Checking Accounts
What are ways to deposit money into your bank?
Atm, online banking, in-person banking, direct deposit
What is compound intrest?
Earning interest on the interest you earned.
What does it mean to be unbanked?
The term unbanked describes people without a checking or savings account.
What is a payday loan?
Short-term loan with extremely high interest rates.
What is the equation for net worth?
Your assets minus your liabilities.
The sheet that the bank sends you each month.
What is Bank statement.
What is the difference between checking and saving accounts?
Checking accounts is money to be spent. Savings accounts is money to be saved, and earn interest on.
What percent of teens have opened a bank account?
49% of teens have opened a bank account.
What is the recommended amount of money you should save?
Roughly 20% of your income
What is a 401k?
A retirement plan set up by the US government and your employer.
What are two advantages of having an account at a local bank vs. a national bank?
Community banks usually have lower fees.
Community banks give back to their local communities
How does the age that a person starts saving impact the amount they can earn in compound interest?
The earlier you save the more interest you earn resulting in the more compound interest earned.
What is a title loan?
A loan based on the value of your car. You give the title to the loan company as a safety for the company.
What percentage of American’s live Paycheck to Paycheck?
Roughly 76%.
What is inflation?
Rise in average cost of goods/services over time.
What is the FDIC and what does being insured mean?
FDIC The Federal Deposit Insurance Corporation. Your money is insured up to $250,000 by the government.
What percentage of Amercians couldn’t not pay a surprise 400$ bill, due to a lack of savings?
What is 32%.
What is a prepaid card and how do you use it?
Prepaid cards are issued by banks and you only have access to the money you loaded onto it?
What is the 30 20 50 rule?
The idea is that you divide your income into three categories. 50% on necessities, 30% on wants, and 20% on savings (10% invest, 10% emergency fund).
What are the two major stock exchanges?
NYSE and NASDAQ
What is the mathematical formula that you would use to describe the financial activity on a bank statement?
Ending balance = previous balance + deposits - withdrawals
What are the four most popular savings accounts?
Traditional savings account, money market deposit accounts, certificates of deposit, U.S Savings bond.
What is a Check Cashing store? And who typically uses these type of stores?
Being unbanked means things like cashing checks and paying bills are costly and time-consuming. Those who are unbanked often rely on check cashing services/stores, to cash paychecks because they don't have access to direct deposit.
Budgets will only work if you…?
Write it down, stay away from places that tempt you, stay consistent, and remember why your doing it.
What is the compound interest formula?
A=p(1+r/n)nt