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WorksheetsBanking & Credit
Total questions: 21
Worksheet time: 13mins
Banking is defined as
storing the money you use in everyday life in your sock drawer.
storing the money you use in everyday life on gift cards and cashapp.
storing the money you use in everyday life in a bank or credit union.
Banks are businesses that are PRIMARILY run for
Profit (To make money)
financial service (To help people with their money)
better money management
Credit Unions are...
profitable business ran by and for their members. (THey make money off of their customers)
nonprofits ran by and for their members. (They don't make money off of their customers)
nonprofits ran by union officials and trustees.
Should you hide your money at home?
Yes
No
What if your bank gets robbed? Do you lose you money?
Yes. Sucks to be you.
No. It is insured by the government and you get it back.
What are some benefits to banking?
Your money is safe
You earn interest on money in your CHECKING ACCOUNT (The bank pays you!)
You earn interest on money in your SAVINGS ACCOUNT (THe bank pays you)
DEBIT cards let you pay for things wherever you are
ATM cards let you pay for things wherever you are
A checking account is...
the account you use to pay your day to day expenses. It may have a debit card or app you can use to access your money.
the account you use to save your money to pay for large expenses. It may be more difficult to access your money to keep you from spending it and help you keep saving it.
A Savings Account is
the account you use to pay your day to day expenses. It may have a debit card or app you can use to access your money.
the account you use to save your money to pay for large expenses. It may be more difficult to access your money to keep you from spending it and help you keep saving it.
What happens if you overdraw your checking account?
the bank will warn you to put more money in.
the money is not there so your purchase may be declined.
you will get charger big penalty fees by YOUR bank
It can make your "Credit Score" go down
Some of the DISadvantages of using Credit and credit cards
Spending money you don’t have
paying more than you would if you paid cash or used debit card
You buy things you can't afford
If you use the credit poorly, you can get a Poor Credit Score
What is the main reason banks give out credit cards and credit?
To help people
To make money
When you use a charge card,
You can be charged a yearly fee (Around $100)
You can pay the balance whenever you want
You will be charged large late fees if you make a late payment
You will be charged interest (EXTRA MONEY) on your unpaid balance
You can just make the minimum payment WITHOUT having to pay extra money
When you get a credit card bill, it's best to pay
The total amount due
the minumum payment
If you pay the minimum payment,
You save money
you will owe MORE MONEY than you charged on the credit card
What is a Credit Score?
Your credit score doesn't matter in life
How much money you have in your bank account
Your credit score is used by future lenders to evaluate whether they will offer you loans and at WHAT RATE
What is the best credit score?
300
850
Which people need help with managing their credit?
People with an Excellent Score
People with a Good score
People with a Fair score
People with a Poor score
People with a Very Poor score
What do credit scores consider?
Types of Credit
How much money is in your bank account
Payment History (Do you make payments on time and all of the time)
How much money you owe
How old you are
The MOST important things for your credit score are:
Payment History and How much you owe
How much you owe and Length of credit history
Length of credit history and New Credit
New Credit and Types of credit
At what credit score range do you think it’s UNlikely that banks would offer you a loan or credit card?
Poor
Very Poor
Excellent
Fair
Good
Your credit score is important for
Renting a place to live
borrowing money for a car
Borrowing money to buy a place to live
Borrowing money for an off-road vehicle
Sometimes jobs!!!
