Vocab
A financial institution where people or business can borrow, invest, or exchange money.
You have to be at least 18 years old to apply for a credit card.
True
What is a checking account?
Money kept for every day expenses.
List one of the factors people use when choosing a bank.
Location; convenience; rates; fees.
A plan for how to save and spend money.
Budget
Interest is always a good thing.
False
Why is it important to make a budget?
A budget helps plan your spending.
What is an overdraft fee?
An overdraft fee is what your bank charges you when you make a payment or purchase against your checking account that exceeds your available funds
The ability to borrow money or access goods or services with the understanding that you'll pay later.
Credit
The limit of withdrawals or transfers you can make from a savings account is 5 per month.
False
What is a credit score and why is it important?
A credit score predicts how likely you are to pay back a loan on time. It affects whether you get approved for credit cards, loans, mortgages, and auto loans, etc.
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: debit or credit?
Credit, the cost of the purchase is more than he has in his account.
Deposit
Getting your taxes done by a tax expert will usually cost you more money, but it will also get you a higher tax refund.
True
Why is it important to be careful when using credit cards? Explain your answer.
To avoid credit card debt, missing card payments, using too much of your card limit, and applying for too many cards at once.
List three things you can invest money in.
1) Stocks 2) Real estate 3) Bonds and Loans 4) Metals
A savings account that holds a fixed amount of money for a certain period of time and collects interest.
Certificate of Deposit
The best way to reduce your credit card debt is to pay the minimum payment required.
False.
What is a 401(k)?
A retirement savings and investing plan that employers offer.
Briana saves $20.00 each month to buy a computer. The computer costs $500.00. How many months will it take for her to save enough money?
25