Financial Institutions
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).
Why is it important to track your expenses?
Acceptable Answers
It helps your understand 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 identity theft?
When a person steals someone else's personal information (SSNC or Bank Account) and uses them to purchase goods or services.
What is credit?
Money that is loaned to you and paid back with interest.
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.
Name a method people use to scam others.
Acceptable Answers
Online shopping scams
Phishing
Scam emails or text messages
Card cracking scam
What is a credit score?
A rating based on the info in your credit report.
What is overdraft protection?
Authorizing your financial institution to loan your 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 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.
Name 2 ways to identify a text message or email is a scam.
Acceptable Answers
URL link isn't secured / padlock is open.
Spelling or grammatical errors.
A time limit for a response/sense of urgency messaging.
The deal appears too good to be true.
You can't confirm who sent the message or email.
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'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 (usually between eight to twelve digits) that identifies your specific account within that financial institution.
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.
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.
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.
Not notifying creditors when you move or change names.
Not using your full legal name on financial documents.
Closing a credit card account.
What is the difference between a current balance and an available balance?
The current balance is the amount of money in your account, plus or minus all transactions that have cleared.
The available balance is your current balance, plus or minus any other transactions that your financial institution knows about, but that HAVE NOT cleared yet.
What are the different sections/components of a budget?
Income - money coming in
Expenses - money going out
Savings - financinal goals.
Name 3 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 3 major credit bureau agencies?
Equifax, Experian, & TransUnion