Financial Literacy Topic 2 Review

Checking and Savings

100

A(n)  ___________________________shows all the transactions in your account and is typically sent to you once a month.

 bank statement

200

Your savings grow by earning  ___________________________, which is paid out as a percentage of your savings balance.

interest

300

A(n) ___________________________  is linked directly to your checking account and can be used to withdraw money or make purchases.

debit card

400

True or false: A savings account is easy access money you can spend everyday

false

500

DEPOSIT $ INTO ACCOUNT...

WITHDRAW $ FROM ACCOUNT...

Deposit

• Deposit a check at a bank
• Deposit a check using mobile deposit
• Deposit cash at an ATM
• Use direct deposit for your paycheck

Withdraw

• Withdraw money from an ATM
• Make a purchase with a debit card
• Use online bill pay
• Write a check
• Transfer money to another account

Beware of Banking Fees

100

To avoid a(n) ___________________________, ensure you have enough funds in your account to cover all transactions.

overdraft fee

200

True or false: You can avoid banking fees

True

300

Some financial institutions require you to maintain a(n) ___________________________ in your account to avoid being charged fees.

minimum balance

400

17. Naomi sets up a new checking account. She answers “no” to opt out of overdraft protection. One day, she starts with $45 in her account. She uses her debit card to pay for a $20 cab and to buy a $15 movie ticket. Then, she swipes her debit card to buy $12 at the movie concession stand.

1. Does the final transaction go through? 
2. Is Naomi charged a fee? 

No/ No

500

3 Strategies to avoid bank fees

• Set up alerts
• Use in-network ATMs
• Avoid maintenance fees by finding accounts that don’t have or will waive the maintenance fees
• Maintain the minimum account balance required

Situations

100

True or false:
You only have to pay the minimum on a credit card to avoid incurring interest.

FALSE 

200

Natalie has 200 in her account, she spent 17 at the beauty salon, she then gets sent 156 from her boyfriend, her Netflix automatically charger her account at $37. Whats her final account balance? 

302

300

True or false, theres not fee pulling money from a savings account?

FALSE... sometimes true but mostly false

400

Abby has $437.22 in her account that has 6.00% APY. How much will she have in her account after 1 years of not touching it.

$463.45

500

You receive an overdraft fee of $35. You have tried 4 different stores, swiping your card 4 times. Decline, decline, decline, decline. How much in fees are you going to pay?

$140

Challenges To Save

100

What percentage of your income should you try to save?

20%

200

How much should you try to save in an emergency fund?

3-6 months of expenses

300

Fill in the blank: Many Americans  _______________  (do / do not) have $400 to cover an emergency expense and _______________  (do / do not) live paycheck to paycheck.

do not/ do

400

Cons of P2P 

• Security Risks: Although these systems encrypt your financial information, some have been hacked or used by scammers.
• Limited Recourse: Once you've authorized a payment, it may be challenging to get your money back.
• Fees: Some providers charge fees for certain types of transactions, like if you use a credit or debit card.

500

What are 3 challenges that can make it difficult for people to save money?

• Increased spending when using credit cards or digital payment
• Living paycheck to paycheck
• Having expenses that are higher than your income
• Price increases due to inflation

Online and Mobile Banking

100

To avoid frequent trips to the bank, many people use a(n)  ___________________________ to withdraw cash or check their account  ___________________________.

ATM and Balance

200

Many employers offer  ___________________________, which electronically transfers your paycheck directly into your bank account.

direct deposit

300

P2P stands for?

Peer to Peer or Person to Person

400

Zelle, cashapp, venmo is an example of 

... online banking P2Ps

500

Pros of P2P Apps

• Quick Transactions: P2P payments allow for instantaneous transfers, eliminating the wait time often associated with checks.
• Convenience: All that’s needed to send a payment is the recipient’s email address or phone number, simplifying the process.
• Privacy: Users can send money without exposing their bank account details.
• Generally Free: Most of these services are free when linked to a bank account.