Checking Accounts vs. Savings Accounts
You are at the checkout counter at the supermarket and use your debit card. Where does the money come from?
What is a Checkings Account?
This common fee is charged when you spend more money than you have in your checking account.
What is an overdraft fee?
Experts recommend building an emergency fund to cover how long?
3-6 Months
Name an example of a P2P Payment App
Venmo, Zelle, Paypal, etc.
Give an example of why someone would use a P2P payment app
To pay a friend back for lunch if you don't have cash
The extra money a bank pays you for keeping funds in a savings account is called this.
What is Interest?
To avoid a monthly maintenance fee, many banks require you to either set up direct deposit or maintain this.
What is a minimum balance?
This saving strategy means setting aside money for savings before spending on wants or needs.
What is "Pay Yourself First"?
Jenny uses online bill pay to send her car payment. What happens to her balance?
It decreases
Name one reasons why it is important to check your bank statements regularly.
To check for fraud or errors
To budget
Name 1 reason to open a checking account
It’s a way to keep your money safe
You have more options for paying
Dealing with checks is easier
Paying bills is a breeze
There is a paper trail
There are no transaction limits
They make it easy to manage your money
They offer more features than digital wallets
You can get cash from an ATM
Member-specific benefits
What can you do to avoid out-of-network ATM fees?
Go to your bank's ATM
Withdraw extra cash when you are at the bank
Fill in the blanks: In the 50-30-20 rule, 50% goes to _______, 30% goes to _______, and 20% goes to _______.
Needs, Wants, Savings
Google Pay and Apple Pay are examples of this tool that lets you store card information and make contactless payments with your phone.
What is a digital wallet?
How does time affect compound interest?
The longer the money stays invested, the more you earn
Name 1 way to put money INTO a checking account and 1 way to take money OUT of a checking account
Ways to Put Money INTO Your Checking Account: Make a cash deposit at your bank, Deposit a check at your bank, Use an ATM to deposit your money, Make a mobile deposit, Use direct deposit, Transfer money from another account
Ways to Take Money OUT of Your Checking Account: ATM withdrawal using a debit card , Visit a bank teller to make a withdrawal, Make a purchase using a debit card, Write a check, Use online bill pay, Transfer money to another account
Billy gets alerts of ATM withdrawals she didn’t make. What should she do?
Contact his bank immediately, as her account may have been hacked
When a family has no savings and their income just barely covers their expenses each month, they are said to be doing this.
What is living "paycheck to paycheck"?
Digital wallets are often safer than carrying cash because....
You need a passcode or fingerprint/face identity to access
How does a checking account provide a “paper trail”?
By keeping detailed records of deposits, withdrawals, and payments
Diego moves $200 from checking into savings each month. Why?
Because money in a savings account can earn interest and grow over tim
When signing up for overdraft protection and you spend more than your balance, what happens?
The bank covers the transaction but charges an overdraft fee
The best time to start putting money into a savings account is this
As soon as you start earning money
Name an advantage of online banking?
Easier bill payments
24/7 account access
Simpler fund transfers
Better access to bank records
Improved visibility of account balances and transactions
Ability to sync your accounts with your apps
Use of mobile apps
Name one short-term goal you might save for in the next few months and one long-term goal you might save for over several years.
Short-Term: Buying a new video game
Long-Term: Saving for college