Banking Basics

What is a financial institution?

• An institution that allows you to store your money

• An institution that steals money from its clients and members

• An institution that provides services for its clients and members

• An institution that provides financial services for its clients and members

Identify ONE similarity between a bank and credit union.

Identify ONE difference between a bank and credit union.

What are checking accounts used for?

• For saving money for unexpected expenses

• For day to day transactions, hold and withdraw money, pay bills etc.

• For day to day transactions, hold and withdraw money and to save money.

• For paying bills only.

What are savings accounts used for?

• To earn interest

• For day to day transactions, withdraw and hold money, pay bills

• To save money for unexpected expenses or big purchases, while earning interest

• To save money for future health expenses

Identify ONE advantage for keeping your money in a bank or credit union.

True or False. If you keep your money in a bank or credit union, it is insured by either the FDIC or NCUA. Which means if something happened to the bank or credit union your money is safe.

• True

• False

True or False. All banks and credit unions offer the exact same services to customers or members.

• True

• False

Besides checking and savings accounts, identify ONE other service a bank or credit union may offer.

Do you currently have a checking and/or a savings account?

• Yes

• No