Banking 101
Name 2 forms of acceptable ID you can use to open a bank account
Acceptable Answers
Driver's License
Passport w/ photo
State ID
Permanent Resident Card
Social Security Card
Student ID w/ photo
What is a budget?
A plan for how to spend and save your money.
What is identity theft?
When someone steals someone else's personal information and uses it to purchase goods or services.
What is a credit score?
A rating based on the info in your credit report.
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.
What is the difference between a need and a want?
A need is something necessary to live/for survival.
A want is something desired but not necessarily needed to live/for survival.
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 a credit report?
A record of how you have repaid your debt that lenders report out to the 3 credit reporting agencies.
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 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.
Name 1 way 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.
Name 2 mistakes that can hurt your credit.
Acceptable Answers
Paying late / missing a credit payment.
Using too much credit/spending over your credit limit.
Opening too many new accounts or loans in a short period.
Closing a credit card account.
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 are the different sections/components of a budget?
Income - money coming in
Expenses - money going out
Savings - financinal goals.
Name 2 ways to protect yourself from identity theft.
Acceptable Answers
Keep birth certificate, social security card, and other personal documentation in a safe, secure place (not with you!)
Don't give your personal information or social security number over the phone or the internet unless you're talking to a reputable organization AND it's necessary to do so.
Avoid having checks mailed
Avoid using the same password for multiple accounts
Limit your paper trail & guard your data
Use private WiFi networks and secure websites when accessing accounts online
Shred personal information before discarding
What are the 5 factors that make up a credit score?
Payment History
Credit History
New Credit
Types of Credit Used
Amounts Owed