Take It to the Bank
This type of bank account is used for money that you will use on another day.
Savings Account
This card is directly linked to your bank account. When you use this card, the money comes out of your account.
Debit Card
If you borrow $1,000 to go on a vacation, you will actually end up paying back around $1,200. If you did this, you took out a ________.
Loan
These things are not necessarily debt but still have to be paid to companies for various services, items, etc. You will get these either in the mail or electronically.
Bills
It is a good idea to borrow money from Cash Express when you need money fast.
False
A lot of employers use this form of payment to pay their employees directly. In this method, employees do no get paper checks but rather, their paychecks go straight to their bank accounts.
Direct Deposit
When you use this card, you are essentially borrowing money from the card company. Therefore, you have to pay it back later.
Credit Card
Houses are expensive. A lot of times people do not have enough money to pay for a house with cash. Therefore, people will borrow money and then pay it back over 15 or 30 years. This loan to buy a house is called a ______________.
Mortgage
This is money spent on goods and services.
Expenses
Getting a credit card as a teenager is a good idea because it helps to build your credit score.
False
The money in this bank account is used for purchasing day to day items. In other words, money frequently goes in and out of this bank account.
Checking Account
This kind of card makes it easy to go into debt.
Credit Card
Your car breaks down and it's going to cost $300 to fix it. You do not have the money so you decide that a payday loan from Cash Express is a good idea. You get the money now and you have to pay them back as soon as you get your next paycheck. How much do you have to pay Cash Express back when you get your next paycheck? $300, $305, or $345?
$345
This is the money you earn.
Income
I can get a bank account even as a teenager.
True
Oh no! The bank is closed but you need cash for the ballgame tonight. How can you get cash from your bank even though it is closed?
ATM Machine
Let's say you owe $1,000 on a credit card. You do not have enough money to pay the full $1,000. Instead you pay $100. What is the term for what you now have to pay on the remaining $900 that you owe on the card?
Interest
You have a $10,000 credit limit on your Chase credit card. You buy a bunch of stuff and use the full $10,000. You decide to pay the minimum payment each month which is $200. How long will it take you to pay off the debt?
11 years or more
If you spend more money that you make, this is called _______________.
Living beyond your means
The term for owing money is called debt.
True
These are monthly summaries of all the money going in and out of your bank account. These things are essential for budgeting and checking for fraud.
Bank Statements
If you have $20 in your checking account but you use your debit card to pay for something that costs $25, what is going to happen to you? You will be ________.
Overdrawn
In the above example, how much are you going to pay in interest, on top of the $10,000 you put on the Chase credit card?
$16,000
If budgeting is hard for you, what can help you set up a budget?
Budgeting App
When I get a job and I put money in an account for retirement when I am older, that account is called a 502S.
False - 401K