Vocab Vocab Vocab
To avoid trips to the bank, many people use a _______ to withdraw cash, check their bank account, and deposit cash
ATM
When you take money out of an account, it is called a __________.
Withdrawal
What is a benefit that Savings accounts have that checking accounts don't?
They increase your savings because of interest
What is one reason that someone might be unbanked?
They have no address, they have no identification, they are unemployed
A __________________ shows all the transactions in your account that you made once a month.
Account Statement
When you input money into an account, it is called a __________
Deposit
What is a difference between a traditional savings account compared to a High Yield Savings Account?
Different fees for managing the account, a higher interest rate
What are some disadvantages of being unbanked?
Your savings grow by earning _________, which is part of a percentage of your savings balance
Interest
What is an advantage that a checking account has that a savings account does not have?
Easy access to money, no withdrawal fees
How does a low interest rate impact your saving?
A low interest rate will result in slowly growing savings.
3 - 6 months of expenses
A ___________ is linked directly to your checking account and allows you to withdraw money, and spend money on purchases
Debit Card
What is one way to deposit money into your account?
Bank teller, ATM, Phone App, Cashapp
How can you avoid withdrawal fees when using your savings account?
Limit withdrawals as much as possible
Inflation means that prices tend to __________ over time. Meaning that your money loses value over time.
Increase
To avoid a _____________ be sure to have enough money in your account to cover all of your transactions
Overdraft Fee
Why is it important to review your expenses frequently?
To avoid overdraft fees, to ensure you are staying under budget etc.
What is the difference between compound interest and simple interest?
Compound interest compounds your savings with your interest, while simple interest only increases based on your principle amount
Give an example of a digital wallet.
ApplePay , CashApp, Venmo