Banking 101
What does "balance" mean in banking?
The amount of money you have in your bank account
What is the purpose of a checking account?
The purpose of a checking account is to make daily transactions (bill pay, POS purchases, ATM withdrawals,etc)
What is the purpose of a check?
A check is a written order to pay a specific amount of money from one person or organization to another.
What color do you get if you mix blue and yellow?
Blue and Yellow makes Green!
What is a common similarity between banks and credit unions?
Both banks and credit unions offer financial products and services such as savings and checking accounts, loans, and credit cards.
Daily Double
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What happens if you write a check for more money than you have in your account?
You can "bounce" a check meaning the person wont get paid, or you "overdraw" your account (which means you go in the negative and pay a fee)
What does the term "direct deposit" mean?
Direct deposit is a payment method where funds are electronically transferred directly into a recipient's bank account.
What is Drakes real name?
Aubrey 'Drake' Graham
What is the main difference between a bank and a credit union?
A bank is a "for profit" company and a credit union is a "not for profit" company.
A bank has more branches (access), products, and services for their "customers"
A credit union has better rates, less fees, and better service for their "members"
True or False: Is it TRUE that ATM stands for Automatic Teller Machine?
True!
ATM stands for Automatic Teller Machine
Why is it important to review your bank statement regularly?
Reviewing your bank statement regularly allows you to verify the accuracy of transactions, detect any unauthorized charges or errors, and monitor your spending habits and account balance.
How does a debit card transaction differ from a credit card transaction?
A debit card is tied to your banking account (using your money).
A credit card is using someone elses money with the promise to pay it back.
What is 3 squared minus 3 plus 10?
The answer is 16.
3 squared equals 9
9 - 3 = 6
6 + 10 = 16
Should you open up a credit union account?
Yes!
Credit Unions include lower fees, higher interest rates on savings accounts, lower loan rates, personalized service, and a focus on community involvement.
What is the maximum amount of (FDIC or NCUA) insurance coverage of your checking account in case the bank go out of business?
FDIC (banks) and NCUA (credit unions) coverage is $250,000.
Name 3 things you can do with Online Banking
Transfer Money between Accounts
Make Deposits
Pay Bills
Check Balance
What are the benefits of using a mobile payment app like Zelle, Cashapp, or PayPal?
Benefits include convenience, speed, and ease of splitting bills among friends or family members.
Annual Percentage Rate
It represents the annual cost of borrowing money or the annual return on investment, including interest and fees.
True or False: Anyone can join a credit union or open a credit union account
False
A membership or referral is required to open a credit union account. There are specific requirements to open a credit union checking account.
What is the purpose of a bank statement?
A bank statement is a summary of the transactions and account activity over a specific period.
What is balancing a checkbook, and why is it important?
Balancing a checkbook involves reconciling the transactions in your check register with those on your bank statement to ensure accuracy and monitor your account balance. It's important for managing finances effectively and avoiding overdrafts.
What is the significance of the security code on a credit card?
The security code (CVV/CVC) on a credit card adds an extra layer of security for online and phone transactions, helping verify that the card is in the cardholder's possession.
How does compound interest differ from simple interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.
Simple interest, on the other hand, is calculated only on the initial principal amount.
True or False: Credit unions are insured by the FDIC (Federal Deposit Insurance Corporation) like banks.
False.
Credit unions are insured by the NCUA (National Credit Union Administration), not the FDIC.