Bank Accounts
What is the primary purpose of a checking account?
manage daily transactions
What does FDIC insurance protect
deposits up to $250,000
How much should your emergency fund have once you're debt-free and working
3–6 months of living expenses
What does the 50/30/20 rule represent?
a budgeting strategy
What is one major difference between debit and credit cards?
debit cards withdraw instantly from your account
Which type of account typically earns interest
savings account
What is one common fee associated with checking accounts
an overdraft fee
What is the goal of an emergency fund?
have cash on hand for unexpected events
What’s the first step when planning a large purchase?
deciding how much to save and the time frame
Which group is most likely to live paycheck to paycheck? (Generations)
Millennials
Which account type offers the highest interest but restricts access?
Certificate of Deposit (CD)
What is one disadvantage of prepaid cards
fewer protections than credit cards
What percentage of Americans have less than $1,000 saved for emergencies?
45%
Which account pays more interest but may require a higher balance?
High-Yield Savings Account
True or False: Credit cards use your own money.
False
Which account is best for saving with occasional access
Money Market Account (MMA)
What does it mean to be “unbanked"?
not having a checking or savings account at a bank
True or False: Debt is a tool to make you wealthy.
False
Which account is basic, low interest, and good for beginners?
Traditional Savings Account
Do debit cards build credit
No
Match this description: “Used for daily transactions like bills and shopping."
checking account
Name two safety features banks use to protect online accounts.
multi-factor authentication and encryption
What is a millionaire’s best friend?
compound growth
Which account type is a mix of checking and savings with limited check-writing?
Money Market Account
What is one reason credit cards may be preferred over prepaid cards?
Helps build credit