Banking Basics
Where do most people safely keep their money instead of carrying cash?
Bank or credit union
What is a budget used for?
Tracking income and expenses / planning spending
Why is saving money important?
Emergencies / future goals / security
What does it mean to borrow money?
Using money you must pay back later
What information does a pay stub show?
Income and deductions
Which type of account is usually used to pay bills and make purchases?
Checking account
Which is more important to pay first: needs or wants?
Needs
What is an emergency fund used for?
Unexpected expenses
What is a credit card used for?
Borrowing money to make purchases
What is FAFSA and why is it important?
Federal student aid application that helps pay for college
Why might someone choose to put money into a savings account instead of spending it?
To save for future goals / earn interest / emergencies
Name one example of a need and one example of a want.
(Various acceptable responses)
What might happen if someone never saves money?
Financial stress / debt / inability to handle emergencies
Borrowing money to make purchases
Protect credit score / avoid fees
What are two costs someone should plan for when moving out on their own?
Rent / food / utilities / transportation / insurance etc.
What can happen if someone shares their debit card PIN with others?Card that spends money directly from bank account
Money can be stolen / account fraud risk
Why might someone run out of money before their next paycheck?
Overspending / poor planning / unexpected expenses
What does it mean to invest money?
Putting money into something that may grow over time
What might happen if someone ignores their debt?
Collections / credit damage / legal issues
Why is it important to understand student loans before borrowing them?
Must repay loans / interest builds / affects future finances
What should someone do if they notice a charge on their bank account they did not make?
Contact the bank / report fraud / freeze account
What is one strategy someone can use to avoid impulse spending?
Waiting before buying / making a budget / comparing prices
Why is it easier to grow money if you start saving at a young age?
Compound interest / longer time to grow
Why do lenders check someone’s credit score?
To decide if they trust them to repay money
What are two ways someone can pay for college besides loans?
Scholarships / grants / savings / work study