Financial Literacy: Lesson 5 Checking and Savings

Which of the following is NOT a key term discussed in the introduction?

• Loan

• Balance

• Checking account

• Credit card

What is a checking account primarily used for?

• Long-term savings

• Day-to-day purchases

• Investing in stocks

• Paying off loans

Which method allows you to access cash directly from your checking account?

• Using a debit card at an ATM

• Writing a check

• Direct deposit

• Using a credit card

What happens when you use a debit card for a purchase?

• You receive a bill at the end of the month

• The amount is added to your savings

• You pay the amount over time with interest

• The amount is deducted from your account immediately

What is the purpose of a savings account?

• To pay off credit card debt

• To invest in the stock market

• To pay for daily expenses

• To store money for long-term use

How often can you typically make transactions from a savings account without incurring a fee?

• A limited number of transactions

• No transactions allowed

• Only on weekends

• Unlimited transactions

What does a savings account pay you on your average balance?

• Interest

• Rewards points

• Dividends

• Cashback

If Frankie Finance had $100 in her savings account and earned 1.5% interest, how much did she earn in a year?

• $2.50

• $2.00

• $1.50

• $1.00

What is one benefit of linking your checking and savings accounts?

• Unlimited withdrawals

• Higher interest rates

• Easier money transfers between accounts

• No transaction fees

Why is understanding both checking and savings accounts important?

• To become more financially literate

• To avoid paying taxes

• To get a higher credit score

• To qualify for loans