Banking Basics
You put $75 into your checking account. Is this a deposit or a withdrawal?
deposit
Sara has $189.00 in her account. She receives a direct deposit of $223.44 at midnight. What is her new balance?
$223.44 = $412.44
A debit card purchase is labeled “pending” in your banking app. What does pending mean?
Answer: A debit card purchase is labeled “pending” in your banking app. What does pending mean?
The transaction has begun but has not finished posting to the account.
Jordan’s paystub shows gross pay of $600.00 and net pay of $470.10. Which amount is his pay BEFORE deductions?
$600.00- the gross pay
Ava earns $400.00 in gross pay. Her total deductions are $65.00. What is her net pay?
$335.00.
$400.00 − $65.00 = $335.00.
You use your debit card to spend $26.50 at Taco Bell. Is this a deposit or a withdrawal?
Jay has $350.00 in his checking account. He spends $68.75 at Hibbett Sports. What is his new balance?
$350.00 − $68.75 = $281.25.
Your balance is $150.00. A pending purchase of $32.50 has NOT been subtracted yet. What will your balance be after it posts?
$117.50.
$150.00 − $32.50 = $117.50.
Ava’s paystub shows gross pay of $450.00, total deductions of $72.00, and net pay of $378.00. How much will she receive as take-home pay?
Answer: $378.00—the net pay.
Marcus’s paycheck deductions are $32.00 in federal income tax, $24.80 in Social Security, $5.80 in Medicare, and $12.00 in state income tax. What are his total deductions?
$74.60.
$32.00 + $24.80 + $5.80 + $12.00 = $74.60.
Your employer electronically sends your paycheck directly to your checking account. What is this called?
direct deposit
Mia has $125.50. She deposits $200.00 and then spends $47.25 on groceries. What is her new balance?
$125.50 + $200.00 − $47.25 = $278.25.
Your balance is $240.00. Two pending purchases—$45.25 for gas and $28.75 for food—have NOT been subtracted yet. What will remain after both post?
Answer:Your balance is $240.00. Two pending purchases—$45.25 for gas and $28.75 for food—have NOT been subtracted yet. What will remain after both post?
$166.00.
$240.00 − $45.25 − $28.75 = $166.00.
Marcus’s paystub lists a pay period of October 1–October 14 and a pay date of October 18. Which dates show when he earned the money?
October 1–October 14. These dates are the pay period.
Brianna works 24 hours at $12.50 per hour. What is her gross pay before deductions?
24 × $12.50 = $300.00.
Your bank charges you $5.00 each month to maintain your checking account. What is this charge called?
service fee
Tyler has $480.00. He pays an Alabama Power bill of $126.80, a phone bill of $55.00, and a bank service fee of $5.00. What is his new balance?
$92.60 + $315.75 − $48.90 − $76.45 − $18.00 = $265.00.
Your balance is $325.00. You wrote a $90.00 check that has not cleared or been subtracted from this balance. What is this check called, and how much money remains after you account for it?
An outstanding check; $235.00 remains.
$325.00 − $90.00 = $235.00.
Brianna’s paystub shows CURRENT gross pay of $500.00 and YEAR-TO-DATE gross pay of $8,500.00. Which amount shows her total gross earnings from the beginning of the year through this paycheck?
$8,500.00. Year-to-date means the total accumulated so far this year.
Caleb works 32 hours at $14.00 per hour. His total deductions are $73.60. What is his net pay?
$374.40.
32 × $14.00 = $448.00 gross pay.
$448.00 − $73.60 = $374.40 net pay.
What does it mean to reconcile your checking account?
Compare your records with your bank statement and account for differences to make sure your balance is correct.
Kim has $92.60. She receives a direct deposit of $315.75. Then she spends $48.90 on gas, $76.45 on groceries, and $18.00 on lunch. What is her ending balance?
$92.60 + $315.75 − $48.90 − $76.45 − $18.00 = $265.00.
Your balance is $210.00. A pending purchase of $38.50 has NOT been subtracted yet. You want shoes costing $180.00, including tax. Can you buy them without going below zero? How much would you have left or be short?
No. You would be $8.50 short.
$210.00 − $38.50 = $171.50.
$180.00 − $171.50 = $8.50.
Caleb’s paystub shows gross pay of $640.00, taxes of $96.00, health insurance of $25.00, and retirement deductions of $19.00. His listed net pay is $500.00. Is the net pay correct? Show how you know.
Yes. Total deductions are $140.00.
$96.00 + $25.00 + $19.00 = $140.00.
$640.00 − $140.00 = $500.00.
Destiny works 30 hours at $13.50 per hour. Her deductions total $62.75. She already has $87.40 in her checking account. After her net pay is deposited, she pays $125.00 for car insurance. What is her ending balance?
$304.65.
30 × $13.50 = $405.00 gross pay.
$405.00 − $62.75 = $342.25 net pay.
$87.40 + $342.25 − $125.00 = $304.65.