Banking

A savings account earns interest and a checking account does not

There is no difference between the two

A checking account earns interest while a savings account does not

A chucking account is used for emergencies only and a savings account is for every day spending

Emergencies only

Long-term savings and expensive purchases

Every day spending

All of the above

An account you create only after an emergency happens

Long term savings for big purchases

Everyday spending

A separate account for emergencies only so that your checking and savings stay in tact when an emergency happens

1 year of expenses

3-6 months of expenses

6-8 months of expenses

2-3 months of expenses

$100,000

$200,000

$250,000

$500,000

a new house

a new cell phone

a car

retirement

your credit card company covers the cost

1. It is deducted directly from your checking account

1. Your credit card company provides you with a cash advance to cover the cost

1. It is deducted directly from your savings account

1. Your account will be closed

Your bank will give you 24 hours to add more funds to the account

1. You will likely be charged an overdraft fee for one or more of the transactions and

Your bank will provide the funds for your account, and you will have to pay them back at a later date