CHECKING ACCOUNT
This is the word for when you take money out of your account.
What is withdrawal?
True or false: if you wanted to buy the most upgraded iPhone but you didn't have enough money in your checking account, you should withdraw that money out of your savings account as your backup plan.
What is false?
Adam belongs to XYZ bank, but is driving on road and realizes that he is short on cash and needs to withdraw some money. Adam then decides to make a pit stop at the ABC bank to take out some cash. This is the type of fee Adam that will be charged for taking out money at the ABC bank, and not his bank, the XYZ bank.
What is an ATM (out-of-network) fee?
Jackie wants to buy a pair of high heels for this school year's prom. According to the 50/30/20% rule, this percentage of her annual income would be recommended for Jackie take some money out of for her to buy these high heels.
What is 30% (wants)?
Back in the day, believe it or not, an NYC metro card cost only $1 for one fare (if we go even further back it has been even less than that). Today, it is now almost $3 because of this process that always happens with the changing economy.
What is inflation?
This is the word for when you put money into your account.
What is a deposit?
This is the rate that makes the balance in your savings account go up.
What is the interest rate?
On Thursday, Evelyn had a balance of $40 in her checking account. However, because Evelyn has subscribed to a website called: www.makingbadmoneydecisions.com, she gets charged a subscription feed of $50 every Friday plus an additional fee of $10. Based on what we have learned, the additional $10 is this type of fee.
What is an overdraft fee?
Maximillian applied for college and got accepted into XYZ University. However, XYZ University is extremely expensive, so Maximillian decided to take out a loan to help him pay off this debt of college tuition over time. This is the percentage that Maximillian should use from his income to help him pay off the student loan.
What is 20%?
Although prices do go up because of inflation, so do our salaries. However, this is the reason why we should still be concerned about inflation and plan to save smarter even though our salaries continue to increase over time.
What is because prices grow at a different and sometimes faster rate than salaries?
This is the word for when you set up your paycheck to automatically be sent to your online bank account.
What is direct deposit?
This is the main difference between a checking and a savings account.
What is a savings account helps us save and invest money in the future/over time?
Bruce's bank, the Gotham Bank, charges Bruce's account $30 every end of the month so that the bank can use that money for its employees and products and continued growth of the bank. The $30 is this type of fee.
What is a maintenance fee?
Arnold make $100,000 a year. This amount of money a year should be set aside for Arnold's needs (examples: rent, food, gas, electric, traveling to and from work, etc.).
What is $50,000 (50%)?
Even when the economy is tough, or even when you are broke, there is always a chance you could end up in a car accident or in the emergency room. When that happens, this type of fund would be most useful for you to use to help pay for the car damage your car insurance couldn't cover or your hospital bill.
What is an emergency fund?
You use this card for your checking account transactions.
What is a debit card?
This type of savings account has a fixed interest rate that is held for a specific, agreed-upon period of time.
What is a certificate of deposit (CD)?
A bank robber named Arthur has stolen a debit card from someone who is a member of the Batman Bank. So, Arthur wants to rob money from an ATM at the Batman Bank. However, Arthur gets confused and ends up attempting to rob from an ATM at the wrong bank, the Batman and Robin Bank. Arthur, or the stolen debit card, will be charged an ATM because the Batman and Robin Bank is this type of network.
What is out-of-network?
Arnold, who makes $100,000 a year, also has another set amount of money aside to help him buy things like movie tickets, vacation tickets, fancy clothes, and even video games and other high-tech equipment for his boy cave. This is the amount of money a year that Arnold has a set aside for these purchases (wants).
When the economy is bad and people are financially struggling, this is the reason why prices go up and inflation is still a problem.
What is because people have to make more money to keep up with the financial demand of life?
This word is for the total amount of money that is currently in your bank account.
What is your balance?
This is a type of interest rate that involves your interest rate increasing by a certain percentage every year.
What is compound interest?
Edith has a savings account but continues to withdraw money from that account, at least once a day. At the end of the month, Edith receives a bank statement stating that she was charged $15 for taking out money too many times from her savings account. The $15 is this type of fee.
What is an excessive transactions fee?
Arnold, who makes $100,000 a year, has already set aside $80,000 for his needs and wants. This is what Arnold should use his remaining $20,000 a year for.
What is for his savings/debt relief?
Even when the economy is booming and people are making good money, prices still go up and inflation is still a reality because of this reason.
What is because businesses know that they can make more money off of customers since the economy is doing so well.