Managing Money
Debit Card
A banking system that enables costumers to conduct a range of financial transactions through the financial institutions website or mobile app.
Online Banking
What is an emergency fund?
Money set aside for unanticipated expenses or loss of income.
What is a savings account?
An account that pays interest on money you put away for later to help your money grow.
How many months of your expenses should your emergency fund consist of?
3 - 6 months
An automatic electronic deposit of net pay to an employee's designated bank account.
Direct Deposit
A member owned financial cooperative controlled by its members. It primary purpose is to provide credit at a low cost to its members.
Credit Union
A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth.
Wealth
A savings account typically offering higher interest rates. Are managed entirely online, with no physical bank.
Online savings account
What is the 50 - 20 - 30 rule?
A type of credit facility, provided by banks that allow customers to borrow funds within a pre-approved credit limit.
Credit Card
A commercial bank that derives funds from and lends to the community where it operates, and is not affiliated with a multibank holding company.
Community Bank
What is simple interest?
Interest paid on the principal alone.
An account opened to hold your money.
Traditional savings account
What is pay yourself first?
A method of saving where you put a fixed amount of income into a savings account before you pay monthly bills or make purchases.
What is a P2P payment?
Transactions between two parties with separate bank accounts.
A traditional street-side business that serves costumers face-to-face rather than online.
Brick and Mortar
Interest earned on both the principal amount and any interest already earned.
Compound Interest
What is a Money Market Savings Account?
An account similar to a traditional savings account but typically has a higher interest, requires a higher minimum balance, and may allow check writing.
Which is an effective strategy for personal savings?
a. Save a certain % of each paycheck and deposit it directly into a savings account
b. Wait until the end of the month and save whatever is left in your checking account
c. Cover all of your wants and needs and save whatever is left over
d. Take out a payday loan so you can save before you receive your paycheck
a. Save a certain % of each paycheck and deposit it directly into a savings account.
A mobile banking tool that allows you to deposit checks to your bank account using your mobile device.
Mobile Deposit
A type of direct bank that operated exclusively using online banking without traditional physical branch networks that challenge traditional banks.
(Ex: Chime)
Neobank
The rate at which the price of goods increases and consumer purchasing power decreases over time.
What is a Certificate of Deposit(CD)?
A savings certificate with a fixed interest rate and maturity date holding the savors money until the CD fully matures.
A popular trick to find out how long it will take your money to double depending on what interest rate you are receiving.
Rule of 72