Banking Basics
What does ATM stand for?
Automated Teller Machine
What does the “50/30/20” rule in budgeting stand for?
50% needs, 30% wants, 20% savings/debt payments
What is a credit score, and why is it important?
A number that represents creditworthiness; it affects loan approvals, interest rates, and even job opportunities.
What does ROI stand for in investing?
Return on Investment
What is the largest ocean on Earth?
The Pacific Ocean!
What is the name of the account where you deposit money for daily transactions?
Checking Account
What is an emergency fund used for?
Unexpected expenses like medical bills, car repairs, or job loss
What does APR stand for?
Annual Percentage Rate
What is the difference between a stock and a bond?
Stock = ownership in a company, Bond = loan to a company/government with fixed interest
What gas do plants absorb during photosynthesis?
Carbon dioxide (CO₂)
What does FDIC stand for, and what does it do?
Federal Deposit Insurance Corporation; insures deposits in banks up to $250,000
What is the difference between fixed expenses and variable expenses?
(Fixed = stay the same (rent, insurance), Variable = change monthly (groceries, gas))
What is the recommended credit utilization percentage for maintaining a good credit score?
Under 30%
What is compound interest, and why is it powerful?
Interest that builds on both the principal and previous interest earned; helps money grow faster over time.
What is the longest river in the world?
The Nile River!
What is the difference between a credit union and a bank?
Credit unions are member-owned and non-profit, while banks are for-profit institutions.
What is inflation, and how does it affect your money?
The rise in prices over time, decreasing the purchasing power of money.
What is the snowball method of paying off debt?
Paying off the smallest debts first while making minimum payments on larger debts to gain momentum.
What is an index fund, and why is it a popular investment choice?
A fund that tracks a stock market index like the S&P 500; it offers low fees and diversified investments.
What is the deepest point in the ocean called?
The Mariana Trench!
What is the term for the extra money banks pay you for keeping your money in a savings account?
Interest
What is “paying yourself first” in personal finance?
Setting aside money for savings before spending on anything else
Name one factor that impacts your credit score.
Payment history, credit utilization, length of credit history, new accounts, credit mix.
What does “diversification” mean in investing?
Spreading investments across different assets to reduce risk
I am full of holes but still hold water. What am I?
A sponge!