Banking
What does "ATM" stand for?
Answer: Automated Teller Machine.
What is a credit card?
A card that lets you borrow money to make purchases and pay it back later.
What is a savings account?
Answer: An account used to keep money safe and earn interest.
What does it mean to invest money?
Answer: To use money to buy something (like stocks or bonds) hoping it will grow in value.
Income
Any money you receive, including wages, bonuses, and tips.
What is the difference between a checking account and a savings account?
Answer: A checking account is for daily spending; a savings account is for saving money and earns interest.
What is a secured credit card?
A card that requires a cash deposit as collateral.
What is a high-yield savings account (HYSA)?
Answer: A savings account with a higher interest rate than regular savings.
What is a 401(k)?
Answer: A retirement savings plan often offered by employers.
Expenses
The costs required for something. In a budget, expenses are often categorized as "needs" (e.g., housing, utilities) and "wants" (e.g., entertainment, dining out).
What kind of number do you use to access your account at an ATM?
Answer: A PIN (Personal Identification Number).
What is the credit limit on a credit card?
The maximum amount you can borrow on the card.
What is a money market account?
Answer: A type of savings account that may earn higher interest and may offer a debit card or check writing.
What is a bond?
Answer: A type of loan you give to a company or government in exchange for interest.
Emergency Fund
A savings account used for unexpected expenses, such as job loss or medical emergencies.
What are two services you can do at a bank besides withdrawing money?
Possible answers: deposit checks, open an account, apply for a loan, get financial advice.
Why is paying only the minimum payment risky?
Answer: Because you’ll pay more interest and stay in debt longer.
What is a certificate of deposit (CD)?
Answer: An account where you lock in money for a fixed time to earn higher interest.
What is a stock?
Answer: A share of ownership in a company.
Asset
Any item of economic value, such as stocks, bonds, or real estate.
What is FDIC insurance, and how much does it protect per account?
Answer: It protects your money in U.S. banks up to $250,000 per depositor.
How does a credit score affect borrowing?
It influences your ability to get loans and the interest rate you pay.
If you need your money quickly, which savings option is best: CD, HYSA, or Money Market? Why?
Answer: HYSA or Money Market—because they are more liquid and easier to access than a CD.
What is the main difference between saving and investing?
Answer: Saving is safe and earns small interest; investing is riskier but can grow more over time.
Portfolio
A collection of all of your investments.