Bank Accounts
What are two types of bank accounts?
Checking and savings
What is credit?
Credit is a contractual agreement involving borrowing, then repaying with interest. A borrower receives a sum of money or something else of value and commits to repayment to the lender later, typically with interest.
What is an example of a need?
Housing, food, water, clothes, transportation
Do you want a savings account with a low or high interest rate?
High! The higher the interest rate, the more money you earn on your savings.
What is difference between a credit card and debit card?
What is an example of a want?
TV, games, makeup, new car
What type of bank account is attached to a debit card?
Checking
Do you want a credit card with a high or low interest rate?
Low! The lower the interest rate on the money you have borrowed, the less interest you have to pay back.
What kind of account is best for saving money?
A savings account
What are examples of reliable banks?
Wells fargo, Regions, Bank of America, Chase Bank, Capital One
What is considered a good credit score? What types of things impact your credit score?
670-739.
- How much debt you have - Repayment history
-How many credit accounts you have open / how many loans you have
What is the 50-30-20 rule?
50% of income should go for needs
30% of income should go for wants
20% of income should go for savings
How old do you have to be to open a bank account on your own?
18 years old
Through credit reporting agencies like credit karma, Experian, Equifax, and TransUnion
Should you budget? If so, how often should you adjust or evaluate your budget?
Yes! You should look at your budget monthly and adjust if needed (like if you start making more money or have new expenses)