Terms of Trade
define "Term of Trade"
tactics used by social media and marketing teams to gain attention of buyers
How often do customers typically receive a bank statement for their checking account?
monthly
paycheck to paycheck
traditional savings account
Low interest rates, easy access to money and can link to your checking account
How much is recommended to keep in an emergency fund
3-6 months of living expenses
bundling
The practice of offering multiple goods & services at a lower price than separately.
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
checking account
unbanked
money is not put in a bank and don't have bank accounts
Using a debit card at the grocery store means that money is coming out of your ...
Checking account
what is the 50 / 30 / 20
50- needs
30- wants
20- savings
The psychological nudge to do—or consume—something because others are doing it
Bandwagon Appeal
Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
contact her bank because she might've been hacked
direct deposit
typically refers to your employer sending your paycheck electronically to your bank account.
Giving your cousin $5000 to help start his business, in exchange for 5% of his monthly profits is __________ (saving or investing)
investing
true or false: prepaid cards are a great way to build credit
false
Visual images that are attractive and entertaining but unnecessary or unrelated to the subject.
eye candy
What are two reasons to check your bank account on a regular basis
To check for any errors (Transactions that may have been charged twice, etc)
To check for any fraudulent charges
To check your balance
To see if any checks you wrote have been processed (also known as “cleared”)
overdraft protection
Overdraft protection works by linking another deposit account, a line of credit or a credit card to your checking account.
whenever you withdraw more money than you have in your checking account, funds are automatically transferred from the linked account to your checking account so the transaction will clear.
Dave saved $1,000 from his summer job cleaning pools. Which account type would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
CD
When is the BEST time to start saving for your retirement?
As soon as you get your first full-time job
Having people like you speak on behalf of a product, except they’re getting paid.
Plain Folk
Identify two fees that banks typically charge on a checking account and how you can avoid them.
overdraft fee
minimum balance fee
monthly service fee
paper copy of statement fee
ATM fee
FDIC
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
Difference between MMA and traditional savings account
Money market accounts - allow you to write checks and use ATM and debit cards for withdrawals, just like checking accounts.
With a savings account, you typically have ATM access but can't write checks. You may need to take money out via electronic transfer or by calling the bank.
If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.
Higher than, gaining
Lower than, gaining
Higher than, losing
Lower than, losing
3