Financial review

Banking

100

What is the purpose of a checking account?

To store money for daily use and make transactions easily.

200

• What does FDIC do?

• It protects your money in the bank

300

• What is the difference between a bank and a credit union?

• A credit union is member-owned, banks are not.

400

• What is an overdraft fee?

•  fee for spending more money than you have.

500

• What is compound interest?

• Earning interest on interest

Budgeting and behavioral economics

100

• What is a budget?

• A plan for your money.

200

• What does “pay yourself first” mean?

• Save money before you spend it.

300

• What is a want?

• Something fun, but not needed

400

• What is opportunity cost?

• What you give up when you choose something else.

500

• What is loss aversion?

• People hate losing money more than they like gaining 

Credit

100

• What is credit?

• Borrowing money to pay later

200

• What is a credit score?

• A number that shows how good you are with money.

300

• How can you build credit?

• Pay bills on time.

400

• What’s the difference between a credit and debit card?

• Credit uses borrowed money, debit uses your money.

500

• What is APR?

• The cost of borrowing money 

Insurance

100

• What is insurance?

• It helps pay for big problems, like accidents.

200

• What is a deductible?

• What you pay before insurance helps.

300

• Why get health insurance?

• It helps pay doctor and hospital bills.

400

• What is renter’s insurance?

•  It protects your stuff in a rented home.

500

• What is a premium?

• The payment you make for insurance

Investing

100

• What is investing?

• Using money to try to make more money.

200

• What is a stock?

• A small part of a company you can own

300

• What is diversification?

• Putting your money in different things to lower risk.

400

• What’s the difference between Roth IRA and Traditional IRA?

• Roth is taxed now, Traditional is taxed later.

500

• What does risk vs. return mean?

• Bigger risk might mean bigger reward.