Show:
Lesson 1.1
Lesson 1.2
Scenarios
Lesson 1.3
Lesson 1.4/1.5
100

What does FDIC insurance stand for? Why is it important?

Federal Deposit Insurance Corporation.The FDIC insures up to $250,000 per account holder, insured bank and ownership category in the event of bank failure 

100

How much money should you keep in your checking and saving account?

Checking Account: One full paycheck

Saving Account: 6 months worth of expenses

100

A person-to person payment would best be used in which of these situations?

a. To give a donation to someone soliciting contributions outside the grocery store

b. To repay your uncle who covered the cost of your first semester textbooks

c. To buy some school supplies and baseball equipment while shopping online

d. To give a tip to the waitress at the diner

B. To repay your uncle

100

Why is it useful to balance and reconcile your checking account?

Even though errors are rare, keeping a good track of what’s going on with your finances will help you manage your money and be able to see fraud and fees.

100

How is using a digital wallet payment similar to using a debit card?

  • You need to enter a pin/password or fingerprint to authenticate purchases
  • If your debit card is used in your digital wallet, funds will come out immediately from your checking account
  • Electronic record of your payment is generated
200

What are some methods of depositing money into your checking account?

  • At a bank branch
  • Through an ATM
  • Direct deposit from your employer
  • Electronic transfer in from another account
  • Mobile app deposit
  • 3rd party app (ex: person-to-person payment)
200

Why is it important to know what fees are associated with your account? 

Overdraft fees are expensive and they accumulate over time, it's important to know how to avoid fees, and fees can harm those that don't make a lot of money.

200

Each of the following is a way to access money in your checking account EXCEPT...

a. Take out your cash using your debit card at an ATM machine

b. Use your debit card to pay for groceries at a Point-of-Sale terminal

c. Write a check to pay the rent on your apartment

d. Swipe a prepaid card to pay for your fast food purchase 

D. 

200

What is a check register and where do you get one?

A check register is a list (on paper or electronic) you create of all of your transactions and your current balance.

A register often comes with every order of checks, but they can also be electronic or homemade.

200

How did people pay for things in the 1920s?

Cash, Check, Money Order, Chicken/Vegetables/Jam (in rural areas), Department Store Credit Cards


300

What is the main difference between a debit card and a credit card?

Debit cards are cards that draw money from a checking account while credit cards are cards that make purchases with borrowed money, which you must then pay back after a certain amount of time has elapsed, probably with interest.

300

What is misleading about the term “overdraft protection”?

The term “overdraft protection” implies something beneficial. You think that overdraft protection will keep your money safe when in fact, you are actually opting-in to another costly bank fee.

300

1. Cam is moving from her childhood home in Scranton, PA to an apartment with her best friend in Los Angeles. She plans to stay 3-6 months to test whether she likes living on the West Coast, and then she may move again. Which of these is the BEST option for Cam when opening a checking account?

a. Sign up for whatever bank is offering the best promotion, such as a $50 bonus for new account holders

b. Open an account at a large national bank with a lot of branch locations

c. Join a local credit union in CA with no monthly fees and low overdraft fees

d. Keep the joint savings account she shares with her dad and just use that instead of opening a separate checking account

b. Open an account at a large national bank with a lot of branch locations

300

You receive a check for $50 from your Aunt Louise for your birthday. You go to an ATM to deposit the check into your checking account. How should you endorse the check?

a. Just sign your name on the front of the check

b. Sign your Aunt Louise's name on the back of the check

c. Sign your name and write "For Deposit Only" and your checking account number on the back of the check

d. Since the check is made out to you, you don't need to worry about signing the check

c. Sign your name and write "For Deposit Only" and your checking account number on the back of the check

300

List 5 advantages of online banking

  • Easier bill payments: You can send payments using your bank’s online banking platform to avoid having to write checks and pay for postage to mail them
  • 24/7 account access: Whether you’re on vacation or it’s the middle of the night, you can manage your banking. That includes holidays when your bank is closed.
  • Simpler fund transfers: It’s easy to move funds between your accounts, such as from checking to savings, using online banking.
  • Better access to bank records: Whether you need banking records for tax purposes or personal records, you can download statements and transaction records to print them at home
  • Improved visibility of account balances and transactions: You can easily check your balances and keep an eye out for unauthorized transactions
  • Ability to sync your accounts with your apps: Online banking allows you to transfer information from your accounts to Quicken, Microsoft Money, Microsoft Excel, and other applications
  • Use of mobile apps: Most banks allow you to use your mobile devices for online personal banking
400

What are some of the disadvantages of being locked out of, or choosing not to belong to, the traditional banking system?

  • You are charged fees when utilizing the services of a check casher
  • Fees are charged when using a prepaid card
  • Gas must be spent to cash checks and pay bills
  • You have to find a way to turn cash into money on a card in order to online shop
  • You have to spend time visiting check casher, paying bills in cash, etc rather than automating a lot of that with a checking account
400

Random Question:

On average how many people in the US are in debt?

Approximately 340 million people



400

1. Which of the following transactions may NOT be reflected on your account balance if you go online to check your balances?

a. ATM cash withdrawal from yesterday

b. Check that you mailed to your cousin for his birthday today

c. Automatic payment for your car loan paid two days ago

d. Debit card transaction from purchasing snacks at a local convenience store today

b. Check that you mailed to your cousin for his birthday today


400

List the steps for balancing your account.

  1. Add all your deposits to the beginning balance for an account’s statement period
  2. Subtract from the subtotal the checks you’ve written, ATM and debit card withdrawals, and bank fees
400

What is the main difference between a credit union and bank?

The main difference between the two is that banks are typically for-profit institutions while credit unions are not-for-profit and distribute their profits among their members.

500

What are Ms. Cady's favorite colors?

Purple, yellow, and orange 

500

What is the most popular bank in NJ?

Wells Fargo

500

1. You are a 18 year old college student. You're working a job and make $17 an hour. On average you work 30 hours per week. How much do you make weekly?

2. You go to the bank to deposit your check. You are charged a $80 overdraft fee. You pay your medical bill of $200. You receive a zelle payment of $100 from your mom. $195 is withdrawn from your account for T-Mobile and Apple. How much is left in your checking account?

You make $510 a week.

$135 is left in your bank account.

500

List the steps for reconciling your account.

  1. Compare each item from your check register to the items the bank has listed on your statement.
  2. Add all of the deposits the bank has not yet credited to the bank’s balance
  3. Subtract all the payments, withdrawals and bank fees the bank has not cleared yet
500

What should a good checking account offer for FREE?

  • ATM usage, checking
  • Online banking
  • Check writing
  • Bill pay
  • No monthly maintenance
  • No or low minimum balance