Savings and Investment Strategies Part 1

Putting money into the bank is called a...

• deposit

• loan

• interest

• withdrawal

Taking money out of a checking account is called a...

• deposit

• loan

• interest

• withdrawal

Thinking of savings vs. checking accounts, which statement is true?

• Savings accounts earn interest while checking accounts do not.

• Savings accounts let you write checks to pay bills easily while checking accounts do not.

• You can only use online banking with savings accounts and in person banking with checking accounts.

Which action will increase the money in your checking account?

• Deposit a check from your uncle for your birthday gift.

• Use the ATM to get out cash.

• Move money from your checking account to your savings account.

To automatically save a specified amount from a paycheck for future use.

• Opportunity cost

• Principal

• Pay Yourself First (PYF)

• Savings account

What does the "FDIC Insured" mean?

• If you lose your wallet and the cash inside is missing, your bank will pay to replace it up to a certain amount

• If you have money in your checking or savings account and the bank goes out of business, you are guaranteed to get your money back up to a certain limit

• Bank customers can buy car or health insurance at their bank

Savings goals that you want to achieve in 2 years are called...

• short-term savings goals

• medium-term savings goals

• long-term savings goals

compound interest

• interest on the original deposit

• interest on the original deposit PLUS interest on the interest

• fees charged by your bank for not having the minimum balance in your account