The Banking System
What is a Pin #?
A Pin#is a personal identification number that gives access to an account.
What is the Grace Period ? How long is it ?
The Grace Period is the amount of time you have to pay off the balance of the bill. This is usally 28-30 days.
True or False:
A Budget is set in stone. Once made, it can never be changed or revised.
False. A budget is a plan. it will be changed and revised as your spending , saving and income earned changes.
When you go food shopping, how do you find an item that you need in a store ?
Ask a store worker for help/ look for hanging aisle signs.
What is currency? Give an example please
A system of money generally used in a particular country.
Examples: Peso, Yen, Lira,b Euro
What is the difference between a debit card and an ATM card?
A debit card allows the account holders to withdraw cash at an ATM and make purchases by swiping the card through a POS terminal at a store's checkout counter. The ATM card can only be used at an ATM.
Your credit card statement has arrived in the mail. your balance is $516.79.
Do you have to pay the entire balance when the bill comes in? Why or Why not?
You can pay the entire bill or you can pay the minimum payment.
However, If you just pay the minimum balance you will pay interest on the remaining balance until it is completely paid off.
What is included in a monthly budget?
A budget includes a listing of income from all sources, planned savings, and all expenses
Where can you find the expiration date?
On the Label.
What is a intrest rate?
The proportion of a loan is charged as a intrest to the borower typically expressed as an anual percentage of the loan outstanding.
What is the purpose of a check register? What types of data shoudl be in the register?
The purpose of the register is to track checking account transactions. It should contain data about deposits, checks, other withdrawals and fee.
What does APR mean?
Annual Percentage Rate
Name an occassion or situation where a budget is needed. (you need to know how much money you can spend, etc)
Examples:
Christmas Shopping, Food Shopping, a Wedding, College tuition.
What is Impulse buying? Give an example of something that you can buy on impulse at the supermarket check out line
Buying on a whim just because you see it.
Candy, gum , soda, magazine.
What is medicare?
Medicare, the us federal government health insurance program for old people.
What is the purpose of a signature card?
A signature card provides an official signature that the bank can compare to the signature on checks.
The Credit Score is a report that details your financial life. What financial habit makes up 30% of your credit score?
Your Payment History makes up 30% of your credit score.
How are fixed expenses different from variable expenses?
Fixed expenses do not change each month, whereas variable expenses vary each month.
Give 3 examples of taxable items in a supermarket.
Candy, magazine, soda, prepared meals, cosmetics, greeting cards
What is Consumer protection?
To protect your consumers rights from fraud and theif
What should you do if you make an error writing a check?
On the check with the error, write VOID in large letters. In the check register, write VOID over the entry in the description of transaction collumn.
The 3 C' of Credit are:
Character, Capacity and Collateral
What do each of these terms mean in the eyes of the lender approving you for a loan. Explain how these terms relate to you as a borrower
Character- Who are you financially. What is your history in paying bills.
Capapcity- How will you pay us back - Do you have a job? Are you capable of paying me back?
Collateral- What do you have that the lender can take from you if you don't pay me back?
How can you use a spreadsheet to help with budgeting?
A spreadsheet allows you to set up a budget plan with formulas so that as you enter number/adjust ammounts, the formulas perform all calculations for you.
Now that you have completed our class project, Give an estimate of the price for the following items (you must me be close to the price for all products to get the question right)
Carton of eggs, Gallon of Milk, Loaf of Bread and a Package of Oreos.
Eggs- $1.95- $2.50
Milk- $3-$3.50
Loaf of Bread- $1.99-$3
Package of Oreos $3.00-$3.50
What is Merchantable?
Goods which have a reasonablenappearance no defects and are safe.