Banking & Credit

Banking is defined as

• storing the money you use in everyday life in your sock drawer.

• storing the money you use in everyday life on gift cards and cashapp.

• storing the money you use in everyday life in a bank or credit union.

Banks are businesses that are PRIMARILY run for

• Profit (To make money)

• financial service (To help people with their money)

• better money management

Credit Unions are...

• profitable business ran by and for their members. (THey make money off of their customers)

• nonprofits ran by and for their members. (They don't make money off of their customers)

• nonprofits ran by union officials and trustees.

Should you hide your money at home?

• Yes

• No

What if your bank gets robbed? Do you lose you money?

• Yes. Sucks to be you.

• No. It is insured by the government and you get it back.

What are some benefits to banking?

• Your money is safe

• You earn interest on money in your CHECKING ACCOUNT (The bank pays you!)

• You earn interest on money in your SAVINGS ACCOUNT (THe bank pays you)

• DEBIT cards let you pay for things wherever you are

• ATM cards let you pay for things wherever you are

A checking account is...

• the account you use to pay your day to day expenses. It may have a debit card or app you can use to access your money.

• the account you use to save your money to pay for large expenses. It may be more difficult to access your money to keep you from spending it and help you keep saving it.

A Savings Account is

• the account you use to pay your day to day expenses. It may have a debit card or app you can use to access your money.

• the account you use to save your money to pay for large expenses. It may be more difficult to access your money to keep you from spending it and help you keep saving it.

What happens if you overdraw your checking account?

• the bank will warn you to put more money in.

• the money is not there so your purchase may be declined.

• you will get charger big penalty fees by YOUR bank

• It can make your "Credit Score" go down

Some of the DISadvantages of using Credit and credit cards

• Spending money you don’t have

• paying more than you would if you paid cash or used debit card

• You buy things you can't afford

• If you use the credit poorly, you can get a Poor Credit Score