Banking Review

Why is it important to look at your checking account balance often?

• to make sure you are not overdrafting

• to know how much money you have in your account

• to make sure your bills are paid on time

• All are good reasons to check your balance often

Using the Rule of 72, if your savings account interest rate is 7.2%, how many years did it take your savings account to double?

• 5

• 10

• 7.2

• 7

What is the difference between a savings account and a checking account?

• Checking accounts are for long term goals, while Savings are for short term goals

• Savings accounts are for long term goals, while Checking accounts are for every day purchases

• Savings accounts have a debit card and checkbook, Checking accounts do not

• Savings accounts do not earn interest, checking accounts do

Which of the following would be considered a financial need?

• Housing

• Name brand clothes

• Dining Out

• Saving up for a wedding

Which of the following is considered a financial want?

• Housing

• Utilities (electric, water or phone bill)

• Name brand clothes

• Saving for Retirement

Which type of savings account allows you to pay some bills directly from the account (without having to transfer it into checking)?

• Traditional Savings

• Online Savings

• Certificate of Deposit

• Money Market Account

Which savings account has the highest interest rate?

• Traditional Savings

• Online Savings

• Certificate of Deposit

• Money Market

The Rule of 72 is used to 

• estimate how long it would take to double your account balance

• give you an idea of how much money you should save per month

• see if your account balance has dropped below a certain amount

• see what fees a bank will charge you

Which of the following transactions will REDUCE your checking account balance immediately?

• Writing your monthly rent check which you will mail tomorrow

• Using your debit card to pay for groceries at the supermarket

• Using your credit card to pay for your school books

• Depositing a check at a local bank branch

What does it mean to "Pay Yourself First"?

• deposit money into your savings account before you pay any bills or spend your money

• treat yourself

• put all of your money to bills

• know the difference between a want and a need