Vocabulary
Adding or putting into an account
What is a deposit?
What card is attached to your checking account.
What is a debit card?
A plan to save and spend money
What is a budget?
This happens when you write checks for more money than is in your account?
What is an overdraft?
You want to purchase a new vehicle and you have your heart set on a brand new SUV. You take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees. Does your credit score go up or down?
Down
Taking money out of an account
What is a withdrawal?
Who should know your ATM Pin ?
What is only you should know your pin?
What is a checking account ?
What is money kept for everyday expenses?
True or False
You should always spend more than you have.
False
Sarah has a bank account that charges $2 for non-bank ATM withdrawals. Last month, Sarah paid $12 in ATM fees. How many non-bank ATM withdrawals did she make?
6 withdrawals
A request for your bank to pay another party from funds in your account.
What is a check?
A report containing detailed information on a person's credit history ?
What is a credit report?
A record of the money an individual holds in an interest bearing deposit account at a bank.
What is a savings account?
True or False
Interest is always a good thing
False
Mark has $54.78 in his checking account and needs to buy new basketball shoes before the game. The shoes will cost $80. Which card could he use?
A credit card because the cost of the purchase is more than he has in his account
Money paid by citizens to support the government.
What are taxes?
This is the best way to protect your credit rating.
What is pay your bills on time?
Savings accounts limit the number of certain types of transactions the account holder can perform each month.
What makes a savings account different from a checking account?
How old do you need to be to open an account of your own?
What is 18 years old ?
Myra has had her job for 3 months and earns $2000 per month. She has had 5 late payments on her credit card. What could her credit score be?
A. 800
B. 700
C. 600
C. 600
A number based on information in a consumer's credit report that measures a consumer's credit worthiness?
What is a credit score?
Name the three types of information that are found on a credit report.
What is Employment Information, Personal Information, and Credit History
True or False
Saving accounts accumulate interest.
True
$250,000 is protected by who under deposit insurance.
Who is the FDIC?
Blake just graduated college and accepted a new job as a graphic designer for a marketing firm. He wants to buy a $100,000 condo near his new job and he has saved enough money for a 20% down payment. He is planning on taking out a loan, or a mortgage, for $80,000 to purchase the property. Is this good or bad debt?
Good. Blake has steady employment and a solid down payment, making the condo purchase a good investment for him. The home loan will give Blake the opportunity to continue building his credit history and “creditworthiness.”