Banking Basics
What is a withdrawal?
Something required to live safely and healthily.
What kind of fund covers unexpected needs?
Emergency Fund
Lauren pays for her book at the bookstore. She uses a card that can only be used at a specific store. What kind of card is this?
A gift card
A document that orders a financial institution to pay a specific amount from the issuer's account to the person or organization named.
A check
What is a deposit?
Something nice, but not a neccesity.
What's the difference between a fixed and variable expense?
A fixed expense is an expense that consistently happens. A variable expense changes.
What is an impulse purchase and what is a money leak?
An impulse purchase is buying something without planning and a money leak is small spending that adds up over time.
Give one example of a positive consequence of saving money and one negative consequence of spending without planning.
Positive: Less stress / emergency coverage
Negative: Running out of money / debt / missed needs
What is a debit card?
A card issued by the bank that allows the holder to transfer money electronically to another account when making a purchase.
What is a trade-off?
Giving up one thing to get another
Name atleast 3 Banking institutions
Fixed stays the same, variable changes
What does spending trap and delayed gratification mean?
A habit that causes money to disappear quickly and waiting now to benefit later
If you make $500 each week, you are paid twice a month and your fixed expenses is 1300, how much do you have for personal money and savings?
400$
What is a loan?
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
Name 2 ways to improve your financial literacy
Start budgeting, read about finances, take a personal finance class, set financial goals
Spend, Save, Invest, Donate
Name 4 ways to avoid impulse spending
Waiting 24 hours, Checking your bank balance, Planning needs first, and ?
Define the Terms:
1) Money that we receive in exchange for work or investments.
2) Things that one spends money on.
3) An estimate or plan to manage income and expenses over a set period.
1) Income
2) Expenses
3) Budget
What is interest and when can it help or hurt you?
Extra money earned on savings or paid when borrowing
What are 4 benefits of financial literacy?
Less debt, higher net worth, less financial struggle, improved household finances
What are the two objective/goals or spending ways related to money?
An objective that a person sets affects how they save and spend money. Objectives can be short-term (e.g., buying a computer) or long-term (e.g., saving up for college/university).
What do you need to consider when making a budget? (hint - there are 3 points)
1) How much we earn each week or month (income)
2) What are our expenses are
3) What we need and what we want
Name 4 different forms of taxes collected in Ohio. (hint - there are at least 4 different types).
1) Federal tax
2) Sales tax
3) SSI/Medicare
4) Property Tax
5) State Tax