
How is credit different than debit?
Credit is money you borrow vs debit is money you already have.
Credit charges interest vs. debit does not.
Credit builds credit score while debit does not.
What type of interest adds both to the money you deposit and the interest you’ve already earned?
Compound Interest