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WorksheetsPersonal Financial Literacy Banking
Total questions: 22
Worksheet time: 11mins
Juan saved $1000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
regular savings account
money market account
checking account
certificate of deposit
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly into a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
3 Months
9 Months
24 Months
30 Months
All of the following statements about bank accounts are true EXCEPT
If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails.
Many banks pay interest on the money you deposit into your savings account.
Historically, savings accounts earn higher returns than investments in the stock market.
Money in a checking account is usually easy to access via ATM, debit card or check.
You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for...
Retirement, a house down payment, college tuition
A new cell phone, college tuition, a house down payment
a new cell phone, dinner with friends this weekend, a new bike
retirement, college tuition, a vacation
Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _________________________, 30% of your monthly income towards _____________________, and 20% of your monthly income towards ____________________.
needs, wants, savings
savings, needs, wants
needs, savings, wants
wants, needs, savings
Which represents the BEST time to start saving for your retirement?
as soon as you have your first full-time job
right after you pay off your student loans
once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
at age 45, so you have exactly 20 years until retirement
Which of the following statements is TRUE?
the majority of Americans have an adequate emergency fund
the majority of Americans have sufficient amounts of money saved for retirement
the majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement
the majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement
Experts recommend that you accumulate enough to cover 3 to 6 ___________________________ of expenses in your emergency fund.
Days
Weeks
Months
Years
Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank?
online savings accounts are FDIC insured to a higher limit
online savings accounts typically pay higher interest rates on deposits
online savings accounts are less likely to make you the victim of identity theft
online savings accounts are created specifically for people under age 25
Three of these statements best describe a checking account. Which statement best describes a savings account?
This account offers a convenient way to pay bills and access cash from an ATM
This account pays you interest on money you have put away for later to help your money grow
This account is automatically debited when you use a debit card
This account typically allows an unlimited number of transactions per month
You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?
Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods
Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses
Aunt Tina and her family have high paying jobs and don't worry much about money
Aunt Tina only receives paper paychecks instead of direct deposit
You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
Your credit card company covers the cost
It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted directly from your savings account
Fill in the blanks: If inflation is _______________ your savings account interest rate then you will be _________________________ purchasing power.
higher than, gaining
higher than, losing
equal to, gaining
lower than, losing
Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Wait until her monthly statement arrives so she can check to see if those withdrawals are still there
Wait a week as it is fairly common for the bank to catch mistakes like this
Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry.
Contact her bank immediately as it appears that her account may have been hacked
Which of the following transactions will REDUCE your checking account balance immediately?
writing your monthly rent check which you will mail tomorrow
using your debit card to pay for groceries at the supermarket
using your credit card to pay for your school books
depositing a check at a local bank branch
Which of the following statements is an advantage of online banking?
once you set up online banking, you bank will waive overdraft, ATM, and monthly fees
using online banking allows you to earn a higher interest rate
using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
you can only shop online if your bank account has online banking features
FDIC insurance is --
optional coverage consumers can purchase so that their bank deposits remain safe
insurance bank branches can buy to protect their business against fraud and scams
required if you want to do online or mobile banking
protection for bank customers' deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go our and use your debit card to buy lunch for $12, and movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
Your account will be closed
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
Since you requested overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed.
How often do customers typically receive a bank statement for their checking account?
daily
weekly
monthly
annually
When signing up for a new checking account, you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
Your account will be closed
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
The bank will provide you five days to add funds to your account to cover the overdraft and no fees will be assessed
Fill in the blanks: Direct deposit typically refers to your ________________ sending your _______________ electronically to your bank account.
employer, bills
employer, paycheck
parents, allowance
state government, taxes
