Chapter 8 Lesson 4 Responsible Banking

What is the most frequent and costly banking mistake mentioned in the text?

• Not using a budgeting app

• Overdrafting your account

• Forgetting your PIN

• Using a credit card instead of a debit card

According to the text, what is a sign of being responsible with your checking account?

• Checking your balance only at the ATM

• Using a budgeting app to track transactions

• Spending money on entertainment

• Ignoring monthly bank statements

What does the phrase "For where your treasure is, there your heart will be also" imply in the context of money management?

• People spend money on things they don't care about

• People save money for emergencies

• People spend money on things most meaningful to them

• People should not spend money at all

What is the purpose of reconciling or balancing your checking account?

• To ensure your records match the bank's records

• To avoid using digital banking options

• To increase your credit score

• To spend more money

What is an ACH payment also known as?

• Direct deposit

• Electronic funds transfer (EFT)

• Wire transfer

• Cash deposit

Which of the following is NOT a recommended method for tracking your checking account activity?

• Using a pencil-and-paper register

• Checking your balance only when in line at a store

• Using a budgeting app

• Monitoring your bank's online statements

What should you do if you notice a transaction in your account that you don't recognize?

• Ignore it

• Report it to the bank immediately

• Wait for it to disappear

• Spend more money to balance it out

What is a potential consequence of not tracking your spending?

• Increased savings

• Overdrawing your account

• Improved credit score

• Lower bank fees

What is the benefit of setting up direct deposit for your paycheck?

• Funds are available on your payday

• It increases your account balance

• It reduces your spending

• It eliminates the need for a bank account

What should you do if your account balance does not match your personal transaction record?

• Ignore the discrepancy

• Check for forgotten transactions and reconcile again

• Close your bank account

• Spend more to balance it out