Checking
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
It is deducted directly from your checking account.
Which of these statements about savings is INCORRECT?
A. People often believe they are saving when they buy products at a listed discount, even if they didn't need the product in the first place.
B. It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit.
C. Without a separate savings account to pay yourself first, it's more likely that you'll spend all of your income each month.
D. Billions of dollars are spent on marketing to persuade consumers to spend money instead of saving it.
B. It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit.
Which TWO of the following statements are advantages of online banking?
A) Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
B) With online banking, you can view your daily transactions and balances, rather than waiting for your monthly statement
C) Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
D) You can shop online only if your bank account has online banking features
B and C
The largest source of fees for banks when it comes to checking accounts is...
Overdraft Fees
Which of the following is NOT a good habit to protect your checking account information?
A. Carry the PIN number for your debit card with you in your purse or wallet.
B. Shred documents that have your account number on it.
C. Check your ATM and debit card transactions on a frequent basis.
D. Use only secure websites when entering in your account information online.
A. Carry the PIN number for your debit card with you in your purse or wallet.
Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Contact your bank immediately as it appears that your account may have been hacked.
Why is Compound interest better then Common interest?
Compound interest is taken on the whole sum of money. Simple or common intrest is just taken on what money you have in the account.
Which of these is NOT a scenario in which a person-to-person payment could be used?
A. Tina pays her neighbor $200 for breaking his window with a softball.
B. Rafael writes the whole monthly rent check to the landlord, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent.
C. Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee
D. Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group
D. Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group
When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
Since you turned down overdraft protection, the bank will not allow you to overdraw your account so your card will be denied in these 3 instances
You want to take earnings from your part-time job to pay for a new laptop. Your monthly take-home pay is $500 and the laptop costs $1,200. What percentage of your pay do you need to save in order to buy the laptop in 12 months?
A. 5%
B. 10%
C. 15%
D. 20%
D. 20%
When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
You will likely be charged an overdraft fee for EACH transaction and also will need to repay the bank for the amount overdrawn ($29) + interest.
Which of the following is an effective strategy for personal saving?
A. Wait until the end of the month and save whatever is left in your checking account.
B. Save a certain percentage of each paycheck and deposit it directly in a savings 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.
B. Save a certain percentage of each paycheck and deposit it directly in a savings account.
Interest will help your money grow? True - False
True
How do Check Cashing stores make money?
They make their money by charging fees for transactions that can be done for free by customers with a traditional checking account.
Which of the following is NOT a good reason to create an emergency fund?
A. Provides peace of mind.
B. Keeps you out of debt by giving you money to cover unexpected expenses.
C. Pays for big ticket items like a vacation or designer clothing.
D. Covers your expenses if you should lose your job.
C. Pays for big ticket items like a vacation or designer clothing.
Which of the following transactions may NOT be reflected when you go online to review your checking account balance?
A. ATM cash withdrawal from yesterday
B. Check that you mailed to your cousin for his birthday today
C. Automatic payment for your car loan paid two days ago
D. Debit card transaction from purchasing snacks at a local convenience store today
B. Check that you mailed to your cousin for his birthday today.
Which of the following statements about banks is FALSE?
A. If it is FDIC-insured, your money is safe even if the bank fails.
B. Many banks pay interest on the money you deposit with them.
C. Historically, savings accounts earn higher returns than investments in the stock market.
D. Money in a bank is usually easy to access via ATM, debit card or check.
C. Historically, savings accounts earn higher returns than investments in the stock market.
How often should you check your online accounts?
No, check weekly if not daily
Which of the following is a TRUE statement about check cashing stores?
A. Their checking accounts typically cost less than traditional bank accounts.
B. They tend to charge consumers a lot of hidden fees.
C. Customers use check cashing stores even though the employees are unfriendly and often make customers feel embarrassed or out-of-place.
D. They make their money by charging fees for transactions that can be done for free by customers with a traditional checking account.
D. They make their money by charging fees for transactions that can be done for free by customers with a traditional checking account.
Describe 50-20-30 budgeting/savings rule?
Needs, Savings, Wants
Which of the following is TRUE about checking accounts?
A. Interest rates are fixed as long as your account is open
B. Banks cannot change the fees on your account while it is open
C. Banks can change interest rates but not fees on your account while it is open
D. Both interest rates and fees are subject to change by the bank.
D Both interest rates and fees are subject to change by the bank.
Describe what a short term savings goal would be? Medium goal? Long term?
Answers may vary
Why is online banking beneficial?
Answers will vary.
In system Fees will always happen when you withdrawal money from a checking account? True - False?
False
How much should you try and save each month?
20% of what you make.