Checking Accounts
True or False
A checking account helps you to make long-term financial transactions.
False
A checking account helps you to make daily financial transactions.
True or False
You can earn more money when you use a savings account.
True
What is a debit card?
A debit card is a plastic payment card that can be used instead of cash when making purchases.
What is a credit card?
A credit card is a plastic card that gives access to a line of credit.
A common advantage of using credit is...
A. Less impulse buying
B. Lower cost for items purchased
C. Ability to obtain items now
D. Lower chance of overspending
C. Ability to obtain items now
What are some ways you can deposit money into your checking account?
Direct deposit, by mail, through an app, at an ATM, at a bank, or online.
True or False
You can access the money in your savings account through your debit card or through checks.
False
You have to make transfers to your checking account to access it.
Which account does the money come out of when you use your debit card?
Your checking account.
True or False
Interest rates on credit cards are usually fairly low.
False
Interest rates on credit cards are usually very high.
You may pay more for an item bought on credit because of....
Interest payments
What are some ways you can withdraw money form your checking account?
Write a check, use your debit card at an ATM, use your debit card at a cash register, etc.
What are two kinds of interest?
Simple and Compound
What does PIN stand for?
Personal Identification Number
The grace period refers to the time...
For paying an account without an interest charge.
What is a common disadvantage of using credit?
Spending more than you should or debt.
Why should you put your money in a checking account?
It keeps your money safe.
What are two different types of savings accounts?
Regular savings account, certificates of deposit, and money market account.
What are some things you should avoid when making your PIN?
Birthdays, anniversaries, simple number sequences, etc.
What are two pieces of information to look for on your credit card statement?
How and when you used your credit card, how much you owe, how much interest you're paying, how much the minimum payment is, how much credit you have left, etc.
What is a good way to build credit history?
Establish a steady work record, pay all your bills on time, make regular payments in a savings account, or apply for a local store credit card and pay regularly.
Banks expect you to make frequent _________________ and ______________ to checking accounts.
Withdrawals and deposits
What is the purpose of your savings account?
Your savings account puts money aside for future use.
What do you do if you forget your PIN?
Call your bank to reset your PIN.
True or False
You are required to repay the full amount on your credit card each month.
False
You are not required to pay the full amount, but you do have to pay the minimum payment so that your credit score is not affected.
What are the Three C's that banks look for when they consider customers for credit?
1. Character
2. Capital
3. Capacity