BANKING BASICS
Known as a transactional account, it is an account for your day to day banking needs.
What is a checking account?
The first thing you should do when you receive money.
What is Pay yourself!
This helps you reach your short and long term financial goals through helping you keep track of your spending and money you receive.
What is a budget?
A feature of a savings account that is not typical of a checking account.
What is "it pays interest"? or What is interest?
Something that you cannot live without.
What is a need?
The type of card that allows you to access the funds in your checking account to make purchases and has either a Master Card or VISA logo on it.
What is a debit card?
What is the Fear of Missing Out?
This helps you prepare for unexpected expenses.
What is an emergency fund?
A hybrid account between a checking and savings account.
What is a Money Market account?
This is a ledger that you record all of the transactions you make for your account.
What is a check register? or What is a register?
When you don't have enough money in your checking account to cover a purchase, the bank will charge you one of these. (be specific)
What is an overdraft or non-sufficient funds fee?
An error in the way we think that can influence our decisions.
What is a cognitive bias?
When considering a budget, a vacation is considered one of these.
What is a want?
A type of account that requires a deposit to stay in the account for a specific amount of time and in return the bank will pay a specified interest rate for the entire time.
What is a Certificate of Deposit? or What is a CD?
When the bank chooses to pay for a transaction even if you do not have enough money to cover it.
What is overdraft protection? or What is ODP?
For checking accounts, the bank will send one of these in the mail to you each month. For savings accounts, it is every quarter.
What is a statement?
More than 60%
What is the percentage of people who make financial decisions based on FOMO?
In life there are certain items that are a necessity, like food and shelter. These are considered to be ...
What is a need?
Interest made from interest
What is compound interest? or What is compounding?
Anything you own that adds financial value.
What is an asset?
Known as the bank of the banks.
What is the Federal Reserve Bank?
Someone would be unable to pay their bills if they were to lose their job or not receive their next paycheck.
What is living paycheck to paycheck?
A good rule to follow when creating a budget would be
Pay yourself first, change it as your needs change, change it as your financial situation changes, etc
Typically $250,000 per account holder
What is FDIC insurance?
A debt or obligation that a person owes another party.
What is a liability?