budgeting
what is a budget?
A plan that helps you manage your money using the knowledge of your monthly income and expenses?
Where do credit cards get the money for their purchases?
The bank
Where does the money for debit cards come from.
Your checking or savings account
What does it mean to buy a stock?
To own a small percentage (or equity) of a company
What type of account has a low interest rate, less transactions than a checking account, and is usually used for storing money?
Savings account
What is considered the most fundamental and effective way to save money? (hint:column)
Budgeting
True or False: Merchants are prohibited by federal law from charging extra for using a credit card.
False, there is no law against it, but card networks have rules against it.
(1000 points if you can say the exact number though) Roughly, what percent of America own a debit card?
Over 90% (94%) About 6% of adults are unbanked
True or false: Stock market investments are insured by the FDIC.
False
Which type of bank account sends money to your debit card?
Checking
What is the 50/30/30 rule?
50% for needs, 30% for wants, and 20% for savings
What was the first general-purpose credit card made of?
(Hint: cash)
Paper
(Double points if you could say both) What is a potential fee associated with using a debit card?
Overdraft fees (if you spend more than you have) or out-of-network ATM fees.
What does the stock ticker "Q" mean at the end of a symbol?
The company is going into bankruptcy
What type of bank account often has the HIGHEST YIELD in interest?
High-yield savings account
What does it mean to "pay yourself first"?
To put a set amount of money aside before spending it
True or False: Closing a credit card account always boosts your credit score.
False, it can actually hurt your score by reducing your available credit and shortening your credit history.
What does the "PIN" of your debit card stand for?
Personal Identification Number
What is an IPO?
Initial Public Offering—the first time a company sells stock to the public.
What account is specially designed for retirement savings with tax advantages?
Individual retirement accounts
What is the first step in making a budget?
Making a list of the monthly income and expenses
What is the maximum amount a cardholder is generally liable for if their credit card is stolen and used?
$50
Which security feature is the 3-4 digit code on the back of the card?
The CVV (Card Verification Value) or Card Security Code
What is a blue-chip stock?
A stock for a well-established, financially sound company
Which savings account locks your money for a term (typically 6 months to 5 years) for a higher, guaranteed interest rate?
Certificate of deposits