What's the difference between a debit card and a credit card?
A debit card pulls money out of your checking account with each transaction (i.e. using your own money).
A credit card is like taking out a loan with each transaction made (i.e. not using your own money).
What is identity theft?
When someone steals someone else's personal information and uses it to purchase goods or services.
Why is it important to track your expenses?
Acceptable Answers
It helps you understand your spending habits and where your money is going.
It helps your identify where you can cut back if you have an unexpected expenses or need to start saving more.
If helps identify if your spending aligns with your priorities (needs vs wants) and savings goals.
What is a budget?
A plan for how to spend and save your money.
What is overdraft protection?
Authorizing your financial institution to loan you money or transfer money from one of your others accounts for a fee, so that you can make a purchase when you don't have enough money.
What is phishing?
The act of fooling a computer user into submitting personal info by creating a counterfeit website or email that looks like if should be trusted.
What is the difference between needs and a wants?
A need is something necessary to live/for survival.
A want is something desired but not necessarily needed to live/for survival.
What are the 3 components of a budget?
Income - money coming in
Expenses - money going out
Savings - financinal goals.
What's the difference between a routing number and an account number?
A routing number is a nine-digit number that identifies the financial institution that holds your account.
An account number is a unique number that identifies your specific account within that financial institution.
Name 2 ways to identify a text message or email is a scam.
Acceptable Answers
The URL link isn't secured
Spelling or grammatical errors.
A time limit for a response/sense of urgency messaging.
You can't confirm who sent the message or email / the sender's email doesn't match the name in the email.
What is the difference between a fixed expense and a variable expense?
Fixed expenses are recurring expenses of typically the same amount.
Variable expenses are expenses you have control over when and how much you spend. These expenses may not recur each month.
According to the 50/30/20 budget model, 50% of the budget should go towards what?
Need expenses