Credit Cards
True or False:
You are actually borrowing money from a credit card company when you purchase something using a credit card
True
Who distributes debit cards? Companies or the bank?
The bank
What is the word that means adding money to your checking or savings account?
Deposit
True or False: Savings accounts are known as "withdrawal accounts"
False: Savings accounts are known as "deposit accounts" because you should be putting more money in the account than you are taking out.
True or False.
Money in your checking account should be used for emergencies only.
False- checking account money should be used for everyday things, like bills or money to go out to dinner
A credit card company will send you a bill how many times per month?
Once per month or every 30 days
What have debit cards taken the place of?
Written Checks
What is it called when you take money out of your checking or savings account? Also known as any time you have an interaction with a bank.
Transaction
The number of ______________ (taking money out of the account) is limited with a savings account or you will be charged a fee.
Withdrawals
The money that you get out of the ATM comes from this account: Checking or savings?
Checking
What is an example of a credit card company/provider?
American Express, Discover, Mastercard, Visa
True or false: Banks will charge you a fee for having a low balance in your checking account if you have a debit card.
False- banks will only charge you a fee on savings accounts
What is it called when you take money out of your checking or savings account?
Withdrawal
True or False.
The primary purpose of a savings account is to spend money for everyday things like bills.
False- the purpose of a savings account is to save money
You can take money out of your checking account _________ many times per month
Unlimited- you can take money from your checking account as many times as you want every month
What is the money that you pay for every dollar that you spend? Usually represented by a percent. When you sign up for a credit card, this is the __________ rate that you will pay per month.
Interest
When you purchase something with your debit card, the money you spend does not come out of your account until the end of the week. True or False
False: the money comes out of your account immediately
When you have less money in your checking account than you actually spent. You are spending more than you have. What is that money known as? You will bounce a check when this happens
Insufficient funds, Non sufficient funds
What happens when you have a low balance (below the balance the bank requires) in your savings account?
The bank will charge you a fee
What happens when you spend more money than you have in your checking account?
You bounce a check/ your debit card will be declined
True or False: The most responsible way to pay off a credit card bill is to pay the most you can every month.
True
When you use your debit card, you are taking money out of which account? Savings or checking?
Checking Account
What is the amount of money that you have in your bank account?
Balance
True or False.
You should use a savings account for things that you WANT to buy, not things that you NEED.
False- you should use a savings account for things like new tires or medical bills. Similar to an emergency fund
True or False.
You should NOT record debit card purchases in your check register
False: Money you spend on your debit card comes from your checking account which should be recorded in your check register.