Banking 101
Driver’s License (state-issued)
State ID Card (if you don’t drive)
Passport (U.S. or foreign)
Permanent Resident Card (Green Card)
School ID (usually required along with photo ID, but usually needs to be paired with another form like a birth certificate)
Social Security Card/ Individual Taxpayer Identification Number (ITIN) (usually required along with photo ID)
What are acceptable forms of ID 🪪 to open a bank or credit union account?
This is your money game plan, it shows how much to spend, save, or earn so you don’t run out.
What is a budget?
📩Income = money coming in (earn).
📤Expenses = money going out (spend).
💰Savings = money put away (save).
Setting aside money for yourself before spending on anything else. The future you will thank you!
What is saving 🤑 (Pay Yourself First)?
A rating based on the information in your credit report that shows how well you handle borrowed money.
This rating is like your money GPA.
What is a credit score ✍️?
Equifax, Experian, and TransUnion
What are the 3️⃣ major credit reporting agencies/ credit bureaus?
A nine-digit number that identifies your bank/credit union.
VS.
A unique nine-digit number that identifies where you deposit (put) and withdraw (take out) your money.
What is the difference between:
...a 💸 a routing number
VS.
...a 💸 an account number
Something necessary to live/for survival, like rent and groceries.
vs.
Something desired/not necessary for survival, like concert tickets or video games.
What is the difference between:
...a 💸 need (ie: could be a recurring expense)
VS.
...a 💸 want (ie: could be a varied expense)?
This kind of interest grows your money faster because you earn interest on your original savings and the interest that’s already been earned.
In other words, your money is earning money, and then that money earns more money.
What is compound interest?🪴
👉 Examples:
Paying late / missing a credit payment
Using too much credit/spending over your limit
Opening too many new accounts or loans too fast
Closing a credit card account (especially your oldest one)
What are the mistakes that hurt 🤕your credit score?
(From paying bills on time, to keeping balances low, to having a mix of credit, these are the main ingredients that make up a better credit score)
If you spend more money than you have in your checking account, your bank may charge you this fee and let you buy the item.
What is overdraft protection? (❌ avoid it)
👉 Examples:
50/30/20 Rule – Split your money into essentials, fun, and savings.
Zero-Based Budgeting – Every dollar and cent gets an assignment.
💹What are the different types of budgets/approaches to budgeting?
This word describes how much loss you can handle when making money decisions, especially when investing.
What is risk tolerance 🎲 ?
Payment history → paying bills on time
Amounts owed → keeping balances low
Length of credit history → how long accounts have been open
Credit mix → having different types of credit
New credit → not opening too many accounts at once
What are the 5️⃣ factors that make up a credit score?