Banking Basics
Which type of bank account is best for everyday transactions?
Checking Account
Where should you look to find your current expenses when making a budget?
Bank and Credit Statements
What is the cost of borrowing money called?
Interest
What happens to your credit score when you make a late payment?
It goes down
Give 2 examples of:
WANTS
NEEDS
answers will vary
What does the bank charge you when you spend more money than is in your account?
Overdraft Fee
This is a type of expense that is different from month to month
Variable Expense
What is the name of a person, or institution, that charges very high interest rates for their loans?
Loan Shark
What does APR stand for?
Annual Percentage Rate
Health Insurance
Which type of bank account offers interest?
Savings Account
Emergency Fund
The length of time someone has to pay back a loan is called what?
Term
True or False: Having a great credit score will make it easier to get a home or car loan.
The amount of money you must pay out of pocket before your insurance kicks in.
Deductible
What type of card accesses your checking account?
Debit Card
True or False: Charitable donations are not included in a budget
FALSE
What is the term for interest that you earn on interest?
Compound Interest
Only paying the minimum balance on your credit card can lead to what?
Paying more interest
A request made to an insurance company for payment or coverage after an event occurs.
Claim
What does ATM stand for?
Automated Teller Machine
Auto Insurance is an example of a ____ expense when making a budget
Fixed
What is the term for the original amount of money you borrow on a loan?
Principal
What is not important to consider when selecting a credit card?
The look of the card
What must you have in order to drive LEGALLY?