Financial Institutions
What is overdraft protection (i.e. fee)?
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 a budget?
A plan for how to spend and save your money.
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.
What's the difference between a checking and savings account?
Checking accounts are typically used for everyday spending.
Savings accounts are primarily used to save and grow your 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.
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 score?
A rating based on the info in your credit report.
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.
How do identity thieves steal your information?
Acceptable Answers
By accessing documents that are left unsecured
Scamming people into giving up their information through mail, email, or phone calls
Going through the mail that has been discarded improperly
Hacking into online accounts
Intercepting internet activity on unsecured WiFi networks
Phishing
What is a credit report?
A record of how you have repaid your debt that lenders report out to the 3 credit reporting agencies.
How much money does a FDIC or NCUA bank account protection?
$250,000 per account holder per 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 are some ways to avoid 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
Limit your paper trail & guard your data
Shred personal information before discarding
What are the 3 credit bureau agencies?
Equifax, Experian, & TransUnion
What is ChexSystems?
A database that banks use to track people who mishandle bank accounts.
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 are some ways you can stay safe online?
Acceptable Answers
Ensure you're using private WiFi networks & secure websites when accessing accounts online.
Avoid using the same password & user name for multiple accounts.
Keep your computer software updated & download the latest versions of your operating systems, web browsers, and apps.
Be on the lookout for web links that seem suspicious, messages that look real but are a little off & deals that are too good to be true.
Name 2 common mistakes that can hurt your credit.
Acceptable Answers
Having too many credit cards
Opening too many new accounts or loans in a short period of time
Not notifying creditors when you move or change names
Not using your full legal name of financial documents