Savings Account
The primary purpose of a savings account is to spend money on everyday things like bills. True or False
False- The purpose of a savings account is to save money.
What are three examples of flexible expenses?
What is fast food, newest iphone, starbucks etc.
Checking
What is direct deposit?
What is having your paychecks get sent directly to your checking or savings account right away on payday.
What is the word that means adding money to your checking or savings account?
Deposit
The bank will charge you a fee.
What are three examples of fixed expenses?
What is groceries, housing, utilities, clothes, etc.
Money in your checking account should be used for emergencies only. True or False.
False- checking account money should be used for everyday things, like bills or money to go out for dinner.
How frequently do you get a bank statement?
What is every month.
What is it called when you take money out of your checking or savings account? Also known as any time you have an interaction with a bank.
Transaction
You should use a savings account for things that you WANT to buy, not things that you NEED. True or False.
False- You should use a savings account for things like new tires or medical bills. Similar to an emergency fund.
What is the purpose of a Bank Statement?
What is being able to see what is going in and out of your account in the past month.
What are some reasons to open a checking account?
What is easy access to money, withdrawal cash from an ATM, online purchases, debit card, and easy to pay bills.
What are benefits to direct deposit?
What is convenience, easy access, safe and secure option.
What is it called when you take money out of your checking or savings account?
Withdrawal
What is the recommended percentage of your paycheck that should be saved?
What is 20 percent
What are the three components (with the correct percentage) of the 50, 30, 20 rule?
What is 50% fixed expenses (bills), 30% fun, and 20% savings.
What is a checking account?
What is a spending account, connected to personal checks and a debit card.
What are some features/benefits that online banking has for people who use it?
What is easy access to bills, easy to check account balance, transferring to another account or person.
What is the difference between flexible expenses and fixed expenses?
A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside. These are non-essential expenses that stand in contrast to fixed expenses.
What are some reasons people save their money?
What is future expenses, a house, a new car, a boat, vacation, emergencies, college, and retirement.
What is an overdraft fee?
What is a fee the bank charges you if you do not have enough money in your account to cover an expense.
What happens when you spend more money than you have in your checking account?
You overdraft your account/your debit card will be declined.
What are four different reoccurring monthly payments you would want to set up online bills pay for?
What is housing utilities, mortgage/rent, phone, and car payments.
What is the amount of money that you have in your bank account?
Balance