BANKING BASICS
A machine used to withdraw cash or check your account balance without visiting a bank.
What is an ATM?
A card that pulls money directly from your checking account when you make a purchase.
What is a debit card?
This type of card lets you borrow money that must be paid back later.
What is a credit card?
Money set aside to cover unexpected expenses like car repairs or medical bills.
What is an emergency fund?
A warning that your account balance is getting too low.
What is a low balance alert?
The amount of money currently in your bank account.
What is a balance?
A record used to track checks written, deposits made, and withdrawals.
What is a check register?
A fee charged when you spend more money than you have in your account.
What is an overdraft fee?
Money earned on your savings, paid as a percentage of your balance.
What is interest?
A monthly fee some banks charge just for having an account.
What is a maintenance fee?
Money added to your account, such as cash, checks, or electronic transfers.
What is a deposit?
Depositing a check by taking a photo with your phone.
What is mobile deposit?
Choosing not to allow transactions that would bring your account below zero.
What is opting out of overdraft protection?
Interest earned on both your original savings and previously earned interest.
What is compound interest?
The amount of money you must keep in an account to avoid fees.
What is a minimum balance?
A monthly document showing deposits, withdrawals, fees, and balances.
What is a bank statement?
A service that allows you to pay bills electronically through your bank.
What is online bill pay?
Naomi has $45. She spends $20 and $15, then tries to spend $12. This transaction is denied because she doesn’t have enough money.
What is insufficient funds?
A savings option that locks your money for a set time in exchange for a higher interest rate.
What is a certificate of deposit (CD)?
A strategy where you save money before spending on anything else.
What is Pay Yourself First?
Insurance that protects your bank deposits up to $250,000 if the bank fails.
What is FDIC insurance?
Having your paycheck automatically transferred into your bank account.
What is direct deposit?
A disadvantage of prepaid cards compared to debit or credit cards.
What are fewer consumer protections? (also accept: fees, no credit building)
Why compound interest is more powerful over long periods of time.
What is earning interest on interest?
Two strategies someone can use to avoid bank fees.
What are maintaining a minimum balance, setting alerts, avoiding overdrafts, using direct deposit, choosing no-fee accounts?