Review: Checking and Savings

The following are reasons to open a checking account EXCEPT...

• Keeps your money safe.
• Gives you more options for paying bills.
• Makes a paper trail to track your money.
• You earn interest on your money.

True or False: You have a limit on how many times you can get money out of your savings account.

• True
• False

A popular savings strategy in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending,

• 50/30/20 Rule
• Pay Yourself First
• Emergency Fund

A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases.

• 50/30/20 Rule
• Pay Yourself First
• Emergency Fund

A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases.

• 50/30/20 Rule
• Pay Yourself First
• Emergency Fund

Money set aside for unanticipated expenses or loss of income

• 50/30/20 Rule
• Pay Yourself First
• Emergency Fund

You should have enough money in your Emergency Fund to cover how many months of expenses.

• 1-3 months
• 3-6 months
• 6-9 months
• 9-12 months

The FDIC protects the deposits of customers against loss up to $250,000 per account. What does FDIC stand for?

• Federal Deposit Income Corporation
• Federal Deposit Interest Corporation
• Federal Deposit Income Company
• Federal Deposit Insurance Corporation

The NCUA protects against credit union failure up to $250,000 per individual depositor. What does NCUA stand for?

• National Credit Union Administration
• National Credit Union Account
• National Credit Union Assessment
• National Credit Union Armory

The interest that you earn on interest is called...

• compound money
• compound interest
• compound savings
• simple interes