Terms
What does "ATM" stand for?
Automated Teller Machine
Name three common types of bank accounts
Checking
Savings
Money Market
Name three common budgeting methods:
The 50/30/20 Method
Envelope Budgeting
Traditional Budgeting Sheet
Name three common job roles you might find in a credit union:
Teller
Loan Officer
Member Services Representative
Can anyone become a member of a credit union?
No
What does "APR" mean?
Annual Percentage Rate
What is the difference between a checking account and a savings account
A checking account is for everyday money transactions, while a savings account is for saving money and earning interest.
What is the recommended size of an emergency fund?
3 - 6 months
What is the responsibility of a Credit Union Teller?
Processing transactions such as deposits, withdrawals, loan payments, and loan applications
How do credit unions typically differ from traditional banks?
They are member-owned cooperatives with a not-for-profit mission, membership eligibility requirements, volunteer-elected boards, and provide lower fees and rates
What is a credit score?
a three-digit number that rates your creditworthiness.
What is the primary purpose of an Individual Retirement Account (IRA)?
Save for Retirement
What is identity theft?
The crime of using someone else's personal information without their permission to commit fraud or other crimes.
Name one resources or programs credit unions might offer to assist members with financial literacy:
GreenPath Financial
What are some common factors that individuals consider when deciding between a credit union and a traditional bank?
Membership eligibility, fees and rates, personalized service, profit distribution, and the institution's community involvement.
What does "APY" mean?
Annual Percentage Yield
Explain the concept of an emergency fund:
an emergency fund is to improve financial security by creating a safety net that can be used to meet unanticipated expenses
Name three factors that can positively impact a person's credit score:
On Time Payment history
Credit utilization ratio
Length of credit history
What is the role of a Marketing Specialist in a credit union?
Involves developing and executing marketing strategies, promoting the credit union's brand, attracting new members, engaging with existing members, and promoting financial products and services through various channels
Why might someone choose a credit union over a bank based on specific financial products, such as auto loans or mortgages?
Credit unions often offer lower interest rates and more favorable terms due to their not-for-profit structure and member-focused approach.
What is the meaning of "overdraft"?
a deficit in a bank account caused by drawing more money than the account holds
What is a certificate of deposit (CD) and how does it work?
A certificate of deposit (CD) is a savings product that earns interest on a lump sum for a fixed period of time. CDs differ from savings accounts because the money must remain untouched for the entirety of their term or risk penalty fees or lost interest.
What is the difference between saving and investing?
Saving is the act of putting money away in a safe place to use it in the future. Investing involves putting your money into investments such as shares, funds, and property, with the hope that your money will grow.
Describe the importance of cybersecurity in a credit union's IT department:
It safeguards sensitive financial and personal information, ensures the integrity of transactions, maintains member trust, and mitigates the risks associated with data breaches and financial fraud.
How do credit unions typically determine who is eligible to join?
Geographical location, employment with a specific organization or industry, membership in an affiliated group, or family relationships with current members.