Debit Cards and Checking Accounts
Define what a checking account is.
An account that holds the money you can spend on bills, activities, food, goods, and needs.
What's the third part of a check?
The transaction trading number.
What is net pay?
Total pay after taxes and reductions.
What is interest?
The cost of borrowing money or the profit earned from lending it.
True or false? Renters insurance would pay for people in car wrecks.
False
Define a debit card.
A card connected to your checking account that can be used to make purchases.
What's the first part of a check?
The bank's identity.
What is a paystub?
Basically your paycheck.
What is one risk of credit?
You can easily go into debt.
What type of insurance protects cars and people in wrecks.
Car/auto insurance.
What is one advantage to using a debit card?
Avoid debt or accesibility.
Why can an incorrectly written check cause financial problems?
It could put you in debt.
What is gross pay?
Total pay before taxes and reductions.
Define credit.
The ability to borrow money or access goods and services with the promise you will pay the money back later.
What type of insurance pays for medical needs?
Health insurance.
What is one disadvantage to using a debit card?
Risk of overdraft or less fraud protection.
How does balancing a checkbook prevent overdraft fees?
It helps you know your balance so you don't spend more money than what you have.
When is simple interest typically used?
For short term loans.
What is one benifit of credit?
You don't have to use money from your account.
Why is insurance considered protection against risk?
Because it helps you out finacially by paying for or paying partially for accidents, damages, death, and healthcare.
Define Balance.
The total amount of money in your account.
Whats the last part of writing a check?
Putting your signiture.
What is simple interest?
The easy way of calculating interest.
Why do most people go into debt?
Because of debt from credit cards.
What type of insurance pays for your death?
Life insurance.