Definitions
What is debt?
Money you owe
What is a fully funded (adult) emergency fund?
3-6 months living expenses
What is it called when your job puts money into your bank account without writing you a paper check?
Direct deposit
Which bank account(s) has unlimited deposits?
Checking, savings, HYSA
(not CD)
What is interest?
Money added to a savings account
OR
A fee charged when you borrow money
What is a starter/baby emergency fund? Why should you start with this?
Give 2 reasons for checking your bank accounts regularly.
Being aware of your spending and balance. Detecting fraud. Meeting your savings goals.
What is FDIC insurance AND what is its $ amount?
Coverage for your bank account if a bank fails. $250,000
What is inflation?
The value of money decreases over time. This leads to goods and services becoming more expensive.
Explain "pay yourself first"
Put money into savings before considering your needs and wants
Name 3 banking fees.
Nonsufficient funds fee, overdraft fee, foreign transaction fee, monthly maintenance fee, check fee, etc.
Which bank account(s) have the highest interest?
HYSA (and CD)
Define liquidity.
How easy it is to convert an asset to cash.
Personal finance is ___% ________ and ___% ________.
80% behavior, 20% knowledge
Best time to start saving?
Now! Right away! Today!
Which bank account(s) has a maturity date AND what is a maturity date?
CD. You cannot withdraw money before this date (without penalty).
Agree / Disagree - Use an emergency fund to grow wealth. Explain why.
Disagree - Your e-fund needs to be accessible (high liquidity) and guaranteed (no risk). The best wealth-building methods include risk and often are not very liquid (for example, a retirement account or stocks).
Write down 4 ways of avoiding a monthly bank account fee.
Maintain a minimum daily balance
Use a student account which links to a parent/guardian’s account
Meet an age requirement
Meet a direct deposit minimum requirement, example $500 per month
Be a veteran or serve in the armed forces
Have a mortgage or loan through the bank
Use a debit card to make purchases a certain number of times every month