Banking
What is a fee that banks charge for spending more than you have in your account?
Overdraft fee
What is a fixed expense?
Expense that occurs within a certain timeframe (weekly, monthly, etc.) and the cost remains the same.
What is the only way to not incur interest on your credit card?
Pay your balance in full every month.
What is it called when you paycheck goes straight into your bank account?
Direct Deposit
Give an example of a non-recurring expense.
It can be infinite things, so judges will determine if their answer is correct.
How much should I spend if my credit limit is $2000 to maintain a health credit score?
Should not spend over $600 (30%).
What is the main reason to have a checking account?
Have immediate access to your money to pay for things.
What is a whammy expense?
Any cost that is unexpected and is a large amount of money.
What are two advantages of credit cards?
Acceptable answers: fraud protection, used for emergencies, it is not linked to checking or savings account, many credit cards offer a rewards system.
If I have $100 in my savings account at the end of the year, and I have 5% interest rate (APY), what would be my new account balance after the interest rate was applied?
$105 (100*0.05=5; 100+5=105)
What is the second thing you should do when creating a budget plan.
Track your expenses.
What is a credit score?
A numerical representation of your creditworthiness (how trustworthy you are with borrowing and repaying money).
How many months of income should your emergency fund be able to cover? (provide an interval)
3-6 months
What is the 50/30/20 rule?
50% for needs, 30% for wants, and 20% for savings.
What percentage of your credit score comes from your payment history?
35%