1.1
What does FDIC stand for?
Federal Deposit Insurance Corporation
Define overdraft fees?
An overdraft fee is a charge from your bank when you spend more money than you have in your account.
What is a check register?
A check register is personal record (a list on paper or electronic) you create of all of your transactions and your current balance.
List 3 methods people used in 1920 to pay for things?
Cash
Check
Money Order
Chicken
Vegetables
Jam
Department store credit cards
What is the purpose of a bank statement?
It provides a list of all transactions on your account from the previous period, including withdrawals, deposits, and fees.
List 3 ways we can deposit and 3 ways we can withdraw money from our checking account?
vAt a bank branch
Through an ATM
Direct deposit from your employer
Electronic transfer in from another account
Mobile app deposit
3rd party app (ex: person-to-person payment)
At a bank branch
Through an ATM
Use debit card to make a purchase in-person/online
Write a check
Electronic transfer out to another account
Online bill pay
Mobile app withdrawal/payment
3rd party app (ex: person-to-person payment)
True or False?
An overdraft fee cannot be waived
False
WHY would you want to use a check register?
and how often should you update it?
●To identify bank mistakes
● Avoid bounced checks
● Helps you stay on top of transaction and know how much you can afford to spend
As often as possible; every time you make a transaction; some people do weekly or even daily
Picture yourself moving out on your own or maybe with a roommate, working your first full-time job. List 4 people or company you might want to pay regularly by using online bill pay?
Rent
Electric company
Car Insurance
Credit card
What is misleading about the term overdraft fees?
The term “overdraft protection” implies something beneficial. You think that overdraft protection will keep your money safe when in fact, you are actually opting-in to another costly bank fee.
What is the main difference between a debit, credit and prepaid card?
A debit card is one used to accesss funds from your personal bank account.
A credit card is one given by a bank with a credit limit. (it uses the bank's money)
A prepaid card is one that can be purchased at a retail store and be credited with cash for online purchases, paying bills etc. It is not connected to a bank.
a. How much money do the women of the financial district recommend keeping in your checking account?
b. How much do they recommend for your emergency fund (a savings account)?
Keep one full paycheck in your checking account at all times
Keep 6 months worth of expenses in your savings account in a rainy day fund.
You receive a check for $50 from your Aunt Louise for your birthday. You go to an ATM to deposit the check into your checking account. How should you endorse the check?
a. Just sign your name on the front of the check
b. Sign your Aunt Louise's name on the back of the check
c. Sign your name and write "For Deposit Only" and your checking account number on the back of the check
d. Since the check is made out to you, you don't need to worry
about signing the check
c. Sign your name and write "For Deposit Only" and your checking account number on the back of the check
How is Apple pay more secure than using a debit card?
Your name, debit card number and security code are not shown to the retailer.
What two items do you need to reconcile your checking account?
Monthly bank statement & Check Register
List 3 ways in which a prepaid card is different from a debit card?
●Is not linked to a checking
account
● Is not linked to a bank
● Typically charges a fee to
put money ONTO the card
● Also sometimes has fees for
using the money on the card,
viewing a statement, etc
In your own words, describe the following alerts
Low balance
Direct deposit
Unusual activity
Low balance - An alert (usually a text or email) when your bank balance drops below a certain amount that you set.
Direct deposit - Your paycheck is sent electronically to your account and you receive an alert when the money is available and ready for you to use.
Unusual Activity - This alert notifies you if there is any unusual behavior on your bank account and helps you avoid fraud.
List the 3 steps necessary in balancing your account?
Write down your transactions in the check register
Cross-check your registry against your bank’s records
Update your account balance regularly
List 3 potential downsides do you see for using a digital wallet payment?
They are not as widely accepted as cash
If your phone runs out of battery, you will not be able to make your payments
You may overspend because it's so easy to spend without even thinking about the money.
List 4 fees that can be charged by a bank
Overdraft fees
Monthly maintenance fees
ATM withdrawal fees
Statement fees
What are 4 disadvantages of being locked out of, or choosing not to belong to, the traditional banking system?
●You are charged fees when utilizing the services of a check casher.
● Fees are charged when using a prepaid card
● Gas must be spent to cash checks and pay bills
● You have to find a way to turn cash into money on a card in order to online shop.
● You have to spend time visiting check casher, paying bills in cash, etc rather than automating a lot of that with a checking account.
What is the largest frequently charged fee on checking accounts?
a. ATM fees
b. Overdraft fees
c. Monthly maintenance fees
d. Statement fees
b. Overdraft fees
Explain in your own words how you reconcile your account
Reconciling your checking account means cross-checking all of the transactions in your own records with those of the bank to ensure they match.
It is the process of comparing your own records to the records provided by your bank.
List 3 ways wherein using a digital wallet payment is similar to using a debit card?
You need to enter a pin/password or fingerprint to authenticate purchases.
If your debit card is used in your digital wallet, funds will come out immediately from your checking account
An electronic record of your payment is generated.
How would you write in words a check for $365.01
Three hundred sixty five and 01/100----