Banking & Finance Vocab Test

What is a budget?

• A way to over spend money

• Listing out your expenses and your income and understanding how much you can spend

• A way of controlling your money so that you pay your taxes on time

• Being rich

What does "Paying myself first" mean?

• Automatically putting money away for your savings goals

• Automatically putting money away for your spending goals

• Automatically putting money away for your life goals

• Automatically putting money away for your mom's goals

How long is a short term savings goal?

• Anywhere in between 2 months to 3 years

• Anything longer than 3 years

• Anything less than 2 months

• Anything more than 2 months

How long is a Medium-term savings goal?

• Anywhere in between 2 months to 3 years

• Anything longer than 3 years

• Anything less than 2 months

• Anything more than 2 months

How long is a Long-Term savings goal?

• Anywhere in between 2 months to 3 years

• Anything longer than 3 years

• Anything less than 2 months

• Anything more than 2 months

What does it mean to be unbanked?

• It means that you having savings/checking account but you do not use it

• It means you make too much money to have a bank account

• It means you do not make enough money to have a bank account

• It means you chose to not have a checking/savings account

What does it mean to be underbanked?

• It means that you have a savings/checking account but you do not use it

• It means you make too much money to have a bank account

• It means you do not make enough money to have a bank account

• It means you chose to not have a checking/savings account

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

• The main difference is that a debit card is with the bank's money and the credit card is your money

• There is no real difference between a debit card and credit card

• The main difference is that a debit card is with your money and the credit card is with the bank's money

• A debit card has an interest rate and a credit card does not have an interest rate

If your goal was to save 35,600$ in 4 years. How much would you need to save per month to reach that goal?

• $8,900

• $890

• $2,966

• $741

What is a need?

• Things that you need to survive as an individual

• Things that you would like to have

• Things that you need to have to go on a vacation

• Things that you need in order be cooler than Mr. Reyes