Checking
How often do customers typically receive a bank statement for their checking account?
Monthly
Which of the following is an effective strategy for personal saving?
2. Save a certain percentage of each paycheck and deposit it directly into a savings account
Name 3 person-to-person payment apps.
Zelle, PayPal, Venmo, CashApp, Apple Pay, Samsung Pay, Google Pay, WorldRemit
True or False: Overdraft protection is a required feature of most checking accounts with no ability to opt out.
False. Overdraft protection is optional.
True or False: The majority of Americans do have an adequate emergency fund or sufficient amounts of money saved for retirement
False
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?
It is deducted directly from your checking account
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Months
Which of the following statements is an advantage of online banking?
3. Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
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?
4. Contact her bank immediately as it appears that her account may have been hacked
When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
Fill in the blanks: Direct deposit typically refers to when your ______ sends your ______ electronically to your bank account.
employer, paycheck
Three of these statements best describe a checking account. Which statement best describes a savings account?
2. This account pays you interest on money you have put away for later to help your money grow
A person-to-person payment app could be used in each of the following scenarios EXCEPT...
4. Mia pays Cheesy Pizza Co. for a pizza she orders on their website
FDIC Insurance is...
Protection for bank customers’ deposits up to $________
$250,000
Fill in the blanks with the correct responses: If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
Needs, wants, savings
Which of the following transactions will REDUCE your checking account balance immediately?
Using your debit card to pay for shoes at the mall
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
30 months
What are 2 advantages of online banking?
All of the following are ways that you can keep your online bank account safe EXCEPT…
4. Banking with small banks and credit unions because they are less frequently the target of fraud
All of the following are true about prepaid cards EXCEPT…
3. Prepaid cards are a great way to build credit
Name 3 functions of a checking account.
ATM withdrawal using a debit card, cash checks, direct deposit, transfer money to/from another account, use online bill pay, make purchases with a debit card, write a check, make a mobile deposit, online/app banking, cash deposit
Which represents the BEST time to start saving for your retirement?
1. As soon as you have your first full-time job
What might be the benefit of setting up a recurring payment through online bill pay?
You can set up online bill pay as a recurring payment so you don’t have to remember the bills yourself
What is the most frequently charged fee on checking accounts?
Overdraft Fees
True or False: Savings accounts earn higher returns than investments in the stock market
False
What questions should you ask before opening an account at a national bank, community bank, or credit union? (choose all correct answers)
All of them
What is compound interest?
Compound interest is interest made from interest.
What is direct deposit?
Your paycheck funds are deposited electronically directly into your account instead of being issued as a paper check.
What is an ATM fee?
ATM usage fees are the fees that many banks and interbank networks charge for the use of their automated teller machines. Typically, these fees are assessed solely for non-members of the bank.
What are TWO mobile banking alerts you can set up to monitor your account/protect your money?
All of the following are reasons to open a checking account EXCEPT…
4. Earn interest on your deposits
Which of the following is TRUE when comparing savings accounts and certificates of deposit?
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
You should avoid doing online banking on public ______.
WiFi
What is an excessive transactions fee?
A fee charged for making more than six withdrawals and transfers per month in a savings account, typically between $3 and $25 per transaction
A _________ __________ does not use paper or coin currency for financial transactions. Instead, all transactions are electronic.
Cashless society
Why is it important to review your bank statement each month?
Your bank statement includes a list of every transaction and it’s important to review this list for any mistakes. Your bank will also include any changes to the terms of your account on a bank statement.
Which of these lists ranks the savings options from highest expected interest rate to lowest expected interest rate?
10-year CD, 5-year CD, Online savings account, Savings account at traditional bank
What information will you need to provide to your employer to set up direct deposit?
Your bank’s name, your account number, and the bank’s routing number. Alternatively, you can give them a voided check which has all of this information on it.
How much money is the average overdraft fee (rounded to the nearest dollar)?
$24.93 ($25)
What does it mean to live paycheck to paycheck?
If you’re living paycheck to paycheck, you might not be making enough money to cover your expenses OR you’re just barely making ends meet. If this is the case, there is no money left over after you’ve paid for basic necessities to save.