Bank Accounts
This type of bank account is where you could store money for day to day use
Checking account
What is the purpose of a budget?
To help you save for long term goals and manage your finances
When your paycheck is automatically sent to your account
Direct Deposit
That is the date that a bill must be paid each month?
The due date
What is the difference between a credit card and a debit card?
A debit card is taking money out of your account vs a credit card that is borrowing money from the companies accounts (you still have to pay it back!)
This account would be where you could store money for long term goals
Savings account
An amount of money set aside for unexpected situations
An emergency fund!
How many paychecks would you get per month if you worked a full time job
An average of 2 per month
What happens if you don't pay a bill on time
You get charged late fees (sometime each day you are late!)
What would be something you could take a loan out for?
A car, a house, going to school
What is the main difference between a checking and savings account
Savings accounts earn interest!
Things you can't live without
Essentials/ Needs
What percent of Americans live paycheck to paycheck
Around 60%
When a bill payment automatically comes out of our account
Autopay
What happens if you can't pay for the item you took a loan out for?
The bank will take it back (this is your collateral that you put up against the loan)
What type of documents are needed to open a bank account?
Government issued ID, your social security number, proof of address, and sometimes an initial deposit
How many months income is recommended you save for emergencies?
3-6 months
The amount you get paid BEFORE taxes and deductions
Gross income or gross pay
Name a common utility bill
electric, water, heat, wifi
DAILY DOUBLE
What is a credit score?
A summary of your credit history based on your financial behavior (your payments, number of loans, etc.)
DAILY DOUBLE!
What is a high yield savings account
A savings account that offers higher interest than a traditional one (typically around 3-5%)
What is the 50/30/20 rule in budgeting?
You should spend 50% of your income on needs, 30% on wants, and 20% on savings
The amount you get paid AFTER taxes and deductions
Net pay or net income
What is a security deposit when applying for an apartment?
Typically 1-2 months rent due when you sign the lease. This serves as insurance for the landlord.
Yes! Having credit helps show banks and lenders you are responsible. No credit means the banks don't know anything about you so they typically can't trust you with a loan