Payments + Bills
You are at the checkout counter at the local supermarket, use your debit card to pay for your groceries, and select “credit” when the cashier asks “Debit or credit?” Where does the money for this purchase come from?
It is deducted directly from your checking account
Becky gets a text alert from the bank that her account has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Contact her bank immediately as it appears that her account may have been hacked
What are some best-practices when writing a check?
Recording all of your transactions in a check register
When signing up for a new checking account you answer "Yes" to receive overdraft protection. On this day, you have $7 in your account. You go out and use your debit card to buy lunch for $23, a movie ticket for $17 and dinner for $35. What is likely to be the outcome resulting from these transactions?
You will likely be charged an overdraft fee for EACH transaction and also will need to repay the bank for the amount overdrawn ($29)
How are credit unions and banks different?
Banks are owned by shareholders, while credit unions are owned by members
A person-to-person payment would best be used in which of these situations?
To repay your cousin who covered the cost of your lunch last weekend
True or False?
Swiping a prepaid card to pay for your fast food purchase is a way to access money in your checking account.
False
True or False:
A check that you mailed this morning to your nephew for his graduation will appear in your account balance when you check your balances online later tonight.
False
You visit a local bank that is FDIC-insured to open a checking account. Assume that you can only ask the bank representative one question before you open your account. What would it be?
What is your schedule of fees for this account?
Why is it so important to have a checking account?
A checking account facilitates the rest of your financial life by making your money available when and where you need it while also keeping it safe.
Using a digital wallet payment such as Apple Pay or Samsung Pay is considered safe because...
You do not need to hand your card to the cashier, so your personal information and account number remain private
What are some convenient features of using online and mobile banking?
Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch
How can you describe the difference between a checking statement and a checking agreement?
A statement shows you all of the deposits and withdrawals from your account, and an agreement shows you the terms of the account, such as fee structure and minimum requirements
When signing up for a new checking account you answer "No" to receive overdraft protection. On this day, you have $7 in your account. You go out and use your debit card to buy lunch for $23, a movie ticket for $17 and dinner for $35. What is likely to be the outcome resulting from these transactions?
Because you turned down overdraft protection, the bank will not allow you to overdraw your account so your card will be denied in these 3 instances
True or False:
Check cashing businesses allow customers to get access to their cash quickly with a fee attached.
True
Which of the following transactions will REDUCE your checking account balance immediately?
Using your debit card to pay for groceries at the supermarket
The largest source of fees for banks when it comes to checking accounts are...
What are good habits to protect your checking account information?
Create complex passwords that are a long combination of letters, numbers, and symbols
While opening your checking account, the bank representative seems very interested in getting you to sign up for overdraft protection. What might explain his motivation?
Banks generate income by charging fees such as overdraft
George has a checking account at a credit union, but he loads cash onto and uses prepaid cards sometimes, too. What might be his reason?
He feels the prepaid card prevents him from overspending because he loads on a fixed dollar amount and there is no option to overdraw.
Your friend Melissa just got a part-time job so she can afford to attend a school trip abroad later this school year. Melissa gets a paycheck on the 1st of every month, and a cash payment is due to the International Club advisor by the 3rd of every month with no exceptions. More than one late payment results in being removed from the trip. What recommendation do you have for Melissa?
Sign up for direct deposit with her employer so that the money is already in her account the morning of the 1st
How does a low-balance mobile alert on your checking account work?
It will alert you when your balance falls below a certain amount, and you will know to stop spending until you can add additional funds
You find three receipts from your activities today: (1) ATM withdrawal of $120 plus a $5 out-of-network ATM fee, (2) Debit card used for grocery bill of $64 plus cash back of $40, and (3) ATM deposit of $190 from birthday checks. What is your current balance if you started the day with $500 in your account?
$461
Pamela is moving from her childhood home in Reno, NV to an apartment with her best friend in Boston. She plans to stay 6-9 months to test whether she likes living on the East Coast, and then she may move again. Which of these is the BEST option for Pamela when opening a checking account?
Open an account at a large national bank with a lot of branch locations
Alex lives in a large apartment complex, and his rent is due by the first of each month to “Richardson Rental Properties and Housing Options, LLC” which has its office 45-minutes away in downtown Houston. Which payment option makes the most sense if Alex is trying to be responsible and efficient with his time?
Use online auto bill pay.