Bank Accounts
Name all 4 bank accounts.
HINT: we discussed this in class.
1. checking
2. savings
3. money market
4. certificate of deposit
What is easier to do when you have good credit/financial records?
Borrow money or get a loan.
What is a withdrawal?
When you take money out.
What is a budget?
A spending plan based on income & expenses.
Which bank account comes with a debit card and check book?
Checking account
Which bank account has a modest interest rate & no minimum balance?
Savings
What is a credit limit?
A set amount of money approved & borrowers can access the money whenever they want.
What is a deposit?
When you put money in.
What is the difference between wants & needs?
Wants: things you can survive without
Needs: things you need to survive
What is the minimum balance for a money market account?
$5,000
Which account can you not access the money due to the term length?
HINT: it may last 3 months to 5 years
Certificate of deposit
Credit is known as ___________________ credit.
Revolving
T/F: If you make a mistake on a check, you should write the word CANCEL on it.
False; you write VOID
What are 2 examples of income for a 13 year old?
1. birthday money
2. allowance
3. money from part time jobs
What account has a higher interest rate but also a higher minimum balance?
money market
Which account allows withdrawals & deposits and can be called a personal account?
Checking
What category are these numbers in for credit score: 690-719?
Good
What is a check?
A written order to the bank saying you are giving permission to a person or business that they can take the money out of your account.
What are 2 examples of expenses for a 13 year old?
1. food
2. clothing
3. entertainment
What does a bank statement include?
- account information
- all withdrawals & deposits
- account summary
Scenario:
If Sally receives $50 a month for her allowance and she is trying to decide which bank account to put her money.
1. Which bank account would you choose for Sally & why?
Savings; she can earn interest while being able to save up her money for when she is older.
Explain in detail what credit is.
It is the issue of money, goods or services to an individual or entity with the expectation of future payments.
What is the final step before you cash a check?
Signing the back
What are the 3 steps for creating a budget?
1. add your income
2. add your expenses
3. Subtract expenses from income
What is the difference between a debit card & credit card?
Debit is your own money
Credit is money you borrow & must pay back