Checking Accounts
What is a deposit? What is a withdrawal?
A deposit puts money into the account. A withdrawal takes money out.
How do you build credit?
Making on time payments.
What is the purpose of a savings account?
To save!
What is budgeting?
A way to track your income and spending.
How old do you have to be to work at a bank?
Most banks require that you are 18 and also meet other requirements.
How old do you have to be to make an account?
On your own, 18! But, with a parent or guardian to help, there is teen checking for teens ages 13-17!
Name two examples that uses your credit score.
Loans and credit cards
Is there only one type of savings account?
No!
There is a personal savings account, a money market, a CD, Etc!
What is a need? What is a want?
A need is something you have to have, like food, electricity, your rent.
A want is something you don't need, like new clothes, that brand new car compared to a used car, going to the movies.
How can you save if you do not make a lot of money?
set a budget, prioritize, use saving tools such as coupons and discounts to help with spending.
What is overdraft?
When your account falls into the negatives.
Why is it important to check your credit regularly?
To identify errors or fraudulent activity that could affect your credit score.
How much should you put into savings?
A common rule is to put at least 10% of each deposit into your savings.
What tools can you use to set a budget?
Anything!
Some use microsoft excel, some use paper spreadsheets, some use the envelope method.
How do banks decide who they approve things for?
Credit Scores, banking history, reasons for requests.
Who can access my account?
Anyone who is on the account! If your name isn't listed on the account, you don't have any access!
What are pros and cons of a credit card?
Pros: convenient, builds credit, some have rewards and benefits.
Cons: Easy to overspend, high interest rates, not paying negatively affects credit score.
Are there interest rates in savings?
Yes! but, not as a fee. It helps you build your savings!
What is the 50/30/20 rule?
50% goes of your money goes to needs.
30% goes to your wants.
20% goes to your savings and paying down debt.
How long does it take to fix credit?
The time frame varies depending on the reasons for the low score and what actions you take to improve your score. It can be a matter of weeks, or sometimes even years.
How do student loans work?
Student loans are financial aid options that allow students to borrow money to cover educational expenses, which must be repaid with interest generally 6 months after graduation. Most use FAFSA, since typically banks do not offer student loans.