Banking
What are the two types of banking accounts?
Checking and Saving
What is budgeting?
The process of creating a plan to manage your income, expenses, and savings.
Why is credit useful?
It is convenient, provides safety, has benefits, and helps with large purchases.
What are the 3 types of insurance?
1. Auto
2. Health
3. Renters
This is what you’re doing when you buy a piece of a company hoping it grows in value.
Investing
What is a bounced check?
Check rejected by a bank for insufficient funds (NSF)
This behavioral economics concept explains why people often choose a smaller reward now over a larger reward later.
Present bias
What are four ways young people can get credit?
-Get a co-signer
-Get a starter or secured card
-Be an authorized user
-Pay student loan interest
What is insurance?
Contract for financial protection from risk of loss
This is the term for the money you earn from an investment.
Return
How long should your emergency fund cover you for?
3-6 months (of living expense)
This type of spending happens without planning and often leads to exceeding your budget.
Impulse buying
What are 5 things to consider when applying for a credit card?
1. Annual fee
2. APR (interest rate)
3. Penalty rates
4. Late fees
5. Grace Period (try for 25 days)
What is an actuary?
Professional who analyzes risk and calculates premium needed to cover potential loss payments.
This popular type of investment represents partial ownership in a company.
Stock
What is FDIC insurance?
Government protection for money in bank accounts. Up to $250,000 per bank (all accounts together)
This mental accounting bias leads people to treat money differently based on its source, like spending a tax refund more freely than a paycheck.
Mental accounting fallacy
Name 2 companies that calculate your credit report.
1. FICO
2. VantageScore
What are the five factors to determine your auto insurance rates?
1. Deductible
2. Make, model, and year
3. Mileage your drive
4. Your driving record
5. Your personal info (age, etc..)
If your investments lose value, you are said to have taken this kind of result.
Loss
What are ALL the common banking fees?
Monthly maintenance/service fee
Out-of-network ATM fee
Excessive transactions fee
Overdraft fee
Insufficient funds fee
Wire transfer fee
This behavioral economics concepts describes how people feel losses more strongly than gains of the same size, influencing their financial decisions.
Loss aversion
Name 3 agencies that create credit reports
1. Equifax
2. Experian
3. TransUnion
What are the components of auto insurance coverage?
Liability
Collision
Comprehensive
PIP
Uninsured motorist-optional
These 3 type of account help you save for retirement, sometimes with tax benefits.
1. Retirement account
2.401(k)
3. IRA